THE BREAKING POINT.

Wanganui Herald, Volume LIII, Issue 160811, 19 November 1920, Page 9

THE BREAKING POINT.

LIMIT NEARLY REACHED

WAGES AND THE COST OP LIVING.

Evidence was. forthcoming at the sitting of the Arbitration Court this morning to show that in some trades at least, the limit where increases could be passed on to the public was being reached, and that" if conditions did not change, the breaking point would soon be reached; The discussion arose during the hearing of applications for the 9/- cost of living bonus recently recommended by the Arbitration Court.

V/hen applications-from the Wellington Country District Private Hotel and Boardinghouse employees and from the Wanganui, Palmerston North and Oroua Licensing Districts Licensed. Hotel employees came before the Court, the employers’ re-presentative,-'Mr A. Weekes, said that he had a letter handed to him unsolicited from the' president of the Licensed Victuallers’ Association, and one from four of the leading private hotels. Proceeding, he said that the greater majority of the employees in the trade were single persons. Mr Weekes proceeded co read the letters he had mentioned. The Licensed Victuallers’ Association emphatically protested against awarding the 9/- bonus, and tended that the burden of the cost of living pressed heavily on the hotelkeepers and was not shared hy those whose needs in food and lodging and .lighting were supplied by the proprietors. The writer said that the Association could not understand why this point was not considered and pointed out that the limit in passing the increase on had nearly been reached. It had been often said that the bar/was of great help to the trade, but 'the price of beer and spirits had been considerably increased, spirits by 500 per cent, and beer by 50 per cent. Only about 50 per cent of the increase had been passed on. His Honor; But the people drink as much as ever to-day.

Mr Weekes; No doubt, but the licensees are not much better off. His Honor: I merely asked in order to find out whether there had been any economy in this direction. Mr Weekes: There was very little economy; they could only save a very small section. Referring to the position of private hotelkeepers, Mr Weekes said that those who catereji for the working man found themselves in a serious position, for it was almost impossible for them to raise the tariff to meet the increase.

In reading a letter from four of the local private hotelkeepers, Mr Weekes stated tnat they emphatically protested against the bonus, holding that the cost of living did not affect the employees. If anyone should receive compensation for the Increase, it was the private hotelkeepers, for it was upon them that the burden fell, and the limit to which tariffs could ’be raised had nearly been reached. It was an absurd anomaly in British justice that because the price of bread and butter was increased, that the employer, who had to pay for this increase, had also to pay a corresponding amount to thd employee to,whom that bread and butter was given. Hotel workers, it was contended, were already overpaid, to the detriment of the travelling public. It was only in the matter of clothing that present-day prices affected this class of worker, and it was contended that the increase in■ wages had a very harmful effect, alleging that all their money was wasted on luxurious dress. It was further contended that the rate of wages was sufficient without taking into consideration the generous amount given out in tips. The writers said that they did not know of one case where the employee was not provided by the employees.

Mr Miller, for the Union, said that in view of the whole question of bonus being discussed at Wellington, he would refrain from making any comments at present. A somewhat similar condition of affairs was stated to prevail In the bakers’-Dind pastry cooks' trade.

Mr Weekes mentioned that since the Board of Trade had fixed the price of bread prices for commodities had increased considerably, and unless some relief was given some of the smaller firms would have-to go out of business. There was one baker in Wanganui who could not employ labour and his wife had to get up at three o’clock in the morning to help him. This was not an isolated case and it was a condition of affairs which should not be allowed.

. Referring more particularly to the pastry cobks’, side ot the case, Mr W. S. Dustin, inahe course of evidence, produced a statement -which showed that there was little or no profit in the business. He add£d that but for outside catering hq Would not be able to carry on. There had been only one increase in the price of small goods since 1913,-and that was in April last, A bonus of 4/- per week in addition to award rates was being paid. The recent advances In tea room (scale of charges had resulted in 3, considerable falling off ,in trade. After hearing all the applications his Honor remarked that apparently when the charges could be passed on to the public there was no difficulty, but sooner or later they must come to that stage when it would become exceedingly difficult to carry on business any longer and that would cause unemployment. It was hoped that unionists would look into the question very carefully and in some businesses sqg that they did. not kill the goose which laid the golden egg.