RAISING WAGES

Waikato Times, Volume 109, Issue 18343, 1 June 1931, Page 9

RAISING WAGES

IN TEMPORARY DEPRESSION. AMERICA AND DOMINION, ' ‘ A NO COMPARISON POSSIBLE, f < (Special to Times.) WELLINGTON, Monday.. “While I believe that in the publio Interest If is desirable' that industry should pay tho highest possible wages, I realise that there Is a general tendency to overlook , the .significance of the important word ‘possible,’” said Mr Justice Frazer in delivering to-day the Arbitration Court’s decision of the subject of a reduction dn wage awfcrds.

“I do not believe, however,”, continued His Honour, “that what Henry Ford could do, in the way of raising wages in a period of temporary depression in the motor building trade, can bo done In a general way in a primary producing country, in a time of world wide deflation. Ilenry Ford was dealing with, a highly organised Industry under mass production conditions and with a vast undeveloped market. Ilis policy, though doubtless sound at the time, and in regard to his special circumstances, cannot be generally applied, and tho position of wages and unemployment in the United States of America to-day Is tho best proof of this.” “If wages are artificially maintained at an economically Impossible level, unemployment and the competition of Imported commodities with our own manufactures will Inorease, fresh capital for further development of our Industries will not be forthcoming from profits, and recovery will be delayed.” “Primary production, which depends very largely nowadays on the adoption of modern methods, will fall baok, because of the lack of funds with which to farm the land scientifically; and the principal source of our national Income will beoome still further depleted. If mal-adjustment exists, as a result of changed world conditions, It must be corrected before we can expect to get back to a 'sound basis; and no sophistry can disguise the truth of this proposition.”