CUT IN WAGES.

Waikato Times, Volume 109, Issue 18345, 3 June 1931, Page 6

CUT IN WAGES.

“NOT JUSTIFIED.”

MR LEE MARTIN DOUBTFUL. INDUSTRIES SHOULD STATE CASE. Commenting on the wage reductions Mr W. Lee Martin, M.P., interviewed by a Waikato Times reporter,. stated that the Arbitration Court, having decided to reduce wages 10 per cent., it remained to be seen if the desired effect would be produced—that is, a reduction in the cost of living and the provision of more employment. If this did not result then the purpose of wage reductions would be defeated. Mr Martin was of opinion that a universal reduction of wages by 10 per cent, was not justified, and considered that each industry should be called upon to state its case and justify its olaim to the reduction. He Instanced the case of Wilson's (Portland) Cement Company, which last week declared a dividend of 12£ per cent., and asked if there was any justification for a reduction In that case. In his memorandum Mr Justice Frazer had made a special appeal to manufacturers and traders to pass on the benefit of reduced costs to their customers. The Prime Minister had done the same, and the president of the New Zealand Employers’ Federation had also stressed the point. His words were: “A grave responsibility now rests on every section of employers in the Dominion to put the order into effect and pass on to the public the accumulated effect of the reduction in wages by way of reduced costs." . Mr Martin said time would tell the tale, hut he was of the opinion that costs would not come down nearly as rapidly as wages, nor in the same proportion. That, he thought, was borne out by the statement of Mr Albert Spencer, president of the Auckland Provincial Employers’ Association, who said: “The executive is urging all employers to pass on the reduction in lower prices for .their goods wherever possible. In some cases, however, an equivalent reduction has already been made, so that it is not to be expected that everybody could suddenly reduce prices.” In any case, added Mr Martin, the question of reducing costs could not be effectively met until fixed charges were also reduced.

AUCKLAND TRAMWAYMEN. WILL APPLY FOR EXEMPTION. AUCKLAND, Wednesday. A report that the Tramwaymen’s Union was considering methods of resisting any wages reduction was denied by the secretary of the union, Mr J. Liddell, last evening. If a reduction was made, Mr Liddell said the union would apply to the Arbitration Court for exemption.