THE NEW BONUS.

Press, Volume LVI, Issue 16986, 8 November 1920, Page 6

THE NEW BONUS.

DUNEDIN OPINION. (SPECIAL TO "THE PRESS.") DUNEDIN, November 6. A "Star" reporter to-day interviewed several large employers as to the effect of the Arbitration Court s announcement regarding a further cost-of-livihg bonus. The manager of an iron business spoke quite plainly, in effect, as follows: —"To put up our wages by a further per hour will mean about £2500 a year. I do not anticipate it. will cause a reduction of hands if present conditions hold. ' The question, however, is whether they will ho.d. Ii the effect is that the public cannot or will not pay the increased prices that we must charge, the only alternative w "to. limit the output for a while until things right themselves. The thing works automatically, and nobody call govern it otherwise. In the meantime, I am not at all despondent, but am anxious about Uhe way a final settlement is to be reached it these increases continue." The immediate result in tho carting business is a jump in the charges. Tho employers held a meeting, and resolved to put up the price by 3d per ton. One of the employers put tho position thus: "Tlio position is certainly serious. It means about £S<>"o n year to- one firm alone. It is a big hit all round, even to those employing carters who aro making an endeavour to pass it on. Much worse, however, is- the case of the employer who has contract?, which cannot be varied. Ho must bear the brunt of it."

The manager of a big manufacturing firm said: "What strikes me first of all is that the necessity for this new bonus is not proved. Some necessaries have lately gone up, but the general tendency is downwards. I don't know that I can say anything very definitely n.bout the effects in the woollen trade. Everything is too uncertain, but I don't t:hink it will cause much disturbance. We shall just carry on in the meantime, and see whether we can fairly pass on tho extra cost." Another head man in the same line framed his reply in thdso terms : "Tho idea that many seem to (have is that the fund from which these increases are paid is inexhaustible. That is a mistake. One factor which is not properly sighted is that all the big, firms aro 'holding very heavy stocks of boots and wearing apparel, stocks in excess of the demand. One boot factory in Auckland is jroing out of business. The owners evidently do not find it a gold mime, but I am not at all pessimistic. In the meantime, we must just carry on in hopes that the present jumblo rnav be merely a passing phase, and thiat things may take a turn. I am not afraid that the heavens will fall. The trouble now on us may cause somo of the smaller firms much inconvenience. Perhaps thev will liavo to shut down, but tlie really strong concerns will battle on and hope for calmer weather. The sorrow I feel is for tho workers themselves. Everybody cried out for increased output. The employers managed to bring that about, and /low we have financial trouble, and risk of unemployment being a worry to the whole community." The Dunedin City Corporation being one of the biggest employers of labour, Councillor W. B. TaVerner (chairman of tho Finance Committee) was amongst those approached and he replied as follows:—"Speaking from memory, the increases of the last 18 months in wages and bonuses represent approximately £50,000 a year. The increase now announced means an extra £15,000 a year. So far we have not passed on these charges to con si: rs of utility supplies, and as a consequence we provide the cheapest trams, gas, and electric power and lighting in Australasia. What we have done up to the present is to increase tho levy on the trading department from 1 per cent to 2 per cent on capital invested, and it is considered that that is the safe limit to which such a process can be carried. Obviously, if the bonus continues to increase, some of it will have to be passed on. The charges to the eonsumors will have to he increased. That will-bo done, I should say before we talk of increasing the rates." WHAT WILL IT COST ? MR PRYOR. REPLIES TO CRITICISM. The statement made by Mr W. Pryor, secretary of the New Zealand Employers' Federation, as to the probable effect of tho new cost of living bonus on industries which would have to pay it, was criticised by Mr E. Kennedy, president of the Trades and Labour Council, on the ground of inaccuracy and overstatement. Air Pryor estimated the addition to tho wages bill of the Dominion at £4,000,000 to £5,000,000- Mr Kennedy gave reason for supposing it to be not much over £1,000,0(X), based on the assumption that some 80,CKj0 workers in various unions would participate more or less in the bonus. Mr Pryor replied to tho criticism in a statement to tho press on Friday evening. "My figures wero based on the increases granted by the Court since tho beginning of the year, not merely on the latest bonus of 95," said Mr Pryor. "We estimate that the new bonus of 9s will represent, roughly, an addition of about £2,000,000 annually to the wages bill of the Dominion, and that estimate is not vory far away from Mr Kennedy's figures. Mr Kennedy bases his figures on the number of 82,000 trades unionists. It is ridiculous to suggest that the effect of the bonus ceases with these 82,000 workers alone. The great army of workers in the Dominion outside of that number will expect—in any case, they will demand—the same bonus as that granted by the» Court, even where no award is in existence. The general body of workers in the Dominion is affected, and, considered from that point of view, the estimate of £4,000,000 to £5.000.000 is not exaggerated, and certainly is no sensational statement."