WORK PREREQUISITE OF HIGHER WAGES

Chronicle (Levin), 25 February 1947, Page 5

WORK PREREQUISITE OF HIGHER WAGES

' WELLINGTON, Feb. 24. "If -was difficult to see how the proposed general increase in wages, if and when granted, could be met without further impairing the whole basis of stabilisation which was already under mined to a considerable degree," said Mr. Frank Wilson at a meeting of the Wellington Chamber of Commerce. Ilis view was endorsed by othei speakers, emphasis being given to the point that liarder work by all and more production were prerequisites foi higher wages. Mr. Wilson said any general increase in wages must reflect itself in inereased" cokts.r These costs must be recovered either by steppitig" up . the selling prices or by subsidy, both of which' would have undesirable repercussions because, on the present basis of taxa tion, industry- itself could not absorb them. "It has been suggested from a eer tain quarter that wage increases can be accompanied by the complete stabilisation of prices," said AIi\ Wilson " It is a pity that this statemenl lacked an explanation as ro how this could be achieved in any plan of sound eco nomics conforming to democratic prin ciples acceptable to the Dominion. Wliat we must take account of are Ihe serious disparity between money in come and real incOme and the ever widening gulf b'etween them as iufla tionary trends develop. Tliere is also laclc of apprecialfon of tiie high propoftion of wage coiiten-t in production costs and distributing costs of goods and sefvices, and the substantial build up in the ultimate price paid by the worker with each increase in wages anless this is balanced by an equiva- ; en t in erease 'i n -prod uct ion." Mr. W. H. Iiindle said that if people imagined that they were going to.-get more money without producing more or working liarder, there was gaing to be a very sad awakeuinir.