The Dominion. WEDNESDAY, MAY 7, 1913. COST OP LIVING AND RATES OF PAY.

Dominion, Volume 6, Issue 1743, 7 May 1913, Page 6

The Dominion. WEDNESDAY, MAY 7, 1913. COST OP LIVING AND RATES OF PAY.

—*— The statistics regarding labour in i Australia recently issued by the Commonwealth Statistician (Mr. G. H. Kxibbs) emphasise certain economic principles which arc applicable, not only to Australia, but also to all civilised countries. The figures point to two outstanding facts—not new by uny means, but none the less true on that account. The first is that the average cost of living keeps pace, step by step, with every increase ill the average rate of wages; and the second is that in tho long run the position of the average worker is riot improved by isolated or general strikes, or by restricting industrial enterprise by means of unjust and harassing legislation in tho supposed interests of labour. The worker is, of course, entitled to make use of every lawful and legitimate method to better his condition, and all true social reformers arc hoping for the coming of tho time when every man will receivc as wages sufficient to enable him to live in comfort and bring up a healthy family, surrounded by all the necessaries and at least some of the luxuries of life. There are, however, such things as economic laws, and in regard to the cver-increasing demands of labour on capital a system of action and reaction ultimately sets in, whereby increases in wages are followed by higher cost of liviug, and the wageearner is brought face to face with the inexorable fact that though he gets more money he is little better off because he can buy less with it. . The Commonwealth statistics show that the increase in nominal wages during the last 20 years has been slightly more rapid than the increase in the cost of living; but it is a very significant fact that in 1912 the cost of living increased at a much greater rate than the nominal wages. Now, it will be remembered that last year was a period of very pronounced industrial unrest in Australia, especially in New South Wales, tho most populous State; and the increased cost of living was greater in Sydney than in any of the other six capital towns of the Commonwealth. This goes to show that, so far as Sydney is concerned, whatever was gained in wages was more than swallowed up by higher prices, and in addition, to this the enormous losses to the wage-earners caused by idleness during strikes or lock-outs must also be taken into consideration. Another point worth mentioning is that in Victoria the relative increase in wages between 1891 and 1912 has been greater than in any of the other States. This is very significant when it is borne in niind that Victoria has never had a Labour Government, and, for its population, has probably been freer from industrial upheavals than any pf the other Australian States. It is true that the average nominal wages paid in New South Wales (555. 3d. per week) is a little higher than in Victoria (545. 4d.); but this difference is counterbalanced by the higher cost of living in the parent State. Taking the results for the whole of Australia, tho Statistician states that since 1890 there has not been any material improvement in effective wages—that is. to say, in the rate of pay after allowance has been mado for the cost of living. When these facts are considered without passion or prejudice it becomes evident that strikes and lock-outs, and other violent methods of industrial war, designed to secure . increased wages and shorter hours of work, have not proved of any appreciable benefit to the wage-earner. They have engendered much clajs hatred without compensating advantage to the working population. When the industrial classes come to realise that the policy of treating the employer and the capitalist as enemies to be fought to the last ditch is a mistaken and unprofitable one, wo may expect that as reasonable men they will seek a saner and sounder method of progress. To secure the best results there obviously must bo mutual co-operation for the benefit both of emplover and workmen. The capitalist must regard it as a first duty to see that those who are employed by him are well paid, and that the conditions under which they work arc made as wholesome and as pleasant as possible; and tho worker should' also recognise his responsibilities. He must give good honest, work for good wages. Given the recognition of mutual interests as between employer and employee, the good which each should strive for is efficiencyincreased efficiency. The more a wbrker can produce, in the given time, the cheaper that commodity can be sold to the public, and therein lies the secret of the cost of living. High wages go to make high prices! but high wages plus reduced output add still further to the cost of the article produced. And so the thing moves in a cycle, the value to the wage-earner of his higher wages being lost in the increased cost he is put to in purchasing the higherpriced goods. One of the last things thought of nowadays in connection with industrial disputes is the obligation which the employee owes not merely to his employer, but to the social welfare of the community to make himself as efficient as possible in his chosen vocation: Increased efficiency is a sure road to the lessening of the cost of production. At present we know the cost of production is constantly climbing up. The expenses of production cannot- go on increasing without damage to th" industry in one of two ways, as is pointed out very clearly by Mr. J. A. ITouson in his book 'on Th.c Science »/ Wealth. "If foreign ,»■ other outside competition prevents the employers from raising the price of the product so as to meet the ««h- ' haneed expenses of production. tlv? trade will perish because no fresh capital will flow into it. and the ■ wear and tear of nxistinir capital will not be replaced. If it is p OS _ ■ siblr to raise the* prim of I lie product, l.liat rise nf priee inusi cam 1 " | a slirin bge of d'Miiand, and fhis will | nvan a r'-diiction ( if employm-nt • labour which, .in ils luni, must ' rbimnpe 111" fflieiency' of I In- biliour ' nrfrnniVnlion.'' 11l any j| j.. ' hicrh time llie pri»i>nt. per!-.d n f ' r-fcvife KSV<? nl.im in nn "uyt> 0 f , reason"- and mutual good-will. I