BASIC WAGES

Dominion, Volume 12, Issue 179, 24 April 1919, Page 8

BASIC WAGES

THE COST OF LIVING

ARBITRATION COURT'S DECISION While the Arbitration Court was fittine in Christchurch recently (lie President (His Honour Mr. Justice btnnger) , stated that the Court intended to consider the question of fixing a basic wage ami then giving a bonus whicii would increase or decrease in accordance with fluctuations in the cost of living, bubeefineutly, in Dunedin, thii Court considered the matter, nnd made a preliminary announcement of its decision. The Court now has filed a memorandum, t!ie full text of which is as follows:— In the'matter of the War legislation mid Statute L:nv Amendment Act, 1918. and of. various applications thereunder. . Under section 18 of the War Legislation and Statute Law. Amendment Act, 191b, any party to' in award may, at any time, and from time to tune, apply Io tin- Court for an amendment of such iiwurd in so far as the provisions thereof determine the horns of employment, or the rates of remuneration of tho workers affected thereby. In dealing with a«v such application:) the Court 13 directed to take into consideration (amongst other thangs.i any increase, Mnce the date of tho award, in tlie cost of living. In pursminee of the provisions of the Act many applications have already been made to tho Court, and many more will doubtless be made. .It seems desirable, therefore.-to lay down some general principles on which the Court proposes to deal with such applications. In the first place, it is obvious that if the Court is to take into- consideration tho increased cost of living between tho time of making the award and of the application for amendment, and to grant increases in wages accordingly, such increases might result in tlie wages of workers in the same, industry being made to vary in different districts, as the increases would depend upon the accidents of the date of the award and the date of the application. Anomalies of this kind would inevitably give rise, to discunlcnt. iiml should, therefore, be avoided if'possible. It is, moreover, undesirable tlmt the rate of wagos of workers in an industry should be liable to variation {it short'intervals, as this would be embarrassing, if not unfair to employers, especially in cases where, as freciuently happens, they enter into contracts extending over considerable periods, and involving tlie employment of a large number of workers.

In order, therefore, to prwerve some sort oF uniformity, flin Court proposes to fix basic wages for three classes of workers—viz., skilled, semi-skilled, and miskilled, which wages will not be subject to variation during the currency of the award, but will, of course, be open for reconsideration on the makintj'of any new award affecting such workers. In addition to these basic wages the Court will grant to workers a bonus by way of compensation for the incrense in tho cost of living-, and tbis bonus will bo varied from time to time according to the rise or fall in the cost, of living, as ascertained for the Dominion. In order to give effect to this fichemo periodical adjustments of the bonus will be necessary, and tho Court hns decided that such adjustments should be made half-yearly. The Court has consulted the Government Statistician on tins point, and'be advises tliat for the purpose indicated tho half-yearly periods ending March 31 and September 30 would bo the most ctjuitable that could be selected, and ho has undertaken to prepare index numbers showing the variation in the cost of living during these periods in each year. .. It will also be necessary to bring tlio wnges of tho different classes of .workers into line before the application of tho principle underlying tho scheme. The Court, therefore, has determined to hx tho basic wages as follows:— i Skilled workers, Is. 7Jd. per hour. Semi-skilled, Is. i\d. and Is. Od. per hour (according to degroo of skill). Unskilled, Is. 3Jd. per hour. Theso wages are substantial nicrensos for the different classes of workers upon the wages prevailing immediately prior to the war, and to some : extent, although not wholly, compensate the work-, ers for the increases in the cost of living up to tho time of' the passing of the recent Act. To tho above .wages will now be added n. bonus of 2Jd. per hour to compensate the workers for the further increase in tho cost of living up to March 31, 1919; and this bonus, ns before slated, will bo readjusted ae on September 30 and March 31 in each year, in accordance with tho increase or decrease in the cost of living, as ascertained by the Government Statistician as tho average for the Dominion, the first adjustment Iβ take place as soon after September 30 next as is found practicable. It must be understood that the scheme above indicated is not to lie applied as a hard-and-fast rule, but will be fiiibject to modification, if necessary, to meet special cases, or those where the working conditions of tho trade affected may be unusual. It will, however, it is hoped, Jμ a ■ working guide for the determination of cases comiiiK , before Conciliation Councils,' especially those in which the remuneration of craftsmen and their assistants is concerned.' . Inasmuch as the boiius is to be given to workers as compensation for the increased cost of living, and is to ho vnrii'd in conformity 'with tlfo vnnntions from time to time in such cost of living, it has been decided to exclude the bonus from the computation of payment of overtime. In view of this, and also of the fact that recent investjsa-' tions, both in England and America, have shown that tho working ot overtime is inimical to the health, efficiency, and contentment of workers, the Court has determined to jtrant a substantial tf Tease in the amounts to be paid for overtime work, and will in future, unless spod cniiso is shown to fbe contrary, prescribe payment for overtime at the rate of timo and a half for tho first three hours, and thereafter double time. This, it is hoped, will' result. in the nmoiint of overtime beinjt largely reduced, except in sneciivlly. urgent cases, in which the employer -mny reasonably be expected to make special provision for o.virn remuneration to tlie work er= concerned. The;present statement has no apnlication to questions arising with regard to iiie wages of females, which, in the opinion of tho Court, appear in many cases to be lower tban can reasonably bo" maintained under present conditions; nor does it apply to those workers enKn»ed in various occupations in whiHi they are in regular employment al weekl/'or monthly *<ilnries. AU such enses will be cleailt with on tboir merits, nnd ns occasion to consider them mny nnse.