NEW COST-OF-LIVING BONUS

Dominion, Volume 14, Issue 35, 5 November 1920, Page 6

NEW COST-OF-LIVING BONUS

PROTEST FROM EMPLOYERS WHAT THE INCREASE WILL MEAN £4,000,000 TO £5,000,000 PER YEAR SUGGESTED AMENDMENT OF ACT The announcement of tho Arbitration Court with refercueo to tho granting of a fresh cost-of-living bonus is viewed with very serious concern by employers, and a statement presenting their view of tha matter was mado yesterday by Jtr. W. Pryor, fiecretnrv of the Now Zealand Employers' Federation. "Tho Court's pronouncement camo as a staggering blow to rlie employers _of the Dominion, and will mean tho placing of a further burden upon the' general community by an. additional increase in the cost of living," said Mr, Pryor. "Vary great anxiety is being expressed by employers throughout the Dominion, ad shown by tho large number of telegrams received'by mo to-day Indications are not wanting thai; in many directions the ability to pass these increases on is very nearly at tin end, and that many trades and industries will be seriously ail'eoted in consequence. It is felt that the p(tblio generally do not realise, the effects of the policy which has boen adopted by the Court with regard to amendments, of awards biuce the passing of sections 18 and' 19 of the War Legislation and Statute Low Amendment Act, 1918. Thcsn clauses give the Courtl power to amend awards so far as wages and hours of employment are concerned, and, inter alia, provide that tho. Court shall take, into consideration anv increase in tho cost of living affecting the workers, or any . class of workers, engaged in any industry. On tho coming into operation of these clauses, tlie Court canto to the conclusion that it was mandator}' u]>°u to increase wager? in proportion to the incro:i?? in the cost of living as shown by the .Government Statistician. The federation's interpretation of tho clauses does not agree with that placed uiioa them by tlio Court, and legal opinion strengthens tho view that the Court has discretionary powers in the matter. Tho Court- has, however, in adopting the new that tho clauses are mandatory, .awarded bonuses • strictly in keeping with the 'Statistician's estimated increase in the cost of living. This policy resulted in a tonus of 4s. jer week being granted as from .1 miliary 1 I his year, another 6s. nil from '.May 1, audi now jUie present bonus of 9s. per week operating from the first of this month, making a total increase, so far as bmiuws alonjj are concomed, of 19s. per week to all workers. Addition to Cost of. Living. "It is useless to ignore,the fact that tliW increase must result! in a _ very material addition to tho cost of living, and while it is impossible at the moment to give c-ven approximately oxact figures, it is certain that tho addition to the wages bill of the Dominion will lie tt least £4,000,000 to per annum, which, miist either bo passed on to tli# general public or have very serious rei suits as far as the traders are concerned As showing something of tlie individual e clfec.'s which may .bo expected, one Wellington firm to-day reported that the new bonus would involve an additional outlay of j;"500 per. annum to it, and arrangements would liave to be mado immediately to pass this increase on to tho public. „ "A meeting of tho Parliamentary Committee of tlie federation was held this afternoon to consider tlio position, and it was decided to approach the Government for a ropeal of the clauses in quostSon in order that tlio Arbitration Court might be free to give its decisions after having taken all- material • circumstances into consideration. It was also resolved to urge that, while allowing for the increase in tho cost of living and tlie ability of tbe- employer and tlio public _ to pay, the effects, so far as a further lncrcaso in tho cost, of living was concerned, might be dealt with and provided for. It is felt flint this is not a matter con- • coming the employers alone, as every person in Hie Dominion is vitally interoslcd. If the extra charge can bo passed on, the public will have to pay ; if it cannot I>o passed on, disaster will come to the tirades and industries of the country, unemployment will be rife, and people generally will not l\avo the wherewithal to meet the ordinary demand! of life. Parliament Should Act at Once, "That being the case, it i 9 submitted thai Parliament should deal with the matter and alter tho law as suggested. In view of the seriousness of tlie whole situation it is urged that Parliament should deal with the matter immediately and amend tilio law as may be required, before the present session closes. 1 may say that the federation, did not raise any objection to the pnssing of this legislation as a temporary war measure, but what is submitted is :|hat the time lias passed for legislation of this kind, and that the ordinary means of deciding these questions should now be adopted. "ANTICIPATED A LITTLE •MORE" TRADES UNION OPINIONS. The opinion in trades union circles is generally favourable to the new bonus, but in'some quarters it was expected that tlie Court would have announced a greater increase. "We anticipated a little more." remarked one union secretary to a Dominion reporter, and thought that the bonus would be m the region of 2{d. to tkl. per hour, instead of aid. per hour, to male workers. "TVe tliink that some provision should have been made towards meeting the inciease in the price of butter,' said nnotlier official. "Despite the Court s pronouncement that 'it cannot grant a bonus based upon tbe increased price M any particular commodity,' we are all pning to apply for a butter bonus at the Wellington sittings of the Court.'