EXEMPTION SOUGHT

Evening Post, Volume CXII, Issue 84, 6 October 1931, Page 13

EXEMPTION SOUGHT

TEN PER CENT. CUT

STOREMEN AND PACKERS An'application made by the Wellington. Storeraen and Puckers and Warehouse I Employees' Union to be exempted from the general order lor a 10 per cent, cut in wages was beard by the Court of Arbitration yesterday. The special grounds upon which the application was based we to as follows:—^1) That the economic and financial conditions o£ the oil .industry do not justify the application of the general order of the Court. (2) That in the matter of payment of wages, the employers have, as a general rule, observed the minimum as the maximum, and not shared the abnormal prosperity enjoyed during the Period of inflation and prosperity, with Itheir workers.

Mr. J, Tucker appeared for the Wellington Stdremen and Packers and Warehouse Employees' Union, and Mr. W. J. Mountjoy appeared for the employers. Outlining the case for the' union, Mr. Tucker said that the whole of the profits made in the oil industry go out o£ the country. The capital invested, he asserted, had been inflated to cover profits, and the capital registered had no corresponding counterpart in the development ot the industry in New Zealand.- The Vacuum Oil Company had raised the registered capital ■■• from £000,000 to £10,000,000. Every kind o£ oil and grease imported .bowed a substantial proiit. lhe reduction in oil prices caused by the American oil, war had not been fully passed ■on to the local consumer. The \vaze» paid to workers under the awards ■were reduced in January to-a minimum, and in June by another 10 per, cent, making a total of 17 per cent. Workers in this industry were not paid equalwage wa* not applied to the managerial and office staff, but only to those working under the award. The bulk importation- of oil had during the l.«t two year..reduced the number of workers by over 60 per cent, and the cost of distribution proportionately, yet the price remained the m and wages had been .educed. It must be clear to the Court, md Mr. Tucker, that the economic state of the industry consisted of .git-edged profits, and that the Royal Dutch Shell tad the Vacuum Oil Proprietary, with their fleet of tanker., insurance {^...money-lending system* could pay a. higher few mefl employed without affecting, their WMr r Mountjoy said ib was submitted by a^ov parried on business as wnoieaaie %&&•&•&*£&£ the oil companies carrying .on business in if +h« current award, there Had oeen a. not affect the oil companies cairymg on business in New Zealand finally th all other trades covered by the aw aid.The decision of the Court was reserved.