THE OUTLOOK FOR WOOL

Hawke's Bay Herald-Tribune, Volume 81, Issue 60, 3 December 1937, Page 6

THE OUTLOOK FOR WOOL

Our Owu CorrespondentJ

Can Industry Afford Higher Wages? STORE-W()RKERS, CLAIMS

(From

AUCKLAND, Last Night. "I submit that the position of the particular industry under consideration to-day is not such as t.o justify any increase in wages," said Mr. G. I. Macdonald, secretary, of the Canterbury Employers' Association, in stating the employers' case at the hearing of the wool, grain, liide and manure stores employees' claims before the Second Arbitration Court. "Nor is the general outlook for New Zealand, or for that matter of the world, one which can justify an increase," he added. World prices for staple commodities such as metals, cotton, wheat and wool were all falling, and it was obvious that the peak prices of May, 1937, were not being maintained and that lower prices generally could be , looked forward to. He added there was no need to emphasise at the moment what that meant to a country so dependent on income from its exports as wag New Zealand. "I would like to point out." continued Mr. MacDonald, "that the recent judgment of the Court ci Arbitration on standard wages indicatcs that the Court contemplated a 'bright future.' No doubt this influenced memhers of the Court, who favoured a substantial mcrease in wages granted to casual workers by that judgment." The following extract from the judgment was quoted by Mr. MacDonald: "The future is not less bright. Wool prices have increased substantially and should be maintained, if not further increased." "How unfortunate it is for New Zealand that we know that this is not the case," he said. "The recent wool saies indicated that the prices in New Zealand this year will probably be from 30 to 40 per cent. lower than last year. How then can we look forward with any great spirit of confidence, and how can any Court to-day justify any increase in wages ? Therefore, I submit that insofar as permanent hands are concerned there is no justification for the increase " Wooibrokers' Vicws. Further reference to wool prices was made by a witness called by Mr. MacDonald, Arthur Emerson Mabin, manager of Levin and Co., and former president of the New Zealand Wooibrokers' Association. He said he had had 49 years' association with the industry and considered that the prospects for the wool industry were far from bright. The information obtained by witness was that the recent Auckland sale prices did not indicate the prices for the whole of the season. They wero likely to be worse, looking at world prospects. Japan was not financial and the China market was eliminated owing to the damage to machinery in China, which bought huge quantities of "tops" from Bradford. The United States market was in a parlous position, which meant the market w^s thrown on to Bradford and the Continent. "The fall in prices in Auckland last Saturday represented nearly 4£d per lb., which meant £4,500,000 less than last year if the fall colitinues," added Mr. Mabin.