Wages in New South Wales

Hokitika Guardian, 28 June 1921, Page 3

Wages in New South Wales

! DANGEROUS POSITION LIKELY. I SYDNEY. Julie i-L i An example of tile danger of adopting entirely new schemes involving legislative or socialistic experiments without ! seeing clearly where they are going to ; lead Is afforded at the present time ! in New South Wales in connexion with 1 the hhsic wage arrangement. | At the end of the war and during the post-war period, when economic conditions throughout the world were practically in a fluid state, and wages were trying to follow the cost of living in a mad climb skyward, the New South Wales Government adopted the basic wage system. A Board of Trade authorised to make a close inquiry into the cost of living in the State, take all the contributing factors into consideration, and declare the lowest amount on which a man, his wife and three children could live for one. week. This was then declared to be the ‘'basic wage” and no adult male worker in the State was to receive less than this, except in very exceptional circumstances, j This wage was fixed every year, and it certainly helped to keep labour quiet ;1 l a time of great difficulty. Prices wore steadily soaring, and of course the basic wage increased year after year , Last October; it was declared to be L i | As. per week, and the Board is now j getting into action with a view to tnak- j ing ttiis year's declaration next October, j Now comes the reverse side of the picture. Organised labour had a score of reasons for lifting the basic wage, but it was raised because the cost of .living was greater. Organised labour still urges its reasons, but the cost of living has fallen, and therefore, tinbasic wage must come down ton. Prices reached their peak in this country in , September last, and the fall since then j in common foodstuffs alone, represents 18 per cent. The trading and employing class, who (ind present conditions n tremendous handicap upon eommeicial enterprises, arc clamouring for a lower basic wage; hut organised labour is idviiig every indication that it u ill tight to the Inst ditch against any reduction whatever. Which is just what organised Labour might be expected to do.

Tin* Board of Trade is composed of trained business men. who have some sligld knowledge <>l economies, and in fairness and reason they must make Mime slight reduction in the basic wage Otherwise the basic wage arrangement becomes a farce. The Labour organisations. of course, see a fight coniine, and arc rallying their forces. The I iliour Cabinet in this State is in a dilemma. It is suffering great opprobrium because of the deplorable state <>! its finance—which is caused mostly by the basic wage in the civil ■service. But it dare not defy the unions.