RETRENCUMENT..

Hokitika Guardian, 24 January 1922, Page 2

RETRENCUMENT..

[by telegraph—per press association] LETTER. TO MR- MASSEY. WELLINGTON, Jan. 23 In a long letter to Mr Massey, Mr F. IV. Millar, secretary of the Public Service Association, deals with the Government’s retrenchment proposals. He submits the following summary of ~ amendments required to keep faith with the Association’s agreement:— (1) No reduction in salary or salary bonus until April Ist, 1922. (2) No further reduction unless the cost of living falls 10 per cent, i.e., to 42 per cent and 32 per cent respectively.

(3) The present decrease, based on 52 per cent, with three reductions from April Ist, 1922, to be £ls for all officers (no matter what their salary may be, as the salary bonus was on a flat rate) who received a £3O salary bonus in 1920, and a proportionate reduction in the case of those officers who received a £2O salary bonus at that date. Any further reduction, to be at not less than six-monthly periods, and to lie on the same basis.

(4) A provision for a rateable increase in the event of the cost of living rising if it rises 10 points).

The Government is also asked to seriously consider the effect of breaking an honourable understanding.

PROTEST BY STATE EMPLOYEES. WELLINGTON, Jan. 23 A big meeting of the State employees was held in the Town Hall' to discuss the Government Retrenchment Bill. The organisations represented were: Post and Telegraph Officers’ Association, Public Service Association, Amalgamated Society, of Railway Servants, and Railway Officers’ Institute. There were speakers from each of the bodies mentioned, and afterwards this meeting was thrown open for general discussion in which the Government’s proposals were roundly condemned. The following motion was passed unanimously by the meeting, which it is estimated close upon>. 3000 people attended:— “That this general meeting df the Wellington Public Servants enters a strong protest, and an emphatic protest, against the proposals to reduce their salaries, as outlined in the Public Expenditure Adjustment Bill, on the grounds that the basic wage of £165 in 1914, was only increased by 56 per cent when the April, 1920, adjustment took place. Although the cost of living subsequently rose to 80 per cent above the 1914 level, no adjustment was made to restore the loss in the spending power of the Public Service income. The cost of living having not yet receded to 4G per cent above 4he 1914 level, no adjustment on the basis of cost of living is due. The present proposals are therefore nothing more or less than special taxation levelled against one section of the community, a section which in the aggregate is far less able to bear klie burden of the tax than other sections. It is impossible to reconcile this special tax on public servants, the majority of whom are only on tlie bread and butter line, while at--*/ the same time specal relief is being v given to the wealthy per medium of rebates. It cannot be shown that the duties of Public Servants have been lightened in weight 'or in responsibility since the basis of their remuneration was last fixed. The meeting therefore calls upon the Wellington members of Parliament to oppose the proposals, botli on principle and in detail.”

CABINET RELENTING. WELLINGTON, Jan. 23.

Cabinet has commenced consideration of the Public Service objections to retrenchment, and is prepared to make modifications where full bonuses have not been secured. It will also meet the cases of the men who, as the result of retrenchment have taken reduced positions. The Government is absolutely firm, however, in its determination to apply the first cut of £ls per annum, or, in the cases of wages men, one shilling per day. It promises that subsequent reductions may be at the maximum amount provided in the expenditure bill. If the cost of living figures indicated for 6ucli a concession it might delay the second and third cuts, as the Bill provided that the Judge of the Arbitration Court was to report to the Finance Minister on the ratio' to the cost of living at February 28th and May 31st, compared with the figures of March 31st, 1920. THE PREMIER’S PROMISE. WELLINGTON, Jan. 23 Regarding the retrenchment, the Cabinet has commenced consideration of the Public Service objections -to retrenchment. It is understood that it is prepared to make some modifications where the full bonuses have not been secured, and, in addition, it is stated that where officers have already accepted reduction in status as part of the retrenchment, as in the Post and Telegraph Department, their position will be specially considered. Cabinet, however, will certainly apply first cut at the rate of £ls per annum and for wages men, one shilling per day only. The result'of the deputations in this connection has been to secure from the Prime Minister a promise that the subsequent reductions may not be made at maximum amounts provided for in the Public Expenditure Adjustment Bill, if the cost of living figures indicate any need for such concession. As the Judge of the Arbitration Court lias, been asked to report to the Minister of Finance on the ratio between the cost of living at February 28, aud May 31, compared with figures of March 31, 1920, it is explained that on this investigation will depend the extent of the further reductions to be made at the Ist of April and Ist of July- . „ The Arbitration Court has a similar duty to perform in respect to the general awards, as at March 31, and September 30. V