ADJUSTMENT OF WAGES.

Hokitika Guardian, 24 March 1922, Page 4

ADJUSTMENT OF WAGES.

COST OF LIVING BASIS- j

STATEMENT BY ARBITRATION

COURT.

WELLNGTON, March 22. To-day the Arbitration Court answered a number of questions put to it yesterday by Mr E Kennedy, president of the "Wellington Trades and Labour Council in reference to the provisions of the Arbitration Amendment Act passed last session. The President (Mr Justice Frazei) expressed the opinion that the wording of the Act asking the Court" to cte c ide a fair standard of living meant more than the wording of the expiring Act, “a fair living wage.” The Court, after hearing general argument in Wellington, will consider the question of a fair standard of living before making its general order which vVill readjust wageß throughout the Dominion. RIGHTS OF PARTIES. Mr Kennedy stated: “It is proposed in section 9 that the Court may amend the provisions of awards and agree ments, and subsection 2 of this clause provides that the Court shall have regard to any' increase or decrease in the cost of living ascertained etc., and the proviso in this direction provides that the parties ma y have an opportunity to be etc.” He asked: ‘‘Does this mean that all parties to awards, etc., have the right to be heard or to make representations to the Court, or is it intended by the Court to hear one general case to cover the lot?’ The Court replied: “Parties have the right to be heard through their representatives. The Court will hear one general (; ase in Wellington to cover all awards and industrial agreements throughout the Dominion. It is thought that three or four representatives for each side will be sufficient. The procedure in this matter has been left to the discretion of the Court, and the Court proposes to follow the practice that has obtained in the past in connexion with applications to review its pronouncements under the War Legislation and Statute Law Amendment Act, 1918, The Court will endeavour to make anannouncement in regard to the moment in the cost of living about fche end of the present month, and on April 26th., will hear evidence and argument respecting economic and financial conditions affecting trade and industry in the Dominion and all other relevant considerations.” exemptions FROM GENERAL ORDER. The second point raised by Mr Kennedy was: “Subsection 4of clause 9 states that certain classes of worker* may be exempted from tlie general order. Then, subsection 15 provides how the application for exemption is to be. Can all or any union make application to be excluded from the general order before such order has been issued,? Or, in other words would any union bo in order in immediately proceeding to file an -application for exclusion from such general order in anticipation of such order being made 9 ” The reply was: “Subsection 4 is primarily intended for the benefit of any class or section of workers whose position in regard to the cost of living increases now being paid is exceptional. For example: in some awards and agreements provision has been made that no increase or reduction in wages should be done during their currency or that any increase or reduction should be calculated in a particular manner or on a special basis. There are also a few eases in which the bonus has become due since the award or agreement came into force, but has not been formally applied for or granted, or has been granted at a reduced rate Tn one ease, owing to the strained financial condition of the industry, the November 1921, bonus was withheld from nil but the minimum rate men. The Court will, without any application being made, exclude such cases as it knows to be within the exception provided for by the sub-section. Any union whose case has been overlooked may apply for exclusion after the general order is made. Tt cannot make application before the general order has has been made, for until the amount of any general reduction is definitely ascertained, and until it is known what classes or sections of worker have been excluded by the general order it will be impossible to say whether, or to what extent, an y application should Ire entertained. There is, however, no objection to secretaries of unions whose cases are clearly within the exception forwarding to the Registrar of the Court before the general order is made reference to the clauses of their awards or industrial agreements on which they rely, but the Court will deal only with clear cases in the general order. Tn cases where prompt application is made by the unions after the issue of tho general order, the exclusion will be made to operate as from the date of coming into operation of the genera ■Order. In the case of applications by employers for the exclusion of any clasß or section of workers from thte operation of the general order on the ground that a greater reduction should be made, it will be necessary to prove the existence of exceptional economic conditions affecting tho particular trade or industry concerned, and the Court, will have to be satisfied that such reduction, if made, will not reduce the rate of remuneration to a lower wage than will enable the workers to maintain a fair standard of living.”

THE STANDARD OF LIVING. The third point was important. Mr Kennedy said'.: “Sub-section 4 of clause 9 also contains a proviso as follows; ‘Provided that the Court shall not reduce the rate of remuneration of any such workers to a lower wage than will, in the opinion of the Court, enable such workers to maintain a fair standard of living.’ This proviso opens up the question of what is a fair standard of living and how is itto be ascertained? Is the Court going to give an opportunity to us to discuss this important matter? (And will the Court before considering the issuing of any general order, lay down what is the amount necessary to provide a fair standard of living?” “In the legislation now about to expire,” said the Court, “the term used is a fair living wage. The Court has always aimed at something more than a mere living wage, and has endeavoured in its awards to maintain a. fair standard of living. The conception of what constitutes a fair standard of liv-

ing may vary from time to time, but it is thought the altered wording of the new Act is intended to enable the Court to maintain as far as possible its relative standards. The proviso, which repeats similar words to those contain- ’ ed in sub-section 2, is, in our opinion, desiguedl primarily to prevent the granting of an application by an employer or union employers based on the unfavourable economic and financial conditions of the trade or industry to have the rates of remuneration reduced to an extent greater than that indicated by the movement in the cost of living. If the effect of the granting of the application would be to prejui'ice the maintenance of a fair standard of living, although the rates asked for might represent a living wage, the Court does not propose to make any detailed statement on the subject prior to the hearing or to lay down any general principles, but will at the hearing on April 26th be glad to note what the representatives of the parties may desire to place before it on the subject of a fair standard of living. EFFECT OF ORDER ON CASES FILED. Mr Kennedy’s final point: ‘Many unions have disputes filed, and pending hearing by this Court. What is their position in regard to genera] order ? Will they have to file an application for exclusion from the general order as well, or will the fact of having a dispute filed and a case pending be sufficient to exclude them from the order as well as the case for a new award?”

The Court’s answer is: “The general order will apply to existing awards and industrial agreements, unless the Court makes a special order to the contrary The Court will, without formal applica tiou being filed, make such provision in any new award made after the coming into operation of the general order as if considers proper for the period intervening between the date of the coming into operation of the general order and the date of the coming into force of the new award, if it considers that the general order should not apply in the interim. The rates fixed by awards made after the coming into operation of the general order will, of course, not be affected by that order.” The President said that the date (April 26th) for the hearing of the general case should be regarded as approximate only. It was more than likely, however, that argument would be heard then. He left if to the Wellington Trades and Labour Council to arrange for Labour’s representation at the hearing.