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Hokitika Guardian, 9 September 1926, Page 2

Titk task that has to be faced by all the industries of New Zealand is the reduction of working charges and overhead costs, says the New Zealand Mercantile Gazette, in the course of a leading article on the industries of New Zealand. Tt goes on to say: “In all industries practically 80 per cent, of cost is swallowed in wages. There is no flexibility about wages; they are rigid, and made rigid by the Arbitration Court. -It would, therefore, 1m? impossible to adjust wages to suit the changed conditions, for any attempt at adjustment, anil such adjustment must be- in the direction of lowering wages, would be strenuously resisted, even if the Arbitration Court were favourably disposed. It would, of course, be manifestly unfair and unjust to reduce wages and not- Tcduce commodity prices. If both fall together, and relatively, there would be no interference with the standard of living, for the purchasing power of the reduced wage would be equal to higher wage with the present level of commodity prices. It would be very difficult to convince the workers of this aspect of the matter, and therefore the lowering of wagss would be resisted. The movement -will take a more drastic course, and will bo brought about bv unemployment in the various industries. In the timber industry, it is understood tlmt short time is being worked at some sawmills in order to keep staffs together, but there is a further shrinkage in sales. The outlook is not very encouraging, and it would he disastrous if the prices for our primary products contract further, and so lessen the spending power of the community. The Dominion it seems must soon face, and endeavour to solve, some very serious economic problems.”