WELLINGTON NEWS

Hokitika Guardian, 24 January 1928, Page 4

WELLINGTON NEWS

CONTINUED WAGE-RISE. (Special to “ Guardian WELLINGTON, .Jan. 21. At’ a meeting of the Conciliation Council in Christchurch the other day, .Mr W. C. Prime, Secretary of the Canterbury Employers’ Association, who naturally handled the case, stated: •• The time has come to call a halt in the almost unbroken rise in the scale of standard wages. The limit has lieen reached. Whether money wages cap lie maintained at even their present level will depend mainly on what can he achieved by co-operation between contending parties in the direction of reducing costs and so increasing the purchasing power of the money wages paid.” This is a belated statement to make and has only been drawn from the advocate amongst the employers when the unsheltered industries have protested against the disparity of prices between those demanded of the sheltered industries and those obliged to he accepted by the unsheltered industris. The country cannot afford in most cases, the wages awarded by the Arbitration Court. As a matter of fact, the purchasing power of the community has greatly contracted, and this has been clearly shown by the hanking returns for last quarter. In .June last year the spending power of the community was represented by €31.328,201, while at the end of December this was reduced to €28,008,300. Thus we see that in six months the spending power has decreased by €3,319.308. This enormous decline in so short a period must have an adverse effect on the unemployment market, and, as we know, there are several hundred people unemployed in the country. These advocates appearing before the Arbitration'Court have allowed wages to rise without regard as to whether the industry could a (ford the expansion or whether a return was being obtained from the workers commensurate with the wages paid. It is useless merely suggesting that a halt is necessary. 'Che economic facts will force us to review the condition. The cry ol the unemployed will make that imperative. In dealing with the unemployment the Research Committee in Auckland, in searching for remedies and palliatives states that it is impossible to suggest any panacea which will entirely eliminate unemployment. Under capitalism this is often impossible or impracticable because a reserve of labour is essential under modern conditions. Increasing the tariff is urged in some quarters as a remedy for unemployment. This is largely a fallacy, be-

(auso in countries possessing high tariff walls the problem of unemployment is just as acute, other things being equal, as in countries where the tariff is low. The most serious type of unemployment affecting New Zealand is that associated with the trade cycle. Control of the trade cycle is beyond the power of New Zealand. Ihe problem of seasonal and casual unemployment is difficult of solution, and it is suggested that conferences and inquiries by employers and employees in some industries may produce some good result. The blind alley occupations are another source of unemployment. Rome scheme of unemployment insurance would no doubt he helpful, hut it requires to he a sound scheme. It is also suggested by the Committee that more adequate statistics of unemployment should be provided and viiere is the story of cooperation. and co-ordination between employers and employees. fn respect lo the latter, there is great need for a close co-nVdimil ion between the value of assisted immigration and the nbsorntion capacity of the country for tile time being. It is suggested that permanent consultation between the Public Works. Labour. Immigration and Statistical Depart incuts, and I'requenttomiiiuiiicalion with the High Commissioner should be capable of bringing about such an adjustment between the demand for and the supply of labour in the Dominion. The above arc suggested as remedies and palliatives, hut they are of little value as such.