WELLINGTON NEWS

Hokitika Guardian, 19 January 1931, Page 3

WELLINGTON NEWS

QUEER MENTALITY

(Special Correspondent).

It is difficult to understand the mentality of labour unions and their otfic-

ials. At a time when the spending power of the community is restricted and its seources of income impaired, that difficult moment is chosen by some unions to seek the aid of the Arbitration Court for ail increase in wages and betterment.on conditions, involving the Treasury Board in 'an increase in expenditure of about £B,QUO which cannot be met. The nation as a whole has not tbe funds with which to pay high wages, high taxation and high rates of interest.

A mere statement like* this carries no weight, so it is best to give concrete evidence regarding the position. The working capital of the Dominion is concentrated in the six trading banks operating here, and their averages were issued recently as required by law am*, published in the Government Gazette. The capital from which wages and salaries can lie paid is shown in the free deposits or current account balances. This item in the bank returns, together with the bank notes in circulation, show the amount available for spending in wages, salaries, goods and services. In the quarter under review these two- items aggregated £24,731,227, as compared with £‘29,273,016 in the December quarter of 1929, so that in the course of 12 months the spending power of the people of the Dominion has contracted by £4,541,789, or an average of £3 per head for every man, woman and child in New Zealand. How is ft possible for a community thus impoverished to pay higher wages ? The truth is that the country cannot afford the award wages now current, and that is the reason why there is a persistent demand for a revision or readjustment of wages and salaries. The economics of Socialists who rule the labour unions, and, therefore, the workers, are 'faulty in tbe extreme. It is their belief that wage payment should' be based on the cost of living, that is on the cost of consumption, which is obviously fallacy. Wages must be based on production. Then again ttie Socialists desire shorter hours of work, say 45 hours with wages based on 43 hours, in effect they demand three hours’ wages without work, and no country can stand for that.

Unemployment, instead of diminish ing, is increasing, and we cannot accept the complaisant explanation that the increase in unemployment is due mainly to world depression which will pass away, or that other comforting explanation that our conditions- are not so serious as those of Australia. Relatively our conditions are just as serious and if we continue to drift the burden will become intolerable. The drift in Australia, if not speedily arrested, will lead to lawlessness and anarchy, of which evidence has already been given.

The present distressing period calls primarily for elasticity and adaptability an dyet the Socialists insist upon rigidity in the wage scale. The Statistical Organisation of the League of Nations, the only body capable of obtaining that formation required for an adequate appreciation of the whole course of world trade, recently made an investigation and Mr A. Lovedav, an English man, and the head of the Economic and intelligence Service of the League, mas examined the League’s results through British eyes. Mr Loveday has dealt in detail with the various reasons which have been advanced at different times as explaining Britain’s slow post-war progress. He condemns the policy of rigidity. The policy of organised labour has been to maintain money wages at a level which has depended on the bargaining powers of those concerned. Productivity per workers having failed to increase to an extent proportionate with current wage levels ,labour has become dearer than before the war. The conditions in Australia and New Zealand are somewhat similar. Wage rigidity exists and is enforced by law, and yet to meet the present position we must adapt ourselves to the requirements of the world with all the adjustments that this entails. Costs all round must be reduced, and the shouting of slogans and catch phrases will hot help. It is unjust and unfair that one section of the community should be sheltered in the enjoyment of a high wage, while'another section is minus the necessaries of life. Equality of sacrifice is essential.