WAGE REDUCTIONS

Hokitika Guardian, 24 April 1931, Page 8

WAGE REDUCTIONS

BUSINESS FIRMS’ ACTIONS. 33 1-3 PER CENT. “CUT” FOR SOME DIRECTORS. In urging that all business organisations should reduce salaries and wages, the “Mercantile Gazette” says: “In some cases a curtailment in salaries Was made as far hack as September last, the rates varying all Lire way from .) per cent, in the case of the. lower-paid employees, to 20 pm- cent, wlier.e directors and others were receiving substantial salaries. In Miiiie instances too, a policy oj hn\ mg the employees take one week off in four, one in six, or one in ten, has been adopted. This really is equivalent to a reduction in pay although, of course, the employee has the time off in which perhaps he can use his labour in some other direction. In the case of one large financial institution a 10 per cent, cut in salaries was made as from February I- I’ l this instance the directors agreed on a .33 1-3 per cent. cut. “With several motor houses the salary reductions have ranged from 10 per cent, to 20 per cent., the cut having been put into effect towards ilie end of last year with at least two companies. There seems to have been no concerted action on the part ol the warehouses, but from inquiries made it would appear that reductions in salaries took place before Christmas in some, while others contemplate making a definite move as soon as the Government reduction comes into force.

“During the last few weeks, however it would appear tliat in all lines of business, those -in charge hav o deemed it wise to make some effort to eu'rtail ovierhoad expenses, ami it l inks as if the rest of the commercial community will fall into line when the Clovernmeiit proposals become effective.”