THE WAGE CUT

Hokitika Guardian, 1 June 1931, Page 5

THE WAGE CUT

MR McCOMBS’ COMMENT. i . .! ■ (By Telegraph—Per Press Association) CHRISTCHURCH; Jung l. /r f Commenting on the wnges out, ;Mr J. McCoipbs, M.P,, states < must i say, . I am grievously disappointed to find that the Court has slavishly followed fhe lead given by the Government. It may be that'an .appeal will be lodged. The decision lias been given under an entirely new act which does not, connect up with-the I. C and A, act in the usual way that amending acts do. The usual formula is that the amending act shall; be read ; together with and form part of the principal formula is miss- ’ mg’ m' the' finance" Act,""1931, and it ■seams to me that the decisions under the Finance Act are not governed by the provisions of the T. C. and A. Mb which forbids an appeal. The two acts seem to be in conflict, Legal advica is. being fought from two. eminent counsels in Wellington and one in i Auckland.” , . ■ MR MITCHELL INTERVIEWED ' WELLINGTON, June 1. Interviewed this morning,. Mr A. C. ’Mitchell, President of the New Zealand Employers’ Federation said that ~ he ■ had Veen convinced, for seyerqU, months past that in order to meet the difficulties he.ng experienced at present ny all. .. , 5j sections of employers, an adjustment of wages and costs of manufacture and distribution in all Commodities within New Zealand was inevitable. “Much as we all dislikethe thought of reducing wages, there is no alternative to the reduction of wage rates, other than increasing unemployment,’’ he said. “1 therefore am pleased to note that the Court enabled a substantial reduction to be made.” A meeting of the Advisory Board of the Federation was held this morning to consider the Court’s order and the view strongly expressed by every mem-; ; ber was that a grave responsibility N ' now rested upon every section of the ; employers in the Dominion to put the order in effect and pass on to the public the cumulative effect of ; the reduction in wage s by the way of reduced costs. If this be done . there mil be a marked fall in the cost of' living and an increased turnover in trade, which will lead to increased employment and a gradual return to satisfactory trading conditions on a low level, and on internal prices in accordance with prices for export products. The Board is at once communicating with all Employers Associations and affiliated organisations of employers urging them as strongly as possible that it is their duty and in fact a matter of honour in view of the representatives made to the Court on their behalf that all employers should carry the whole Court’s recommendations into full effect. It is to be particularly emphasised that in the case ol sheltered industries, which to-day are still making a profit, it will be most unfair to other industries in a less fortunate position of the chain of effect in the application of the cost of reductions is held up by their refusal to reduce wages and pass on the saving effected to the consumer. “The whole of influence of the Federation,” Mr Mitchell concluded, “would be used to ensure all employers would support the action of the Prime Minister - and play their part in the necessary adjustment to meet the economic situation, of which the present Arbitration Court order formed the second Stage.