THE BREWERS' PROFIT ON LABOR.

Maoriland Worker, Volume 2, Issue 29, 22 September 1911, Page 5

THE BREWERS' PROFIT ON LABOR.

OUT OF ALL PROPORTION. In his address to and workers, Mr. Nicliolls said in part: — On page 414 and the succeeding pages of the New Zealand Year Book for 1909 there is a table that provides rnudh information for those who like to look for it. It shows the value of the materials used in the various industries, the amount of wages paid, and the total value of the products of each industry. From this table I will give you some examples : In "the following calculations I have styled the cost of materials and the wages paid

'■the cost," and the balance between that, sum and the value of the products "the profit." There is, howevery of course, to be added to the cost the rents or interest charges and de-, p'reciation of premises and plant, and also business losses. While this, however, will reduce the profit as shown, it will not materially affect the proportions as between the various trades, a's these charges fall on all alike. I think it will be conceded thai, in losses arid in depreciation of plant and interest on buildings, etc., the brewer has less to pay than those he is compared with, so that he gains a still further advantage by not having the complete figures to £o on.

The profit on brewing is here shown to be more than three times the amount of wages paid. This, however, is on beer a.t Is 6d per gallon. The beer averages.out to the retailer fully 4s 6d per gallon. The secretary of a Dunedin brewery stated in a court case here that retail profit on beer wa.s fully 200 per cent., which agrees with the above. This, then, means that for every £20 spent by the worker in beer only about £1 goes to the wage.earner ; in, the brewing industry. Now let* us, see how this compares with some 'of the leading industries. '

The apparent profit is here less than one-third of the total paid in wages — or, in other words, an. a wage-sheet nearly twice as large a,s the breweries, about one-sixth of the profit is shown; i.e., tjhe breweries (even at the'wholesale price of Is 6d per gallon) make 12 times as much profit on the labor they employ as do the engineers. '.—Furniture and Cabinetmaking. — Value -materials used ...£157,484 Wages paid .... ... ... 134,584 Total .value of products ... 292,068 Value of products (mostly .retail) 328,185. Cost of, products 292,068 Profit ... ... ... £36,117 Here, , again, the apparent profit is not much more than one-fourth of the wages paid, and most of the furniture is supplied by the makers direct to the public, hence the value given will be the ! retail value. Compared with furniture workers, brewers make about 12 times as much profit out of labor at wholesale rates, and at retail rates, the true comparison, the workers spend £20 in beer to secure £1 in wages to the worker, while about £1 7s 6d spent in furniture secures £1 in wages to the worker. .These examples could be extended indefinitely, but I will just summarise a few:— " : : . i . Tailoring—Profit slightly .more than half -wages paid. ;. Dressnialdng—Profit about one-third wages. Clothing" and -waterproof, less than half.- ' Coachbuilding, less than half. Printing and bookbinding, less than total of wa.ges. Tinware factories, little more than half. On all the Industries lumped together, excluding brewing, the profit on labor, is 125 per cent., less business losses, rent and depreciation. . On breweries it is 320 per cent, on wholesale prices, and, seeing that nearly all the houses are "tied," the brewers get a large part of the retail profits also. In Dunedin there is a large brewery with a capitalisation of £60,000 almost entirely owned by three men. Common report has it that these three drew £75,000 profit between them last year. Surely, if ever there was., a. case where the Arbitration Court could double the wages of emplbjjeeS without hardship the brewery business supplies it.

.: —Brewers. — Value of material used ... £187,799 'Wages paid .... ..... ... 92,308 : - Cost :of products ... ... 280,107 Value of products (wholesale) 572,579 Less cost of products ... 280,107 Profit ....... .... ... £292,472

—Engineering Worl Value ; materials used Wages paid ... - * ... •Cast of products ... ■ksv — ... £223,365 ... 167,996 ... 391,361 Value of products ... Cost of products ... Profit .-.. ... ... ... 437,036 ... 391,361 ... £45,675