WAGE QUESTION

Rotorua Morning Post, Volume 2, Issue 564, 22 June 1933, Page 5

WAGE QUESTION

REDUCING STAFF " DO WAGES CUTS DEFEAT THEIR OWN ENDS? . VIEWS OF MAYOR The contention by the mayor ( Mr. T.. Jackson), at last evening's meeting of the Rotorua Borough Council that the idea of inflicting "cuts" in salaries and wages was the worst form of false economy and was largely responsible for the present stagnation of business in New Zealand, through the reduction of the spending power of the people, did not meet with the apprQval of the council though it secured a measure of support, The matter arose through a recommendation of the works committee that relief workers' wages be subsidised and while this principle was' affirmed, the methods hy which the council is to find the necessary funds revealed a difference of opinion. . The result of the discussion on the whole question was the setting up of a committee to inquire into means of effecting reduction in the salaries of the whole of the employees of the borough council and' also to enquire into the possibilities of dispensing 'with the serviees of some of the higher salaried officials jiltogether. After the cpuncil had agreed to the subsidising of relief workers' wages, Cr. E. T. Johnson moved that a committee be set up to go into the question of economising iij the salaries and wages paid by .the council and also to ascertain whether higher paid officials could not be dispensed with. Cr. G. Steele seconded. Cr. F. Goodson said that he. failed to see where the Works Committee had even tried to effeet any eeonomies at all. There were 13 men and four of these did no manual work but looked after the others.

Economies Effected The mayor said that Cr. Goodson was incorrect in his remarks; only the engineer and the f oreman did not actually do manual work. He also wished to correct any impression that there had been no economies effected at all. During the past two years the higher paid officers had all had a ten per cent. cut and those getting under £280 per annum a 5 per cent. cut. He had always been and still was strongly opposed to any reduction in wages for a reduction in wages was the most futile and imbecile move which had ever been put into force. The cuts in wages introdueed hy the Governme-nt had beeh responsible to an enormous extent for the position in which the country found itself to-day. In his opinion, anything which could be done to increase the wages paid would have an enormous effe-ct upon business and he hoped that the council would not fall into the grievous mistakes of other boroughs and firms which had foolishly cut wages and thus stultified the very ideas they had set out to follow. There were, he was glad to.say, other boroughs which were even increasing wages se-eing the absolute foolishness of their former action. Absolutely Ridiculous Cr. Banks claimed that the mayor's idea of keeping wages as they were was absolutely ridiculous. By remaining at the same level wages were actually raised owing to the decrease in living expenses. It was a big question — one of supply and demand — • Cr. Steele: And one that we can't thrash out at the council table at this time of night. Cr. Coleman mentioned that the council employees, in addition to the 10 per cent. cut, had suffered a 5 per cent. cut through the wages tax, and would soon get a 5 per cent. saies tax, the effects of which was not yet felt in New Zealand. Cr. Banks: Well, when it is felt, let wages go up. The Mayor : They'll have to. Cr. Johnson said that he did not agree with the Mayor's vie-w. The Arbitration Courts simply protected a few and compelled the unfortunate unemployed to pay more for his food and clothing. If the ordinary employee could only live on £4 or £5 per week as the council's employees were, how was the man on £1 6s getting on? The Mayor : I'd like to see them all getting £4 or £5. Cr. Johnson: Quite so, hut I want to talce it from the few favoured ones 'and give it to the many. The motion was carried and the committee set up consisting of the Mayor (chairman), Crs. Coleman, Goodson and Johnson.