RETRENCHMENT AND WAGES.

Shannon News, 3 February 1922, Page 3

RETRENCHMENT AND WAGES.

N (To the Editor.) Sir,—The section of county employees affected by the recent modest, but nevertheless unwelcome, reduction in wages is perhaps to be congratulated on the philosophical manner in which the sacrifice has been met. It does not ■-follow,, however, that the whole of the ratepayers acquiesce in the precedent thus established in this favoured portion of the Dominion. So long as he can be advantageously employed, so long should the worker be worthy of an average living wage. Economical administration need < not necessarily be regarded as synonymous with

wage reduction. That ibis point of view is shared by students of political economy subscribing to various schools of thought is a significant fact, and perusal of the enclosed clipping from the leading columns.of the Wairarapa Age, a Reform newspaper, should prove illuminating as concerning employing bodies and individuals: “It is something of a reflection on the methods of administration in Government and big industrial concerns that when a slump occurs in trade and commerce the first step taken is to reduce staffs and severely cut the salaries of those kept on. Surely there is a bankruptcy of resource, of initiative, and of courage in such a wholesale surrender to adverse conditions. It is recorded that' when the great depression occurred in the motor trade in America two, years ago, and many prominent firms either closed their doors or dispensed with thousands of hands, Mr Henry Ford borrowed 20,000,000 dollars and embarked on a more extensive motor building campaign than even his great organisation had ever before contemplated. And it paid! And though there may be few captains of industry in New Zealand with the business capacity of Mr Ford—and none at all who could go into the marts of commerce and negotiate a loan ol £4,000,000 —there are hundreds of shrewd business men who should know that the line of least resistance is seldom the path that

should be followed in business operations. When a slump is general there must be a basic cause, and a policy ,of panic does not- help at all in the discovery of that cause. The practice, unfortunately, is to ignore possible causes and to deal only with effects—a disastrous negation of political economy. It is therefore refreshing to find that some} employers of labour are beginning to study the question from a practical viewpoint. This was evident during a discussion at a meeting of the Christchurch Allied Building Trades Association this week, on ire question of the cost of living. “I’m not an advocate of cutting wages, but I am an advocate of asking efficiency from labour," said Mr W. H. Windsor, the retiring president. ‘‘We all.know that (hiring the past few years we have not had efficiency from the bulk of tbe men. We must- admit, however, that it is as much our fault as theirs. We have got a bit lax in our methods, n ■ doubt, though conditions have forced that on to us in some measure. However, the country is in such a sta'e at present that we must do something to equalise things. Truthfully, the only way we can, if it is possible, assist in lowering the cost of living as far as the building trade is concerned, is to reduce our profits. We rely, of course, on the importer, the merchant, and labour, and if they don’t cut their prices, we can’t do much. However, I think the public should know that we have alreaiy been cutting our costs down to the lowest possible minimum. We can’s possibly ask labour to cut a slice tut of their living if we don't do something oqrselves.’ ” —I am, etc., A. C. HOLMS.