COST OF LIVING BONUS

Southland Times, Issue 24232, 16 September 1940, Page 4

COST OF LIVING BONUS

LOWER-PAID CIVIL SERVANTS ALLOWANCE TO BE RETROSPECTIVE (United Press Association) WELLINGTON, September 15. The decision of the Government to grant a cost of living allowance to the lower-paid State employees was announced tonight by the Minister of Finance, the Hon. W. Nash. The allowance will be retrospective to August 12, the date of the operation of the general order of the Arbitration Court increasing the wages of

workers under awards and industrial agreements. No deduction will be made for superannuation, but the allowance will be subject to taxation in the usual way.

Mr Nash said that following the recent Arbitration Court pronouncement the Government had considered representations made by the various staff organizations representative of the State employees for a cost of living allowance. “The Government has reached the conclusion that in equity some allowance should be granted to the lowerpaid State employees,” said Mr Nash. “The allowance is being given to offset the rise in the cost of living and this cost presses most heavily upon those in receipt of the lowest rates of salary or wages. It has therefore been decided, in lieu of granting a straight-out 5 per cent, increase in pay, to distribute a similar amount of money in the form of a flat allowance of five shillings a week or £l3 a year to all State employees 18 years of age and over in receipt of salaries not exceeding £335 a year or its equivalent in weekly wages or hourly rates. Juniors under 18 years of age, if living away from home, will receive an allowance of £6/10/- a year and if living at home £3/5/- a year. “In the case of officers whose salaries or wages amount to slightly more than £335 the allowance will abate by £1 for every £3 or part of £3 of salary in excess of £335. The cost of this allowance in the aggregate will be slightly in excess of the cost of granting a straightout 5 per cent, increase in the salaries and wages concerned. This decision will apply to all employees of the general public service.” Mr Nash said that investigations were proceeding to enable the Government to determine the procedure necessary to adjust anomalies which .might arise in connection with the allowances.

PROMISE OF HIGHER WAGES MEN ON PUBLIC WORKS (Special to The Times) WELLINGTON, September 14. Definite assurances are reported to have been given by the Government that the 5 per cent, increase in wages will be given to men on public works. The Labour movement’s official organ states that the head office of the New Zealand Workers’ Union is receiving daily numerous letters asking if the 5 per cent, increase applies to men on public works, main highways, road maintenance works, lands and survey, State forests. The national president, Mr R. Eddy, and the general secretary, Mr A. Cook, have been in close consultation with the Prime Minister, the Rt. Hon. P. Fraser, the Minister of Finance, the Hon. W. Nash, and the Minister of Public Works, the Hon. R. Semple, and definite assurances have been given that this increase will be granted. Mr Nash is working out a scheme for payment. This scheme has not yet been finalized, but it can be expected within the next few days. RAILWAY INCREASES ANNOUNCED (United Press Association) AUCKLAND, September 15. Increases for salaried officers of the Railway Department to meet the increased cost of living were announced at the annual reunion of the Auckland branch of the Railway Officers Institute on Saturday night. The chairman, Mr J. W. Shepherd, said he had received a telegram from I the Dominion secretary stating that an increase of £3/5/- per annum had been authorized for officers under 18 years of age who were employed near their homes and those in the same class living away from home would receive an increase of £6/10/-.

Officers over 18 years in receipt of a salary up to £335 were to receive an additional £l3 and an increase of £27 a year was to be granted to those with salaries of £335. All increases were to take effect from August 12.