BONUS TO WORKERS.

Taranaki Daily News, 17 May 1921, Page 8

BONUS TO WORKERS.

APPLICATIONS MAY BE FILED.

COURT’S DECISION FINAL.

By Telegraph—Press Association. Wellington, Last Night. In the Arbitration Court to-day, Mr. Barter, representing the iron workers of Auckland, said he had come to Wellington specially to ask if unions were going to be allowed to file applications*for a bonus and produce evidence to show that the industry could stand it. “I think,” said the President (Mr. Justice Frazer), in reply, “if you will read tjie concluding paragraph of our pronouncement you will see we say it is of a general nature, and is issued for the guidance of parties. It is not intended to deprive anyone of the right to file an application, but the Court will not depart from its pronouncement unless there is some special reason.”

VIEW IN LABOR CIRCLES.

NEW SYSTEM OPPOSED.

Wellington, Last Night. Considerable indignation is expressed in official Labor circles at the decision of the Arbitration Court to introduce a new system of stabilising wages instead of granting a bonus to cover the cost of living increase during the past six months. No official statement has been made on the matter, but an official made no effort to conceal the fact that he was not at all in agreement with the decision. A conference of secretaries of trades unions, called by Mr. Kennedy (President of the Trades and Labor Council, was held this afternoon, and af- . ter a discussion it was resolved to urge the Trades and Labor Council to discuss the bonus announcement at its next meeting. Since the conference was not representative, it was unable to arrive at a definite resolution or to instruct the Council to take specific action.

ARBITRATION COURT’S DECISION.

TO STABILISE WAGES.

IMPORTANT NEW DEPARTURE.

On Saturday morning the Arbitration Court made its pronouncement on the cost of living bonus question for the period commencing May 1, 1921. The additional bonus representing the los; of purchasing power for the past six months, is computed to be ss, but in pursuance of its initiation of a. scheme for the stabilisation of wages—outlined in the pronouncement—the Court decided that instead of this sum being paid out during the current six months, it should be “set off against the inevitable reduction that the September figures will show.” By this means, states the Court, wages will be stabilised until April 30, 1922. Appended is the pronouncement:

STATISTICIAN’S FIGURES.

“The Court has considered the question of a cost of living bonus for the period commencing May 1, 1921. As on former occasions, we have called on the Government Statistician to supply data in respect of the movement in retail prices during the six-monthly period from October 1, 1920, to March 31, 1921. The Court, in ■ dealing with the figures submitted, has adhered to the principle adopted in the past of working on a six-monthly moving average. On this basis, a sum of 3s per week is required to meet the increase shown in the prices. To this has to be added the sum of 2s, which was deducted from the anlount of the) last bonus to discharge a past over-payment. The total additional bonus, calculated in accordance with the system laid down by the Court, is, therefore, 5s per week. We desire to make it clear, in passing, that the figures supplied to us by the Government Statistician do not indicate with absolute accuracy the movement in the cost of living. The movement in retail prices is not uniform. All commodities do not move at the same rate or in the same direction, a circumstance which has a bearing on their relatives rates of consumption, though it does not necessarily affect the ‘standard of living.’ This matter is dealt with in greater detail by the Government Statistician in the preface to the Monthly Abstract of Statistics for April, 1921.

“The Court has decided, however, that in view of the fact that three former bonuses have been calculated on the basis of the movement in retail prices, it would be undesirable at this stage to introduce a modified system of calculating the increase in the cost of living. In any event, we have no reason to think that any great difference in the result would be shown for the period now under review.

MOVEMENT IN RETAIL PRICES.

“It is of interest to note the recent movements in retail prices in the three food groups. In September, 1920, the last month of the previous six-monthly base period, the increase for the month over the prices for July, 1914, was 72.80 per cent. The percentage increase rose to 78.97 in December, but dropped each month thereafter until March, 1921, when the increase was only 69.16 per cent., or 3.64 per cent, less' than in September, 1920, and 9.81 per cent, less than in December, 1920. When the estimates for clothing and miscellaneous items are taken into account, and combined with their proper weighting, with the figures for food, rent, fuel, and light, the reduction is still more marked. The advance figures for April, which by the courtesy of the Government Statistician we were enabled to peruse, show that, notwithstanding an increase in the price of bread and an unusually high price ruling temporarily for eggs, a further has taken place. FINANCIAL AND ECONOMIC POSITION.

“We have now to consider the general financial and economic position of the industries of the Dominion. We do not think it is necessary to discuss this matter in detail, for the present financial stringency is of so pronounced a nature that its rpswlts are apparent to everybody. The Court has given very full careful consideration to the question whether, in view of the condl(;jpn of trade and industry at the present time, it should declare any bonus at ail. We ar,e satisfied, from the information we have collected, that it is I no longer possible for the employers pf i the Dominion to pay increased wages, j and that the granting of an increased J bonus W the Cguft would bring about

a marked increase in unemployment and tend to check the reduction in the cost of living. On the other hand, it must not be overlooked that, while the cost of living was increasing, the effect of basing the Court's calculations on a sixmonthly moving average was to delay for several months the increase due to the workers, and the Court must now give due weight to the representations that they made in the past on this aspect of he matter. To deny them any measure of consideration at this time would be inequitable.

STABILISATION OF WAGES.

“The Court has approached the question with the gravest concern, and has availed itself of all the information obtainable, and has considered the matter fully and at length. It has come to the conclusion that from a national viewpoint, as well as in the interests of employers and workers alike, a system oi stabilisation of wages is highly desirable at the present time. The °fact that the drop xni prices in the fooi groups since January has been sufficiently marked to bring the figures for April (the first month of the current six-monthly period) several points belo\v the figures for September (the last month of the period in respect of which the last bonus was calculated) is an indication that, unless anything uriforseen occurs, the six-monthly moving average to be ascertained at the end of the current period will represent a decrease at least equal to and probably greater than the increases for the last -/vvo periods. The world’s markets show reductions in the prices of all classes of clothing materials, and numerous items in the miscellaneous class are falling in price. Butter, which was largely responsible for the increase in the October figures, cannot maintain its present price -for more than a limited period, and a fall in butter will react on dairy produce generally, and very materially reduce the cost of living; in fact, it will probably suffice, in itself, to equalise the averages for the periods.

GIST OF THE PRONOUNCEMENT.

- “These considerations have enabled the Court to decide to introduce a scheme of stabilisation. Living is now cheaper than it was at the commencement of the last six*-monthly period, and the market, which was then rising, is now falling. The workers accordingly will, during the current period, have more purchasing power for the same money than they had during the last period, and, as prices continue to fall, their purchasing power will continue to increase. The Court is of the opinion that the workers should not he deprived of the extra- 5s per week, which represents their loss of purchasing power for the past six months, but considers that, instead of the sum bejng paid during the current six months, it should be set off against the inevitable reduction that the September figures will show. This will have the effect of stabilising wages until April 30, 1922, and we believe that both employers and workers will derive more benefit from a stabilisation on the basis of the present ratios than from an increase in May followed by a greater reduction in November Under such a scheme the workers, whose cost of living has in fact been reduced, will benefit by having their wages secured, on a falling market, for twelve months instead of six, and the employers, who chnnot now pay higher wages will benefit by a stabilisation of labor costs.

TO PREVENT UNEMPLOYMENT

“In deciding on this course the Court, though working independently and on different principles, has arrived at a policy that does not differ materially from that of the Government—the largest employer of labor in the Dominion —in regard to the public servants of the Dominion. The Government has indicated ifs intention of withholding, and -ifs inability to pay any further cost of living increases to salaries, but at the same time has stated that it will not reduce salaries or dismiss public, servants so long as it is possible to carry on as at present. The Imperial Parliament in lots passed special legislation for the purpose of stabilising wages over a period, and subsequently renewed the legislation. The Court cannot, of course, prevent unemployment, but, by stabilising wages 6h the basis of the present rates, it hopes to minimise unemployment during the earning months. “This pronouncement is of a general

nature, and is issued for the information and guidance of parties. It will not be subject to review until after April 30, 1922, except as hereinafter mentioned. It is not intended to take away the right of either party to an ..award or industrial agreement to make an application to the Court under the existing legislation, but the Court will require proof of extraordinary circumstances before departing from the prin. ciples herein laid down, unless the parties agree to a modification.