COST OF LIVING.

Taranaki Daily News, 9 October 1922, Page 5

COST OF LIVING.

THE COURT’S PRONOUNCEMENT. FALL OF THREE SHILLINGS. As briefly reported on Saturday, the Court of Arbitration on Friday made its second pronouncement, indicating the adjustment in the wage rate consequent on the further fall in the cost of living. The amount of the reduction decided upon is 3s per week in the male adult wage, making a total of 8s since April last. A special sitting of the Court will be held next month to hear argument. “Measured in wages, the cost of living has fallen during the past half-year to an extent that would reduce the adult wage by 3s per week. If the principle adopted in former wage revisions is followed, the corresponding reductions for adult females and juniors are Is Gd and Is per week respectively.” In these I terms Mr. Justice Frazer indicated the | second pronouncement of the Court of . Arbitration on the cost of living and i the wage rate. The initial pronounee- | nient, delivered on April 5 last, reduced ' the adult male wage by ss, and the ' female and junior rate by 2s 6d and Is 6d respectively. “The Court, in pursurance of the provisions of the Industrial, Conciliation and Arbitration Amendment Act, 192122, has investigated the movement in the cost of living between the sixmonthly period ended March 31, 1922, and the six-monthly period ended September 30, 1922. “Our investigation has covered the whole field of the cost of living. The I items comprising the different groups and sub-groups,’ the weighting allotted to each item, sub-group and group, and the method of treatment were the same as for the former investigation, ana were described in detail in our pronouncement of April 5 last. EFFECT OF MARKET ON WAGES. “As on other occasions, the Court has worked on the principle of the sixmonthly moving average—that is, the average increase or decrease in the cost of living for the past six months is taken as the index of the increase or reduction in wages for the ensuing six months. As has been pointed out in the past this system operates somewhat against the workers on a rising market, hut is in their favour on a falling market. In the former case their wages keep falling behind the increasing cost of living, though this is usually offset by greater regularity of employment, more overtime, and a tendency on the part of the employers to pay more than award wages to a larger percentage of their employees; while in the latter case, they start their half-year with wages some points ahead of the current cost of living, and the advantage increases month by month.

“With the exception of rent, all the groups and sub-groups show 7 a decrease from the figures of the preceding halfyear. Crockery heads the list with a drop of 16.72 per cent., followed closely by household ironmongery with 15.06 per cent. Fuel and light have fallen by 11.55 per cent., furnishings by 6.8 S per cent., clothing and drapery by 6.74 per cent., food by 3.97 per cent., footwear by 2.98 per cent., newspapers and periodicals by 2.20 per cent., and train and tram fares by 0.33 per cent. Rent shows an increase of 2.06 per cent. “Giving each grouft and sub-group its proper weighting. we find that all groups combined show a decrease of 3.73 per cent, for the six months. Compared with the July. 1914, figures the average figures for the past six months are slightly under 60 per cent, above the standard, as against 67 per cent, for the preceding half-year. NOT A COURT ORDER. “This pronouncement is not a judgment or order of the Court, but is simply a statement of the movement in the cost of living as represented in wages. We will hold a sitting in Wellington during November, at which we will hear the representatives of the employers and the workers, if they desire to be heard, in regard to the other considerations that should weigh with the Court in determining whether wages are. to be reduced, and, if so, by what amount. The date of the sitting will be announced as soon as we are in a position to determine the approximate duration of the forthcoming Auckland session. The reductions are as follows: October: Adult males 3s per week: adult females Is Gd-per week; juniors Is per week. April last: Adult males 5s per week; adult females 2s Gd per week; juniors Is Gd per week.