PAYMENT OF LABOUR

Waikato Times, Volume 119, Issue 19889, 19 May 1936, Page 3

PAYMENT OF LABOUR

RESTRICTED BY COSTS. EMPLOYER’S POINT OF VIEW. AUCKLAND, Tuesday. A reply to the contention that only a small portion of the wealth created by labour is paid to the worker was made by Mr J. S. Dawes, president of the Auckland Employers’ Association, in a statement. “ Employers will require now to set out clearly the earning power of workers in the various industries to enable the Arbitration Court to decide, as it is bound to do, the ability of each industry to pay the increases which the workers at the instigation of the Government are demanding,” said Mr Dawes. “If these demands exceed earning power, then the onus is on the Government of providing, or at least sanctioning, increases in prices to enable the extra -costs to be met.

“This is not a time when misleading statements should be allowed to go unchallenged. It has been the policy of labour unionists to contend that only a small portion of the wealth created by labour is paid to the worker, and that therefore wages can be raised without Inflicting injury on industry, but merely by curtailing the profits made by employers. Employers in tbe -past, have ignored such statements, knowing they were based on insufficient knowledge of actual industrial -conditions. Knowledge of laming*. “ But now, -when apparently the whole industrial policy of the Government is based on the assumption that wages can be raised to any level and production -costs increased without raising prices or depreciating currency, the actual facts must be -clearly set out.”

After refuting figures quoted by Mr A. S. Richards, M.P., regarding the operations of -boot manufacturers Mr Dawes said no -coercion by the Government, and no award by the Arbitration Court, could compel employers to pay more wages than workers oould earn. A worker In a factory oould not possibly know what his actual earnings were, and his union secretary could not enlighten him. Only the employer, or his manager after examining the weekly, monthly, or half-yearly returns, -could ascertain the true position, though a good foreman could generally tell fairly quickly whether any worker was earning his wage. I-f he were not the employei must cease to employ him, as he has no fund beyond the earnings of his business to make up the deficiency. Of course, he added; with Government and local body employees the case was different, as taxes and rates were available to make up the shortage.