WAGES INCREASE

Waikato Times, Volume 127, Issue 21190, 13 August 1940, Page 6

WAGES INCREASE

VIEW OF MANUFACTURERS DIFFICULTIES DISREGARDED FINANCIAL INVOLVEMENT (By Telegraph.—Press Association) DUNEDIN, Tuesday The New Zealand Manufacturers’ Federation issued today a statement on the 5 per cent wage increase ordered by the Court of Arbitration. The Federation holds that the Court took an over-optimistic view of the prospects of the coming export season and the expansion of factory production. The Court dismissed lightly the overseas shipping difficulties, according to the Federation, though it must be aware that Britain is having such difficulty in storing her own food that rationing may be diminished. Secondly, since she no longer needs to worry about France’s food, she probably will obtain supplies from countries nearer her than New Zealand. As for increased factory production, the Court must be aware of the very great difficulties experienced in procuring licenses to import sufficient raw materials to carry on, even on the present basis, apart altogether from securing goods from overseas after a license is granted. Embarrassment In Finance

The statement concludes with an expression of the belief that the step will cause embarrassment to those responsible for the country’s finance. “If the increase will guarantee increased production, the usual cost of living spiral might not eventuate, but the Court order carried no such guarantee. The Federation only hopes that workers will voluntarily respond to the Government’s and Court’s appeal for increased production.”