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MELBOURNE, Friday.—About 250,000 workers in the
metal trades industry were to-day awarded a 28 per cent in
crease on their current maigins, payable from the first full
pay period in December.
Mr, Justice Kirby, President of the Commonwealth Con
ciliation and Arbitration Commission^ said the judgment
should be used as a basis for, conciliation in settling margins ^
claims by other workers including professional and *white
*nttar" groups.
. While spokesmen for
employers' organisa-i
tioris expressed fears'
that the increases would ;
add to costs in indus
try and hamper export
business, union repre-.
sentatives found die in
creases "disappointing." ,
The "white collar" cases at
present before the Commis
n'on affect about 750,000
such employees.
Under the ruling to-day
metal trades industry workers
will receive pay rises ranging
from 61' a week for process
workers to 35/. for a duster
who runs , the risk of lead
poisoning when making baths
and stoves.
The process worker will
now get 28/. over the basic
wage and the duster £8.
Other examples given by
the Commissioner were:
Forger, a 29/6 rise (total
margin £6/14/6); fitter 21/
(£4/16/-); machinist second
class, 14/- (£3/4/-).
Unanimous
I The three members of the
ff- Commission were unanimous
I in their decision. They made
I no ruling on rates for female
pi employees and apprentioes
| but said that if the parties
| could reach agreement, they
i could ask Senior Commis
| gioner Chambers to. make a
§"» ruling.
I The ."white-collar" groups
I are asking for a 78 per cent
I Interim marginal rise on cur
I rent margins before the Com
| mission hears the lengthy
fmain case for increases
equivalent to five times the
pre-war margins.
|| _ Mr. Justice suggested "am
| icable" conferences between
fif the parties with a view of
|$ partial or total settlement of
1 jhe claims for interim rises.
, In giving reasons for juag
ment, the. Commission said
"In arriving at the rates wt
have: taken into account the
fact that there has been •
significant fall in the real
value of current margin;
since they were fixed."
The unions had presented
evidence of oyer-award pay
ments to show the current
market value of work and
the capacity of employers tc
pay. ... .
However it was clear that
some, if not most, of the
over-award payments were
obtained : through pressure
and in some cases through
industrial action. >
Prosperity
It thought It unwise to rely
too heavily on over-award
payments In assessing a mar
ginal rate. However, if mar
ginal increases could not be
granted in times of economic
prosperity such, as now,, it
was difficult . to imagine
when they could be granted.
The Commission was fully
conscious of the desirability
of attempting to maintair
the present economic stabil
ity. The Commission was
also conscious of the desir
ability of ensuring wage, jus
tice to employees.
"We have looked at the
increases which we propose
to grant and we do not con
sider they are likely to affect
stability adversely affecting
the economy," the Commis
sion stated.'
Inflationary
In Canberra the Minister
for Labour, Mr. McMahon
said in economic terms the
decision and the recent basic
wage increase ot 15/- must
be taken, together. They were
botfc part of the total wages
bill of the nation.
Some spreading of the in
creases awarded by the mar•<
gins decision was obviously
to be expected.
/ While it was extremely
difficult to measure the ulti
mate cost, there was good
reason for thinking that in
the final result the decision
would add at least as much
as the basic wage decision
to the total wages bill—£65
million.
Hie percentage increase in
the total basic wage and
margins increases was well
ahead of the increase that
had occurred in the C Series
Index.
It was equally certain that
the total wage rise expressed
las a percentage was far ahead
of the most - optimistic esti
mate of increases > in produc
tivity, and .this dearly could
mean a substantial addition
to the inflationary , forces
which was now strongly evid
ent in the economy. .
The Federal president of
the Associated. Chambers of
Manufactures, Mr. N. Rob
ertson, Mia the decision
would have an adverse affect
on the competitive position
of Australian manufacturers.
"This additional impost,
following the recent basic
wage rise of 15/- a week,1
must result- in an automatic
weakening of the protective
effect of the customs tariff
and also make it more diffi
cult for Australian manufac
turers to sell on overseas
markets," he said.
Disappointed
In Melbourne, the A.C.T.U.
Interstate Executive expressed
disappointment and concern
over the amount: awarded.
The executive said in its
view the Arbitration Com
mission totally disregarded
the reality of present day
wage values for various sec
tions of workers.
It said the most dis
appointing feature of the
judgment was that the largest
section of workers would re
ceive only small increases.
(Continued on Page 7)

CRITIOSM OF MARGINS

(Continued from Page 3)

The executive said it rec
ognised that the Arbitration
Commission had rejected the
principles which motivated
the reasoning in the 1954
judgment and had conceded
the A.C.T.U. proposals on
the importance of assessing'
company profits in the aggre
gate, rather than by the un
fair concept of the rate of
return on shareholders' funds

The percentage increase in
margins was most disappoint
ing, having regard to the
acceptance of these prin
ciples.

The secretary of the A.C.
T.U., Mr. H. J. Souter, said
250,000 workers would be
immediately affected by the
marginal judgment.

When applications from
other unions in all States
were presented, the workers
affected would re a c hi
1,500,000.

Other union officials said
the majority of the 250,000
employees in the metal trades
industry would receive only
an average weekly increase
of 6/-.

A. very small number of
employees would receive the
maximum increase of 35/- a
week. These men were em
ployed as dusters, and work
ed under difficult conditions.

The increase awarded by
the margins judgment: was
welcome but disappointing,
said the president of the
A.C.T. Trades and Labour
Council, Mr. Fred McCauIey.
He said the decision on a
percentage basis did not ap
pear to have been very fav
ourably acceptable to the
Commission itself. 1

Mr! McCauIey said the
judgment retained, unfor
tunately, the distortion?
which applied prior to 1947
and which were subsequent
ly restored by later judg

ments.

He said the only judgment
which could be considered to
meet the wishes of the unions
would be one which restored
the relativity which originally
existed between the marginal

rate and the basic s wage I

namely, three oyer seven.

Mr. McCauley said the
decision would not apply in
Canberra until applications
had been lodged and dealt
with by the Conciliation and
Arbitration Commissioner,
Mr. G. A. Findlay.

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