Justice W. Jethro Brown of the Industrial Court of South Australia has
stated the problem with great clearness. He writes, "With respect to
such an issue, one is on the horns of a dilemma. (1) If unusually high
profits are being made in an industry, ought not the employees to have
a right to share therein? (2) If one does award high rates of wages, is
not one inviting discontent amongst other classes of workers in allied
industries or industries generally? Employees are so apt to judge
themselves well or ill treated by a comparison of nominal wages without
any reference to conditions of industry. In various judgments I have
held that it would be quite permissible, if not appropriate, for the
Court to take into consideration the fact that an industry is
prosperous. On the other hand, as a matter of practice I have tried to
work towards an ordered scheme of wages throughout the industry of the
community as a whole."[148]
If the above conclusions are accepted, it must be agreed that the scope
of any measure designed to help in the attainment of the desired
distributive outcome must be the whole field of industrial enterprise to
which the policy of wage settlement applies. The question that remains
is, whether it is possible to devise a principle of wage settlement by
which wages as a whole can be adjusted by reference to the profit
situation in industry as a whole. That is to say, whether any measure
can be elaborated by which all wages could be adjusted, according as
profits in industry as a whole exceeded, approximated, or fell below the
profits level that is taken to mark just and sound distribution of the
product of industry.
5.--It is plain that if the measure is of such a character that no great
harm can result from the possible error involved in the process of
calculation, it can be adopted with less hesitation than if the opposite
were the case. That is one of the considerations prompting the following
proposals.
Public-domain text, read in full here on John Shaqi.
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