§ Mr. CONANTasked the Minister of Labour whether the index numbers published by his Department relating to the average changes in rates of wages are based on complete information as to the wage rates fixed by collective agreements between employers and work-people; and how far these statistics may be taken to be an accurate index of the changes in the general level of wages in this country?
§ Sir H. BETTERTONThese index numbers are based largely on the rates of wages fixed by collective agreements,338W statutory orders, etc., in a wide selection of the principal industries in which organised arrangements exist for the regulation of wages, but particulars are also included of changes in wage rates, made on an organised basis, in some industries in which the actual rates of wages are not fixed by collective agreements. Arrangements are in operation under which particulars of changes in rates of wages, including copies of collective agreements, are systematically obtained by the Ministry of Labour from the employers, or their organisations, and the trade unions concerned. I have no reason to think that any considerable number of changes in rates of wages made on an organised basis, or of collective agreements, affecting substantial numbers of workpeople, escape the notice of my Department. The index numbers published, which relate to the weekly full-time rates of wages of corresponding grades of workers at the various dates covered, may be taken to provide an approximately accurate indication of the average percentage changes in the rates of wages of such workers so far as these are covered by collective arrangements on an organised basis. The index numbers would be affected somewhat if sufficient information were available to enable the changes in the rates of wages of all other workers to he included, but this would probably be only to a small extent, since in many cases the rates of wages of these other workers follow the movements of those covered by the collective agreements or other organised arrangements. The index numbers do not take account of such factors as changes in the proportions of workers employed in different industries and occupations or paid at time rates and piece rates, as to which comprehensive statistics are not available; in view of the changes during the past 20 years in industrial organisation and in the system of wage-payment in many industries these factors, though relatively unimportant in regard to short-period comparisons, should be borne in mind when the index numbers are used for the purpose of comparisons of the present level of wages rates with that of 1914 or earlier years. It should also be observed that these index numbers do not reflect changes in average earnings due to these factors or to variations in the state of employment.