Productivity To Be Wage Order Factor

Press, Volume C, Issue 29502, 2 May 1961, Page 11

Productivity To Be Wage Order Factor

(New Zealand Press Association) WELLINGTON, May 1. The Minister of Labour (Mr Shand) announced today that the Government was amending the Economic Stabilisation Regulations, 1953, to include “productivity” as one of the factors which the Court of Arbitration is to take into account when making any general wage order.

i “Apart from movements in jthe coqsgmer price index - which reflect changes iu the purchasing power of money, the ty/o most important matters which affect the level of real wages in New Zealand are the productivity of 1 New Zealand labour and the return which we get for the very large proportion of our production which we sell in overseas markets,” he said. “Productivity is a matter very largely within control. Many factors enter into it. “First, there is the application of capital and it is sometimes possible to obtain an apparent increase in proi ductivity in a particular field iby applying increased capital without achieving any absolute increase in productivity in the community. “It is the absolute increase that counts—the amount of productive work which is done by the whole labour force of New Zealand in i whatever occupation they may be employed. In this every man gainfully employed plays his part. Largely Out of Control “The price which we receive for our produce overseas. on the other hand, is, ■ at least in the short run. largely outside our control. We should and do make strenuous efforts to improve our marketing techniques, to open new markets, to improve the quality of our products, all with the objective of obtaining a better price. But these efforts can be and have been from time to time entirely frustrated by factors quite outside our con- : trol. “In anything but the very shortest term assessment the cost of adverse changes of this nature must be shared among the-whole community and, of course, the converse is true. In a period of rising prices for our overseas produce and better terms of trade it is fair and proper i that the greater rewards [ should be shared through the

whole community,” Mr Shand said. . ? . No Direct Reference The question of changes in the volume and value of production in primary and secondary industries was already specifically referred to in the regulations, but there was no direct reference to "productivity” although it was fair to say that the question had been argued at length before the Court in the past and it was clear that the Court had taken this into consideration when making previous orders. Representations had been made that specific reference should be made to productivity and he felt the claim had merit, he said.