Productivity

Press, Volume C, Issue 29508, 9 May 1961, Page 14

Productivity

No far-reaching change is involved in the decision, announced by the Minister of Labour (Mr Shand) to include “ productivity " as one of the factors which the Court of Arbitration is required to take into account when making any general wage order. Indeed, productivity—a term economists give to the output a head of the labour force—seems to have been comprehended in the provision inserted in the 1953 Economic Stabilisation Regulations requiring the Court to take into account any increase or decrease in the volume and the value of production in the primary and secondary industries of New Zealand. The Court has probably accepted, as qualifying under this provision, the many extensive arguments it has heard, during proceedings, on the question of productivity. However, the output a head of the labour force is highly relevant to the growth of the economy—and to the standard of living of an expanded population—especially in view of recent statistical information that the growth of productivity in New Zealand over the last decade is one of the slowest in the world New Zealand’s productivity growth stands at U per cent per annum over the last 10 years, compared with Australia's 2.5 per cent, Italy’s 4.5 per cert. Western Germany’s 5.3 per cent., and Japan’s 5.5 per cent Raising productivity does not mean, of course, merely that workers should

work harder. Provision of capital, technological advances, more efficient use of machinery, as in shift work, all are points that influence output a head of the labour force. But since productivity is one of the chief factors influencing economic growth it is a subject eminently worth while discussing—by both employers and employees—in the context of wages. The Minister has been wise to heed representations that specific reference should be made to “productivity" in general wage order discussions before the Arbitration Court.