PAY INCREASE FOR STATE EMPLOYEES

Press, Volume C, Issue 29679, 24 November 1961, Page 12

PAY INCREASE FOR STATE EMPLOYEES

(New Zealand Press Association) WELLINGTON, November 23. The Government has approved a wage increase of up to 3{d an hour for employees in the State services. The increase,, which will bring their wages into line with those being paid to workers in private employment, will be retrospective to October 1.

The Minister of Labour (Mr Shand) today issued a strong warning to employers and employees that the increase should not be accepted as a justification for further widespread wage increases which would be disastrous for the economy.

“The increase for State employees has been agreed to because the ruling rates survey has shown that since the last survey their wages have fallen behind those being paid to their counterparts in outside employment to this extent,” Mr Shand said.

"As a result of the severe inflationary pressure which developed late last year and early this year, wages outside the service rose appreciably. It is because of this that State employees are now receiving an increase,” .said Mr Shand. j “In recent months the indications are that there has been less pressure on wage rates as inflation is being checked,” Mr Shand said. “I appreciate, the good sense 'and responsibility of the 'great majority of employers arid employees who are helping to bring this about. “I have been aware, however. of the damage done by the irresponsible attitude of certain employers, and the tactics of some unions who have felt themselves to be in a position to exploit the situation. "This Government’s economic policy is aimed at maintaining full employment. Nothing can frustrate these efforts more surely than the easy acceptance of unjustified wage claims by employers who are temporarily in a position to pass them on. ‘‘lt seems appropriate at this time, when the Government is granting its own employees the wage increases

which spread through industry last summer and completed the inflationary cycle, to emphasise that, except in the short term, no-one gains from wage increases which are not matched by an equivalent increase in productivity.” Complex Survey 1 Mr Shand said the Gov- ' ernment had always believed : the wages of its employees should be fairly comparable with those being paid to their counterparts in out1 side employment, and had undertaken to ensure this. If the country was to have an adequate and competent Public Service, rates of pay must correspond to those available in outside em.ploy1 ment. The problem of assessing fair relativity was complex, he said. The present system of ruling rates surveys was far from perfect, although it had been progressively improved in successive survevs since the system was first introduced in 1950. No method had yet been devised of making an adequate comparison of rates paid for clerical work, and rates for clerical workers were adjusted by applying the assessed increase for tradesmen.

The recent survey had been requested by the State; employee organisations, be- ; cause they considered their wages were falling behind! those paid in outside employment. The regular weekly wages paid to labourers and tradesmen in eight trades; had been assessed and compared with those paid for similar work in the Government services. Survey’s Scope Regular weekly bonuses or extra payments had been included in the survey, but irregular or periodic bonuses, or additional payments had been excluded. The survey had covered almost 5000 individual work-; ers in nearly 1000 firms in; eight cities and towns. | The survey had shown the; regular weekly wage over' the eight trades involved was just more than 4d an! hour higher than in the! State services. For skilled; labourers the average rate in outside employment was! just under .3 id an hour; higher. Account had been taken of I certain advantages in State; service employment, and as a result of the negotiations, agreement had now been reached on an increase of 3Jd an hour for tradesmen and skilled labourers. Mr Shand said that application of the increase to other employees in the Gov-; ernment service was a matter for decision by the ap- ! propriate Government tribunals. who would also decide the proportionate increases for juniors, apprentices, and others on lower salary scales.