Wages Increase—F.O.L. ‘Restrains’ Dairy Workers

Press, Volume CI, Issue 29866, 5 July 1962, Page 12

Wages Increase—F.O.L. ‘Restrains’ Dairy Workers

(New Zealand Press Association)

WELLINGTON, July 4.

The Federation of Labour had to restrain the Dairy Factory Workers’ Union from taking action on the Arbitration Court’s general wage order decision, said the president of the federation, Mr F. P. Walsh, tonight.

The dairy workers were specifically excluded from the provisions of the order.

Mr Walsh said that during a telephone conversation with union representatives today, they had expressed dissatisfaction with the order and wanted to take “immediate action.”

“I have arranged to meet, them next Wednesday when the matter can be thoroughly discussed,” he said.

Mr Walsh, commenting on the wage order, said workers would have to give serious consideration to “using their combined organised power” to obtain justice from the employers. “This decision will unfortunately undermine the confidence of the workers in the Court of Arbitration.” He favoured an “orderly manner" of making adjustments in wages rather than “methods which would cause industrial strife, loss of wages, and loss of production which can never be recovered." The order fell short of what the workers could have expected and would be a bitter disappointment to those on minimum rates.

“They have the example of Parliamentary salaries, which increased by amounts from £l5O to £5OO per year plus liberal tax-free allowances; of public service increases to departmental heads of about £lOOO spread over two years: and of the Budget which gives those on higher incomes a relief in tax of £5O. as well as many other substantial concessions.

“It is six months since the hearing of this wage applica-

tion commenced, and the gain is infinitesimal, yet prices can be raised overnight to swallow up the major part of the Court’s decision,” said Mr Walsh. Other comments on the increase were:—

Mr P. J. Luxford, Secretary of the Employers* Federation: “Though the percentage increase is small, it could add up to £lB million to the wages bill. It appears the Court has been particularly concerned by the economic position of the minority of workers who are employed on minimum award rates. These are the only ones who are legally entitled to the increase. “Can I emphasise that there is no obligation on employers to pay increases to workers already receiving aboveaward margins? “If this increase is spread as widely as in the past, the additional wage bill will, undoubtedly. cause price increases and the very people whom the Court intended to benefit will have nothing but an illusory increase." Mr E. J. Batt, president of the Public Service Association: "The decision has come as a shock. On the evidence

submitted to the Court it seemed that a much more substantia] increase would have been justified. The Court, in fact, admits that the order will not restore the effective weekly wage rate index to the level at which it stood at March. 1957."

Mr A. P. O'Shea, secretary of Federated Farmers: “It was gratifying that in its decision the Court had indicated that it appreciated the difficult ‘economic and financial’ conditions of the farming industry. “In consequence it has excluded workers employed in those industries who come within the scope of awards or industrial agreements. This applies to dairy factory workers. and shearers and shedhands as well as musterers. drovers and packers. Workers in the freezing industry have not been excluded. “At the same time, however. it is difficult to see how trouble can be avoided under this arrangement, but we can only wait and see what happens.”

Sir John Allum, president of the Auckland Provincial Employers’ Association: “The order is not going to shake New Zealand to its foundations. but it is bound to make things a little more difficult for firms trying to expand our markets overseas. “I think employers with a full knowledge of what is going on in the country today would be of the opinion that it would have been far better to have had a little bi*, of a rest as far as wage increases are concerned.’’ (Details of Increase, Page 15)