‘Industrial Harmony Through Strength’

Press, Volume CII, Issue 30155, 12 June 1963, Page 16

‘Industrial Harmony Through Strength’

(New Zealand Preu Associntw)")

AUCKLAND, June IL

Industrial harmony in New Zealand would be better achieved by fostering stronger organisations of employers and employees, with a minimum of Government interference between the parties, the Minister of Labour (Mr Shand) said today in Auckland.

Addressing the Auckland Chamber of Commerce on industrial relations, Mr Shand said that in conditions of full employment, a great deal of industrial disturbance arose from decisions of individual employers to grant “out-of-line" wage inc-eases.

Often the individual employer was only too willing to grant an increase to order to get a jump ahead of competitors in bidding for scarce labour. Such a move often embarrassed competitive employers and also trade union officials.

Competing employers were under immediate pressure to grant similar wage increases and trade union officials representing employees in other industries were Lmmedia<tely under Are if they could not obtain increases for their members. “Trade union officials and the general body of employers havea common objective in maintaining stability and reasonable relativity,” said Mr Shand Mr Shand said it was a popular misconception that the Arbitration Court fixed wages and conditions of work in New Zealand. In practice, this was not so. More than 80 per cent, of the awards of the Court were reached as a result of agreement in conciliation.

In fewer then 20 per cent, of instances where the Court arbitrated between the parties, it was charged, in arriving at its decision, to take account of the prevailing rates in other industries—in effect, the rates which have

been arrived at by agreement in conciliation. Mr Shand suggested New Zealand could learn something from Sweden where strong. disciplined organisations of employers and employee* met to fix rates of pay and conditions of employment and settle disputes with very little reference to the Government.

Mr Shand said he was confident employers and employees meeting across the bargaining table could reach, solutions which wore satisfactory to the community as a whole.

Both parties had many more aims and objects in common than they had in conflict.

The time was long past whan tt was possible for employees as a body to benefit substantially by reducing the employers’ share of returns of industry, any more than it was possible for the employers as a body to become prosperous by squeezing tne employees' reward.