A.C.T.U. Increases Wage Claim

Press, Volume CV, Issue 30971, 29 January 1966, Page 17

A.C.T.U. Increases Wage Claim

(Special Crspdt. N.Z.P.AJ

SYDNEY, Jail. 28. Following the sharp jump in the cost of living in Australia in the December quarter the Australian Council of Trade Unions plans to increase its basic wage claim this year by about 4s and its margins claim by 2s.

This will bring the basic wage claim to £2 2s on top of the present £l5 Bs, and the margins claim to £2 18s. In the last application, adjustments to the basic wage for price increases were abolished by the arbitration commission, but the A.C.T.U. is reported to be hopeful that this decision will be reversed. Financial writers have noted that the latest increase in living costs came in spite of the absence of anything that could be called a wages-and-prices spiral.

They feel that because of this the Federal Government

and the Arbitration Commission will have to weigh up very carefully the attitudes they will adopt at the 1966 basic wage and margins hearing that will start soon. In earlier quarters the consumer price index had risen mainly because of higher food prices, arising from seasonal and drought conditions. But in the December quarter, in which prices rose an average of about 3s lid, the Federal Government’s Budget measures putting up personal taxes, petrol, cigarettes, tobacco and beer, were largely to blame. Spending Slower A continuous rise in consumer prices at the rate of 4 per cent a year, equal to about 13s a week in the cost of living, and almost entirely unconnected with wage-cost pressures. has been present for the last two years. This has had the effect of clipping the effective purchasing power of award wages, and slowing consumer spending.

The Budget of the former Treasurer and new Prime Minister, Mr Holt, was aimed at slowing consumer spending in order to promote defence and development, but the retail

sales growth rate has been so poor that measures to stimulate consumer demand are now seen as necessary by many observers.

As far as wages are concerned. there has been an increase of only about 6s a week in average male Federal award rates, compared with a cost of living rise of 13s a week over the last year. The Arbitration Commission at the 1966 hearings will have to bear these facts in mind, while endeavouring at the same time to avoid starting a wages-and-prices spiral.