Cabinet Moves On Rail Strike Effects

Press, Volume CVI, Issue 31364, 9 May 1967, Page 1

Cabinet Moves On Rail Strike Effects

(New Zealand Press Association) WELLINGTON, May 8. The Cabinet today took steps to cope with the effects of the nationwide railway strike which began at midnight on Sunday. Early tonight, the Prime Minister (Mr Holyoake) said that an approach toward ending the dispute had been made by an “interested party.”

At midday today the Minister of Railways (Mr Gordon) talked briefly with the secretary of the striking Railway Tradesmen’s Association, Mr A. G. Goldsmith, but there were no further meetings. These were the major developments as the strike neared the end of its first day.

The Deputy Prime Minister (Mr Marshall) said tonight that a Cabinet committee has been set up, along with an officials’ committee, to cope with problems the strike would raise —and with those which already have arisen. “It will be the responsibility of this committee to keep the position under review,” he said.

Mr Holyoake told reporters at a press conference tonight that the Cabinet had tackled a long agenda as well as considering the rail strike. “We took today what action we think necessary to ameliorate the difficulties and hardships which people in New

Zealand may be subject to as a result of the strike,” he stated. He declined to give further details, but said he hoped to announce procedure tomorrow. Asked whether he believed a deadlock had been reached, Mr Holyoake said: “The Government is open to an ' approach at any time.” Approach Made He then said there had been an approach by an “interested party”—but added that he was not yet authorised to indicate by whom this approach had been made.

Mr Holyoake said he did not at the moment think it would have any “significant effect” on the position. “The Government position is perfectly clear, and that is that the matter should be referred to the Railways Tribunal. “The Government will of course, accept the decision of the tribunal.”

Asked whether he expected any developments in the next 24 hours, Mr Holyoake replied, “I’m always hopeful. I am always hopeful wiser counsels will prevail.” Emergency The strike has not yet reached the proportions where a state of emergency must be declared. “The Government has not considered this situation has yet been reached, and we hope it will not, in fact, come to that,” Mr Marshall said tonight. Mr Marshall said he was unable to say how long the strike would have to continue before such a declaration would be made. “If the strike is not settled and the production and distribution of goods and services are jeopardised to the point where serious shortages develop and where export trade is held up and people are beginning to lose their jobs, it will be necessary for the Government to declare a state of emergency,” he said.

The last state of emergency to be declared in New Zealand was in 1951. It was brought about by a nationwide waterfront strike. Strike Issue

Earlier today Mr Marshall reiterated arguments in the dispute. “The basic issue in the railway strike is whether indentured tradesmen in the railways should receive 6d an hour more than other tradesmen with similar skills and doing similar work in private employment. “The Government says that its tradesmen and other staff should be paid the same as others doing similar work. The railway tradesmen say they should get 6d an hour more,” Mr Marshall said. Mr Marshall recalled that in January the Railways Tribunal awarded an increase of 6d an hour for indentured tradesmen and the Government had paid this increase back to last October—and would continue to pay it while the order operated. “This is not in dispute,” he said. “Since this order was made a further ruling rates survey has been held applying to all branches of the State ser-

vices, and this shows that an increase of 7d an hour is now justified. Additional Penny “The Government says that the railways tradesmen should continue to receive the 6d earlier awarded and should receive the additional Id an hour to bring them up to the rates for tradesmen in private employment, but that they should not get both the 6d and 7d an hour increase. “If this were done the railway tradesmen would be getting an average 6d an hour more than anyone else. “The way in which fair relativity between Government employees and other employees outside Government service is maintained is by an annual ruling rates survey which shows the average rates of wages paid to employees in eight centres for eight trades and two labourer groups. “The results of the ruling rates survey taken in February show that an increase of 7d an hour should be paid to Government employees to bring them up to average wage levels in private employment,” said Mr Marshall.

“This ruling rates survey shows the rates which tradesmen, both indentured and unindentured, receive outside Government services. The margins for skill paid to tradesmen over labourers and others is revealed in the ruling rates survey and this margin is provided for in the wages rates which the Government pays.”