ARBITRATION COURT CRITERIA

Press, Volume CVIII, Issue 31726, 9 July 1968, Page 1

ARBITRATION COURT CRITERIA

Federations Agree On Suggested Alteration

(New Zealand Press Association) WELLINGTON, July 8. The Federation of Labour and the Employers’ Federation reached agreement today to amend the criteria which the Arbitration Court takes into account when considering a general wage order application.

The agreement seeks to amend the Economic Stabilisation Regulations, requiring the court to give “primary consideration” to any rise or fall in retail prices as indicated by any index published by the Government Statistician.

At present a rise or fall in retail prices is just one of four criteria considered by the Court.

The Government has yet to accept the agreement but the Prime Minister (Mr Holyoake) told reporters tonight that the Government was treating the matter with urgency and hoped to advise both parties of its decision by Thursday. If the agreement is accepted. the F.O.L. will at once file another wage order application. The agreement, revealed by the president of the F.O.L. (Mr T. E. Skinner) after both parties met the Cabinet tonight for nearly two hours, reads: “The Employers’ Federation and the Federation of Labour agree that, subject to the quick amendment of the regulations proposed, the Federation of Labour will at once file another application. “Both parties will make no fresh submissions other than up-to-date statistical material.

Up-dating Material "Neither of the parties will appear before the Court for any other purposes other than to present updated material. “The Court will be asked to make such order, having regard to the change in criteria, as it considers just and equitable.” The agreement seeks to amend regulation 3 (I) of the Economic Stabilisation Regulations, 1953, which governs the Court when making a wage order. The other criteria to be considered remain intact. They are:—

The economic conditions affecting finance, trade and industry in New Zealand.

Any increase or decrease in productivity and in the volume and value of production in the primary and secondary industries of New Zealand. Relative movements in the incomes of different sections of the community. All other considerations that the Court deems relevant

After tonight’s meeting with the Cabinet Mr Skinner said that the Government had agreed to treat the matter with urgency. No Indication He said the Government gave no indication what its reply would be, but it was expected to be delivered to both parties on Thursday after the Government caucus meeting. Asked if the F.O.L. would return to the Arbitration Court, Mr Skinner said: “It will depend entirely on the Government.”

He said the federation did not plan further talks with either the Government or the Employers’ Federation. “We will wait for the Government’s reply,” he said. Mr Skinner said the federation had made no concessions, and described the agreement as giving equity and justice to the wage and salary earners. Mr Skinner said the federation’s advice to unions to make individual wage approaches to employers still stood.

Long-term View

The F.0.L., he said, had agreed with the Government and the Employers’ Federation to examine the present Economic Stabilisation Regulations and the Economic Stabilisation Act. “In many respects they are outdated and need to be completely overhauled in the long-term view,” he said. The director of the Employers’ Federation (Mr P. J. Luxford) said he hoped the agreement would avert aps proaches to employers.

He said he hoped the F.O.L. would make application for another wage order if the agreement was accepted by the Government Mr Luxford described the talks as “very wide-ranging,” held during an extremely difficult situation. The Prime Minister said both federations understood that the Government would have to contact other interested parties before giving a decision. Other Parties He named the Public Service Association, the Manufacturers' Federation and the Federated Farmers as the other parties. He said the Government caucus would be advised as well. Mr Holyoake could give no indication what the attitude of the three- organisations would be to the agreement "I have given an assurance to both the F.O.L. and the Employers’ Federation that the Government would give the agreement its urgent consideration and convey its de-

cision at the earliest possible date—no later than Thursday,” he said. After tonight’s meeting the Government caucus met again for an hour. When caucus dispersed at 9.05 p.m. the Prime Minister said no further decision had been reached.

Minister’s Address The meeting between the two federations was convened by the Minister of Labour (Mr Shand) at 2.40 p.m. He briefly addressed both parties. Discussions continued until 5.24 p.m. under the chairmanship of the Secretary of Labour (Mr N. S. Woods). The representatives who took part in the talks were:— Employers: Mr Luxford; the president of the Employers’ Federation, Mr C. R. Clayton; the vice-president of the Employers’ Federation, Mr E. P. Salmon; the president of the Canterbury Employers’ Federation, Mr F. Baird; the president of the Otago Employers’ Association, Mr C. Read; Messrs R. D. Baigent and V. P. Blakely, executive members of the Employers’ Federation. Federation of Labour executive: Mr Skinner; vice-

president, Mr J. Napier; secretary, Mr K. McL. Baxter; Messrs F. Thorn, J. Knox. L. Hadley, W. F. Molineaux, executive members.

Mr Shand told representatives of the two federations before their meeting that the consequences of failure by them to reacn agreement would be “terrible.” “The threat to our economy of a considerable general increase in costs at a time when we are striving desperately to adjust ourselves to the difficult international situation is serious enough,” he said. Rule Of Law “Infinitely more serious Is the threat to discard or to destroy, by refusal any longer to accept decisions arrived at through its machinery, a system of industrial negotiation which for 70 years has made New Zealand less prone to industrial disturbance than any other country in the world. “If we proceed on this course, we will not merely destroy the procedures which have served us in the past, we will be faced with a vacuum, with the lack of an accepted rule of law likely to lead to a period at industrial chaos,” he said. “If you cannot find a solution, our country is going to face a terrible reverse. “You have a heavy responsibility toward the people you have been elected to represent. You have a far heavier responsibility toward the society of which we are all members.” said Mr Shand.