Industrial Unrest

Press, Volume CX, Issue 32349, 15 July 1970, Page 16

Industrial Unrest

Sir,—Both “Realistic” and “Wage Spiral” seem to agree there is a strong relationship between rising prices and industrial unrest. In industrial relations rising tempers keep pace with rising prices because rising prices keep ahead of rising incomes. Harsh criticism of the U.E.B action in Increasing wages despite the Arbitration Court's “no-change” wage order in 1967 needs some qualification. At the time, U.E.B. stated the increase was . made possible by increased efficiency and to help meet the cost-of-living rises The question is, as increased efficiency returns greater profitability, should such profits: (a) be retained by the firm and shared with the tax-gatherer; (b) in the reductirn of prices to the consumer: or (c) be used as a reward or incentive for those employees responsible for the greater efficiency? The answer depends on which particular political party-pen one sticks one’s neck out from, doesn’t it?—Yours, etc., G. M. EDMONDS. July 14, 1970.

Sir,—The cause of industrial unrest could well be the nil decision of the Arbitration Court, for did not the salaries of the members of Parliament rise soon after? The payroll tax is of current significance. Sir James Doig pointed out that his company would have to earn an extra $320,000 next year to pay this tax. He said: “This is bound to be inflationary. It is nothing more than a backdoor method of applying indirect taxation and putting the onus on business instead of the Government shouldering its own burdens.”—Yours, etc.,

EQUALITY OF SACRIFICE. July 14, 1970.