Govt Asked To Note Industry Proposals

Press, Volume CX, Issue 32351, 17 July 1970, Page 24

Govt Asked To Note Industry Proposals

(New Zealand Press Association) WELLINGTON, July 16. Federated Fanners will ask the Government to take note of proposals by the Employers’ Federation on industrial legislation, it was decided at the federation’s Dominion conference in Wellington today.

The conference also asked the Government to completely overhaul New Zealand industrial laws.

The executive director of the Employers’ Federation (Mr P. J. Luxford) told the conference that the nil wage order from the Arbitration Court two years ago might have been a catalyst of industrial troubles, but the causes were much more involved.

New Zealand’s prosperity was still heavily dependent on pastoral exports, but industries were now playing an in-

creasingly large part, he said. Few other Western countries had such a continuous labour shortage, combined with such rapid growth. “Over the last few weeks we have had a greater wage escalation than in any other time in our history,” he said. “This is responsible for rising prices.” Disparity between ruling rates and award rates was one of the major causes of complaint by unions. “The trend is towards direct bargaining by unions, and open confrontation, or the threat of open confrontation,” he said.

The increased wages for Auckland electricians had had widespread repercussions and encouraged other "unions to go for higher wages.

“Weaknesses in our industrial legislation have been building up for a number of years,” he said. “Trouble was bound to come. “Above-award margins have been increasing over the last 20 years and as a result unions are seeking ruling rate agreements substantially above award rates, instead of

being content to bargain on award rates.” The industrial situation had reached a position of great concern. Employers were examining the structure of their organisations. Their dilemma was how to negotiate and allow justifiable wage increases.

Unions were seeking amendments to awards well before the expiry date. Mr Luxford said he doubted whether the Arbitration Court, as presently constituted, was suitable for determining wage rates. The conference passed a resolution that: “In view of the coming general wage order hearing by the Arbitration Court, any order increasing wages should not be applicable to unions which have recently negotiated substantial wage increases.”