The Press MONDAY, JULY 27, 1970. Industrial Law

Press, Volume CX, Issue 32359, 27 July 1970, Page 12

The Press MONDAY, JULY 27, 1970. Industrial Law

The proposals for legislation to amend industrial law announced by the Minister of Labour (Mr Marshall) owe much to the work of his predecessor, Mr Shand. The tone of Mr Marshall’s speech to the National Party on Saturday morning suggests that if disputing parties are not disposed to negotiate settlements of their own accord the Government will provide machinery for negotiation. In general, direct action by the Government will be avoided. Apart from penalty sections in the Industrial Conciliation and Arbitration Act—which Mr Marshall shows little sign of enforcing—the Government cannot provide incentives to unions and employers to use this machinery, it seems to assume, for the most part, that there is a general desire in industry to avoid stoppages and strikes that entail losses for both sides; in the present atmosphere of unrest, this may seem to be putting faith in a spirit that is sadly lacking.

Recent experience has shown that far too often genuine attempts to resolve differences have been made only after a dispute has developed into a strike. Only then has the present machinery for negotiation or arbitration been employed. Delay and debate over getting negotiations going allow further time for misunderstanding, recriminations, and loss of temper—all of which tend to make settlement more difficult in the end. Mr Marshall’s plan to have provision for a disputes committee inserted in every industrial award is an attempt to ensure that the stage will be set for negotiation, and that a mutually acceptable conciliator is available, before a dispute develops. The scheme has been tested with some success in a few industries. As a first step in overhauling industrial law it is preferable to more rigorous proposals that have been suggested—proposals that could be expected to add a new dimension to industrial differences.

By giving unions and employers an opportunity to renegotiate unexpired awards with the minimum of delay Mr Marshall has given notice that wage increases must now be expected to sweep rapidly through the economy. This amounts to a judgment that a protracted period of adjustment in wages would be more damaging than a fairly rapid increase in wages. Having made this choice, the Government has a duty to ensure that the current round of wage rises is halted before a new round begins. This will demand firm economic action—probably much firmer than was taken in the Budget in June. Unless consumer demand is restrained, wage and price levels will begin a new spiral. The risks of the policy that the Government has adopted towards wage adjustments this year must not be taken twice.