Wage restraint bill reaches House

Press, Volume CXI, Issue 32542, 27 February 1971, Page 1

Wage restraint bill reaches House

(New Zealand Press Association)

J WELLINGTON, February 26. The long-awaited wage restraint bill—setting guidelines for wage and salary increases this year—was introduced into Parliament today. Entitled the “Stabilisation of Remuneration Bill,” the legislation will be considered by a Parliamentary select committee next week before coming back to Parliament for detailed debate.

No opposition came from the Parliamentary Labour Party. Although urgency had been taken to forestall any possible Labour filibuster, the bill-was put through its initial stages before lunch and with only one Labour speaker—Mr Kirk—having made any comment on it.

As a succession of Government speakers praised the bill and stressed the urgency of its provisions, Labour members chatted among themselves or sat quietly listening. A Parliamentary select committee—the Labour and Mining Committee, with slightly altered membership—will study the bill on Tuesday afternoon. The committee is expected to sit for several days, hearing submissions from interested parties, before reporting back to Parliament. Mr Kiik told the House today that the Labour Party would scrutinise the bill carefully in committee. He was critical of the Government for introducing such

a complex measure without consultation with the Opposition.

When passed by Parliament, the bill will be deemed to have come into effect on February .15. But one section of the bill—that setting mandatory ceilings on wage increases—will not come into effect until a special Order-in-Council is made. The bill:— Sets a 7 per cent guideline for wage increases granted under new awards. Establishes a Remuneration Authority of from three to five members. Provides for updating of awards—where negotiations had begun before February 15—to provide a 15 per cent wage increase above the rates at January 1 last year.

Provides penalties for noncompliance with the provisions of the legislation. Lays down that new awards should remain in force for a minimum of 12 months. Applies the same principles of stabilisation to State services as to the private sector. No appeal is allowed for - against decisions of the { authority. The bill provides for two . cost of living wage adjust- . ments in the next 12 months. • Shorter terms Although new awards are 1 required under the bill to '■ continue in force for at least 1 another 12 months, provision ! is made for the authority to agree to shorter periods where special circumstances , exist. The authority is also ex- [ pected to make cost-of-living orders based on the movement of prices as shown by > the consumer price index. The orders will be made “as soon as possible” after ' the preparation of the index . for the period ending June 30, i 1971, and the period ending s December 31, 1971. The wage orders then made : will correspond precisely to the rise in the cost of living

as shown by the index. But wages increases will not be granted to workers who have' already had a wage increase': equal to or greater than the, percentage fixed by the order. I While this section remains! in force, the General Wage Orders Act of 1969 “shall be I deemed to be suspended.” Two clauses setting a ceiling of 7 per cent on wage increases but giving the authority power to agree to a larger increase—or to defer or alter any agreement—will be brought into force only if voluntary acceptance of the Government’s guidelines fails. The bill removes past legislative provisions for halfyearly surveys for State employees. But the bill lays down that ! after survey of “outside” ' wages to be conducted in ' April of 1972, adjustments are to be made in State ser- , vice pay scales “as are neces- { sary to reflect the movement ' in pay scales outside the State services since April of 1971, i and shall come into force on October 15, 1971.” State servants ■ Until that time, State ser- , vants are covered by the cost 1 of living provisions made in , respect to all workers. Except for that part of the bill setting compulsory ceilings—which will come into force if necessary by Order in-Council on a date to be fixed—the bill is deemed to have come into force on January 1 of this year. The regrading of any groups of State servants is restricted by the bill. Although the authority may consent to exceptions, the bill provides that regradings shall not be made of occupational groups in the State services “so as to take effect before the first day of January, 1972.” Specifically exempted from this provision are cases where "the authority is satisfied that negotiations for any such regrading or adjustment had progressed to a substantial degree before February 15, 1971.”