Explanatory notes on Stabilisation Act

Press, Volume CXI, Issue 32568, 30 March 1971, Page 2

Explanatory notes on Stabilisation Act

(New Zealand Preee Association; WELLINGTON, March 29. Comprehensive explanatory notes on the Stabilisation of Remuneration Act should be available from the Labour Department later this week, said the Minister of Labour (Mr Marshall) today.

The act itself is now available from the Government Printer. Mr Marshall explained the main principles of the legislation as a guide for negotiators. These are: Any award, industrial agreement, collective agreement (whether in writing or not), or determination fixed by any tribunal or Order-in-Coun-cil in force on March 25 is required to remain unaltered until its stated term expires. These are

defined as “existing instruments.” However, where there had been genuine negotiations before February 15, 1971, or in other cases where serious anomalies might result, there was provision to "catch up” to the average 1970 actual increase of 15 per cent, or for the parties to apply to the Remuneration Authority if an increase in excess of 15 per cent were agreed between the parties, said Mr Marshall.

The duration of these “catching up” agreements would then be the same as the agreement which they replaced. Any other award or instrument —as set out above —which is renegotiated after March 25, 1971, must remain unaltered for at least 12 months, or fpr a shorter period If the duration of employment is normally less than 12 months. These agreements, are defined as "new instruments” for the purposes of the act. Where the parties agree to an increase in a “new instrument” in excess of 7 per cent, then this increase may not take affect until 21 days after notification to the Remuneration Authority. Increases which will not require notification are where an individual (i) re-

ceives increase payment on promotion from one established position to another; (ii) where increased payment is made in accordance with an existing salary scale or arrangement providing for increases on grounds of age, service or qualification; (iii) where the increase is made on the grounds that the duties and responsibilities of the worker have substantially increased or the conditions substantially deteriorated. In situations where agreements are made involving (i) entirely new industries or enterprises which create new positions or occupations after March 25, 1971; (ii) entirely new enterprises with agreements

—as above—made between January 1, 1971 and March 25, 1971; (Hl) the adjustment of minor allowances for special circumstances (e.g., wet or inconvenient circumstances) the approval of the Remuneration Authority would be required. However, Mr Marshall said, the approval of the authority would not be required for minor allowances when the decision was made by a disputes committee, etc., provided under disputes clauses in awards and agreements. The act also provides for two, six-monthly cost-of-liv-ing adjustments to compensate for increases in the cost of living over the next 12 months.