Above-limit wage rises possible

Press, Volume CXI, Issue 32634, 16 June 1971, Page 2

Above-limit wage rises possible

(New Zealand Press Association)

WELLINGTON, June 15.

There are a number of ways in which wage rises may exceed the 7 per cent restriction, despite the clause of the Stabilisation of Remuneration Act which came into force by Order-in-Council signed shortly before midnight last night.

Part 3 of the act restricts increases in rates of remuneration to 7 per cent, but provides for a number of automatic exemptions.

It also gives the Remuneration Authority power to consent to wage agreements above the 7 per cent limit, subject to certain conditions.

Under the first section of part three the exemption from the 7 per cent limit applies to workers in three cases:

Where the payment is made as a result of the promotion of the worker from one established position to another established position; Where the increased payment is in accordance with an existing salary scale or arrangement providing for the increase on the grounds of age. service or qualifications; and Where the increased payment is made on the ground that the duties or responsibilities of the

worker have substantially increased or the conditions of employment have substantially deteriorated.

Newly created positions fall within the general restrictions, with their remuneration to be aligned with positions of similar status elsewhere in the employers’ undertaking, or with like positions elsewhere in the locality.

Under the second section of part three the Remuneration Authority can consent

to increases beyond the 7 per cent limit. It can agree to the proposed rate or to any rate below that and above 7 per cent, but make it a condition of its agreement that all or the excess part shall not come into effect until some later date fixed by the Authority. It can agree to a rate which is less than proposed but still above 7 per cent, and defer to a future date—not more than six months later—further consideration of the balance. Although the Authority can defer decision on all or part of an excess claim foi up to six months, it is not them obliged to agree to the claim. The act provides, in section 22, sub-section three, that when the Authority again considers an application all three options (including a.further six months deferment) are open to it The act’s penal clauses have applied since the act came into force on March 25. They are not included in part three.

Part five, section 31, makes it an offence to act in contravention or to fail to comply with any provisions of the act or any regulations made under the act. .

It is an offence to do anything, either alone or in combination with another person or groups of persons, with the intention of defeating the provisions of the act or any regulations made under it. The penalties, which are

subject first to summary conviction, provide for a fine of not more than $lOO in the case of an offence committed by an individual, and not more than $lOOO in the case of an offence by a corporate body. The act provides that “every payment made by an employer to a worker in breach of any provision of this act shall be deemed to be a separate offence, whether there are several such payments to the same worker or to different workers.”

Two other points arise: the "specified percentage” in this case 7 per cent, can be altered, up or down, by Order to Council; and the Stabilisation of Remuneration Act, 1971, has one year and 15 days to run unless it is cut short by Order in Council.