The Press THURSDAY, DECEMBER 2, 1971. Backing the workersin whose interest?

Press, Volume CXI, Issue 32779, 2 December 1971, Page 14

The Press THURSDAY, DECEMBER 2, 1971. Backing the workers—in whose interest?

When he said that his company “ backed its workers “ to the hilt ” in their claim for a 9J per cent increase in wages, the managing director of N.Z. Forest Products (Sir Reginald Smythe) was, no doubt, acting in what he considered the company’s best interests. It is doubtful, however, that he was acting in New Zealand’s best interests in making such a statement publicly. A labour dispute which may halt production for even a few days is very costly to an industry with such a heavy investment in plant as pulp and paper production; Forest Products’ management was understandably anxious to see the men back at work as soon as possible.

As a director of a large exporting company, Sir Reginald Smythe may well believe that “ what’s good “for Forest Products is good for New Zealand”; but that proposition cannot always be true, and probably is not true in the present instance. The management and the company’s pulp and paper workers had agreed on a 9f per cent wage increase; the Remuneration Authority approved an increase of only 8 per cent The union has appealed to the authority to reconsider this decision; Sir Reginald Smythe says the company has not been approached “ to put pressure on the authority ”. Other employers might well take the view that, whatever Forest Products’ intentions, the effect of Sir Reginald Smythe’s statement must be to exert pressure on the authority and, indeed, to undermine the Government’s' efforts to restrain wages and prices.

Sir Reginald Smythe may disagree with the Government’s view—as “ The Press ” has disagreed with it—that the Remuneration Authority is the best device for achieving this end. He cannot ignore the consequences of his company’s policies for other employers and other industries. If he merely wanted to assure Forest Products’ workers of his sympathy for their claim he could have done so personally, or through the normal channels of communication in his company. If the Remuneration Authority grants this appeal, the impression may be created that Sir Reginald Smythe’s public statement influenced the decision; other unions whose wage increases are declined by the authority might then be encouraged to put pressure on their employers to issue a press statement backing their appeals. This would be an unfortunate consequence of Sir Reginald Smythe’s action. It could hardly be held to be good for New Zealand in the present Inflationary situation.