1973 danger signals seen by employers

Press, Volume CXII, Issue 33110, 28 December 1972, Page 8

1973 danger signals seen by employers

"With a new Government in power, and continuing confidence and enthusiasm among the business community, New Zealand looks to be heading for an exciting year of economic progress and expansion,” says the president of the New Zealand Employers’ Federation (Mr A. F. Crothall) in a New Year message.

“Industrial relations issues will be very prominent during this period and the Labour Government’s recognition of the importance of good industrial relations is welcomed. This is emphasised by the allocation of the Labour portfolio to the Deputy Prime Minister (Mr Watt) and we appreciate the exchange of views we have already had with him.

“We look forward to a close association with him and his associate, Mr Colman, and with the other Ministers whose portfolios affect industry and employment. “Despite the prospects for economic growth and expansion, however, there are danger signals showing. The country’ must not delude itself into believing that the inflationary wage-cost spiral has been stopped, nor that this can be done easily. “Although the new Government may bring a fresh approach to bear on industrial relations issues, excessive wage increases without corresponding increases in productivity could be a major problem in 1973. The threat) of inflation will only be' checked if all the parties involved put their own selfinterest aside and work in the interests of the com-, munity as a whole.

“There must be restraint of some kind: if it is not to be through a body like the Remuneration Authority, then moderation in wage increases will have to come voluntarily from employers and workers alike. “If the trade unions can offer reasonable moderation in their wage claims, this will have to be matched by employers declining to outbid each other in a labour market where certain skills are at a premium. Without this sort of voluntary restraint from both sides, there is a very real risk of chaos in the wage-fixing area as in previous years.

“The outlook for the economy is heartening, but it must not be allowed to get out of control.

“The year 1973 will see three major legislative moves in the industrial relations area: the first step towards equal pay will begin, the Accident Compensation Act

comes into force and the Industrial Relations Bill will be considered by Parliament.

“Furthermore, the Government is embarking on a welcome programme for regional development and has proniised to entourage industry to achieve higher rates of productivity growth. It also has plans for retraining and relocation schemes, and for taxation and other incentives.

“The success of any or all of these will depend on the stability of the economy during the next 12 to 18 months. All our expansion and development potential will be wasted unless the inflationary pressures which still hound the country can be controlled. “The Equal Pay Act will impose severe organisational and financial burdens on employers. It is very complex legislation with detailed criteria for application and a very specific timetable. The success of the equal pay implementation programme will depend on employers and unions both keeping to the provisions of the act and honouring the spirt of the legislation. “The Employers’ Federation is heartened by indications from the Government that it will proceed with the provisions of the Industrial Relations Bill that were jointlyagreed between the Federation of Labour and ourselves. The development of new attitudes to wage-fixing is urgent and we believe this can best be done through the institutions and procedures set out in that initial draft legislation.

“We also look forward to the establishment of the Industrial Relations Council because of the opportunity it will provide for continuing dialogue between employers, trade unions and the Government on matters of mutual concern.

i “Above all, the need is for ; responsibility from all parties I involved in industrial reilations and wage-fixing. New ; Zealand can be confident of industrial harmony and prosiperity in the future if the I problems of the past few i years can be overcome. The i Employers’ Federation is I ready and determined to play its part,” Mr Crothall said.