Direct bargaining predicted

Press, Volume CXIII, Issue 33252, 15 June 1973, Page 10

Direct bargaining predicted

(New Zealand Press Association) AUCKLAND, June 14. Trade unions would be looking more seriously at the profitability of individual companies as a result of the Budget this evening, said the president of the Federation of Labour (Mr T. E. Skinner).

He predicted a move I away from a period or bargaining on relativity rates towards one or bargaining directly with the { employers on the basis of productivity. “Companies with high profits must expect to pay more than companies with low proi fits,” Mr Skinner said. The less-profitable comi panies would be faced with ’ i some difficulty in keeping; their labour force. This would be one of the awkward [ effects of the Budget. Mr Skinner said that trade unions would not keep their | wage demands down to 5 per cent. “The Budget does not provide a guideline for wages,” he said. “It provides a guideline for costs.” : He said that he did not be- I : lieve the price control clause ■ would work. Similar legislation had failed elsewhere in [the world and there was no reason why it should not also fail in New Zealand. i More industrial problems were bound to come during the change, from relativity [wage arguments to direct '[bargaining based on productivity. ! Mr Skinner said that it ’’seemed inevitable that less] profitable firms would suffer! as trade unions pushed for, higher wages for their members on the bases of company [ profits. He agreed that the Budget i seemed to leave a lot to the introduction of the Industrial Relations Bill, but said the bill would not solve any pron-

,lems raised by the Budget. It would simply provide the machinery for settling disputes. [ He welcomed the provisions for tax concessions for overtime and shift workers, [although he felt they could have been simplified. Moves to raise the personal allowance and to encourage worker participation in companies were also pleasing.