Wages bargaining might be off until mid-1975

Press, Volume CXIV, Issue 33480, 11 March 1974, Page 2

Wages bargaining might be off until mid-1975

(New Zealand Press Association)

AUCKLAND, March 10. Trade unions are not going to be free to negotiate wages until the middle of next year, says the industrial reporter of the “Auckland Star.”

Instead, they win receive three cost-of-living adjustments between now and June, 1975, but they will be able to negotiate conditions and allowances.

This is the package the Government is trying to tie up with the Federation of Labour and the Employers’ Federation.

Such a deal would allow the industrial commission, set up under the new Industrial Relations Act, to work.

The commission would be given the authority to issue cost-of-living adjustments — one for the six months ending this June, and two sixmonthly adjustments in the coming year.

Other issues It would also be the body to make decisions where employers and unions fail to agree on issues other than wages. The parties would be free to amend awards on such matters as holidays, altered working hours, allowances for shift work, and other special. working conditions. They could agree on productivity increases, so long as these did not alter the basic wage rate but rather came in the form of bonus payments. This package would overcome the vexed question of wage relativities, the reporter says. Rates, which should be near to an acceptable relative position, would rise by the same percentage under the cost-of-living adjustments.

But freedom to negotiate would allow recognition of local working conditions, which differ from plant to plant or from area to area.

A full return to the free wage-bargaining position would occur from the end of June next year.

“Good thing?”

Some industrial sources say the package would only be putting off the evil dav when wages again go beserk — but that day might not arrive.

Wage and salary earners may decide that if their basic wage rates are protected from increases in the cost of living, and there is freedom to negotiate conditions, they are on to a good thing. Trade union officials would welcome the respite from continual argument with emplovers over wage increases: their efforts could be concentrated on improving their members’ working conditions and welfare.

It appears that across the Tasman, the F.O.L.’s counterpart, the Australian Council

of Trade Unions, has agreed with the Government there that adjustments to wages should be made to compensate cost-of-living rises.

Alternatives There were alternatives to the New Zealand package. The Government could have opened the door on wages, but it has decided not to. Serious consideration was given to allowing the F.O.L. to take any union award to the employers (and then to the commission if agreement was not reached) to settle a wage increase. That increase would have been a guideline to the rest of the country. The idea apparently was scrapped because it would have taken months for the following unions to settle their awards.

Some pressure was put on the federation to talk the Government into allowing an application for a general wage order. But consideration would be required back to 1970 when the last order was granted — and wages had increased faster than the cost of living until the August 8.5 per cent wage adjustment.

“Not equitable”

The attitude of the president of the F.O.L. (Mr T. E. Skinner) is that since the restrictions on wage increases were imposed in August, the incomes of other sections of the economy have risen faster than that of wage-earners. “The restrictions were on the basis that all incomes would be controlled. It is obvious this has not been done. We’ve co-operated —• but it is costing us too much. We’ll carry our share, but no more than our share,” he said. So, it seems that Mr Skinner will go along with a proposal to protect wages against cost-of-living increases and at the same time allowing wage and salary earners to negotiate a share in the country’s profitability. Employers’ view The Auckland Employers’ Federation executive director (Mr P, J. Luxford) says he

would need to see the precise details of any new system before saying whether the federation considered the system reasonable.

Some employers indicate they will go along with some freedom to amend awards — but just how far this freedom extends would need to be spelled out clearly.

Details of the package deal might be released by the Government early next month.