Still some curbs on wage claims

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 2

Still some curbs on wage claims

’•eu‘ Z tala*. 4 Press Association' WELLINGTON. April 19. The Governments action in introducing the Economic Stabilisation Regulations in August last year had been effective in dealing with “a potentially dangerous situation which threatened the stability of the economy." said the Minister of Labour (Mr Watt) todav.

It was now possible to permit the regulations to expire on the due date, June 30, he said. * I “Over the last few. months, however, the pace of international inflation has ojickened. with its impact i import prices, and the jrgy crisis has created •a problems for the Gov- ' lament.” said Mr Watt. “In this situation it is not soatiNe to return to a posi- 1 , •on where no restraints are ; applied." Mr Watt said that Minis? ters had been holding dis-l, cussions with interested’, groups on the most appro- , Pfiate wage-fixing proce-i dures to apply from July I. ' Commission** role The Industrial Relations; I Act, 1973, established the Industrial Commission to;i adjudicate on disputes of? interest, including wages? The making of genera! wage \ orders was also within its i responsibilities. ! < “Since, however, almost j

all agreements expire on June 30 and are being renegotiated. the Industrial Commission will have a considerable amount of work to do.” Mr Watt said. The Government wished to; give the commission time to settle into these responsibilities without the need to; conduct a general-wage-order hearing "We feel that the increase tn the cost of lining in the : first three months of this year, the inevitable increase in the second three months? and the rise in national productivity, call for a genera wage increase from July 1? It has therefore been decided •to apply a general wage in- 1 ; crease of 9 per cent from July 1, 1974.” said Mr Watt. [ “Al! other genera! wage adjustments wii! be decided by the Industrial Commis? sion but none will be per-; mitted to apply before Janu- ’ ary I. 1975" The commission's powers! would be widened to enable; it to make cost-of-living, orders as an alternative to! general wage orders, but

ronly one general adjustment ••could be made in any period 1 of six months. Mr Watt said that the >'Government was anxious to restore to employers and /employees, freedom to negotiate wages and conditions within the framework of the )' Industrial Commission or ?othe- appropriate tribunal. "This freedom will not,; . however, be untrammelled; as the Government has the; responsibility for maintain- 1 . ing economic stability. Approval needed "Negotiations for improvei. ments to wages and conditions will be freely permitted, provided that any [claims or agreements for increases which exceed onequarter of the preceding' general wage increase will; be subject to the determina-; tion of the Industrial Com-; mission or other tribunal, I -and these will be required to) , consider the impact of any; wage increase on prices and; economic stability.” The commission or tribu-i nal would be authorised to; approve such increases to ;remove or relieve serious) anomalies. Provision would also be •made for the commission or (other tribunal to approvei genuine productivity agree-; ments for individual firms, IMr Watt said. Criteria limit “In any wage negotiations, ■the parties will be able to take into account the condi--1 tions for the particular in-1 dustry. However, they will) not be able to invoke the • criteria upon which genera! I wage orders are based, such! as increases in the cost of) living or in national produc ) ftivity. “The Government is) >resolved that, in the interests of stability, the rule : already written into the Ini dustrial Relations Act that 'collective agreements and awards once made will con- ' tinue in force for a minj imum of 12 months, shall [apply to all wage settle- • ments. "In other words, all such agreements once made, shall; stand for 12 months, except; for increases granted by wayj of i eneral wage order or; cost-of-living order," said! Air Wat’.