Many ‘grey’ areas in wage-price package

Press, Volume CXIV, Issue 33515, 22 April 1974, Page 14

Many ‘grey’ areas in wage-price package

u Zealand Press Association

AUCKLAND, April 21.

Many undefined “grey” areas in the latest Government stabilisation package have become apparent during the week-end.

Trude unionists and employers say they will be unable to assess the precise effects of the measures until they are sne'led out in much more detail. Among the most serious ommissions complained of were — The Pay Research Unit, which is supposed to play a key part in solving the problems of relativities, both between the public and private sectors and between different occupa tional groups, is at present defunct. The criteria which will guide the Industrial Commission when it examines any claims for more than ( the prescribed improve-! ments in wages and conditions have been stated only in very general terms. The Government has not yet decided exactly what procedure to follow on back-dating of award--and agreements which will be negotiated during the next 12 months. The Government has not yet decided what steps, if any. to take to apace out the expiry of agreements and awards so they do [ not all have to be nego- [ tiated at once. Minister’* View The Minister of Labour (Mr Watt) who was in Auckland at the week-end. said several ' of these matters would be

discussed with unions and employers during the next few weeks. “It is true.” he said, “that the Pay Research Council has never met since it was established. and that the Pay Research Unit is not functioning at present, but steps have already been taken to rectify this position. “I hope the Pay Research Council will be able to meet in the near future and as recently as last week I obtained an assurance from the State Services Commission; that the Pay Research Unit would be got going again.” Important role The unit would have a very important part to play in sorting out relativities prob-i lems, and it must be as efficient and effective as possible. Mr Watt indicated that increases beyond the prescribed; limits would not be lightly: approved by the Industrial Commission. “Where the parties can agree on improvements i which involve more than a 2.25 per cent increase it will.! of course, be considered by I the commission on its| merits.” he said. “But the commission will; have to take into account,; among other things, the effect of granting any increase on; the stability of the economy “It would, for this reason,; no doubt be reluctant to I agree to any increase which would upset relativities and; result in widespread applications for similar increases. “But at this stage I cannot'

be more specific on precisely how the commission will reach its decisions.” Back-dating Mr W’att said he had not i yet decided what steps to [ take regarding back-dating of ■ agreements made under the new system. Nor had any decision been 1 reached as to whether steps would be taken to space out the expiry of awards and ■ agreements virtually all 400 i of which will suddenly come cup for negotiation on July 1 : as things now stand. “I would be most reluctant,” he said, “to interfere with the normal procedure whereby a new agreement applies from the date the old , agreement expired. “Because of the unusual circumstances that will apply in this case, however. 1 can see it will be necessary to give the situation some special consideration.” I These questions would be discussed with employers and I unions. i Points explained Mr Watt also explained several other aspects of the ■ package. The figure of 9 per cent for - the General Wage Order had, ■he said, been calculated to I offset the effects of cost-of- , living increases and improvements in productivity since ' the last general wage adjustment six months ago. “We added together the : known increase in the cost of living for the March quarter 1 at 2.5 per cent, an estimate I of the increase in the cost of living for the June quarter, and a stab at the productivity increase so far this

Agreements now the subject of negotiations would not expire until July 1 and. consequently, would be dealt . with normally under the new I system. The General Wage Order application submitted by th? Storemen and Packers’ Union in March (believed to be for about 22 per cent) would automatically be deferred until January- 1 next when the Industrial Commission would consider the question.

Usual way Employers should pay the , 9 per cent General WageOrder in the usual manner provided for under the General Wage Orders Act. This makes it compulsory for the order to be added to all award rates but leaves it [open to the discretion of the employer whether it should be added to above-award rates or margins.

The 2.25 per cent limit imposed by the Government on tree negotiations will apply to conditions as well as wages. A formula devised by the :>ld Remuneration Authority Would be used, Mr Watt said, to assess the financial worth of improved conditions such as longer holidays. The new price control system will replace the old Stabilisation of Prices Regulations which will expire on it Julv 1.