‘Willingness’ on wages

Press, Volume CXIV, Issue 33516, 23 April 1974, Page 2

‘Willingness’ on wages

WELLINGTON, April 22. The reaction to last Friday’s wages □nd prices package had been ’’better than expected.” the Minister of Labour Mr Watt) said tonight.

He -aid that no-one was standing up and theering about the an-, nouncement, but the Government would probably rot have been doing its job properly if anyone had been cheering. There hid been “a wilhr.gness to co-operate" from ewry group Mr Watt had met on Fridav and at the week-end. and in general people seemed to think the Government had acted correctly. Mr Watt said. The Minister said he would row have talks with interested groups before completing some details of the package Some talks would certainly have to be held before the regulations were drafted to bring the announcement into force on July 1. Mr Watt agreed that the regulations must define the

criteria to be considered by the Industrial Commission when it considers applications for wage increases beyond 11.25 per cent. Under the Government’s scheme, ail workers Ret 9 per cent extra on Julv I. and they may negotiate an-

other 2.25 per cent with their employers, but any increases

beyond this must be approved by the commission. ■ Today Mr Watt said that [ economic stability anti the; effect on prices would be the i main measures to be considered by the commission. The regulations would give the commission some flexibility to consider productivity agreements and other ways by which wages could be increased without upsetting such things as prices, stability. and relativities. Mr Watt was unable to give the total cost of the wage increase announced on Friday, but he estimated it would add 3 or 4 per cent to the cost of living. Asked how the Governemnt had settled on a wage increase of 9 per cent. Mr Watt said it was a mixture of cost-of-living increases and productivity increases, [but he declined to give an [analysis. Mr Watt said he would have talks with the Federation of Labour on the problem of the many awards which would expire simultaneously about June 30 next year, but he did not regard this as a major problem.