F.O.L. review of link with Mr Gordon

Press, Volume CXVI, Issue 34128, 14 April 1976, Page 2

F.O.L. review of link with Mr Gordon

r.Vew Zealand Press Asxoctathm) AUCKLAND. April 13. The national executive of the Federation of Labour will review its relationship with the Minister of Labour (Mr Gordon) next week because of the new restrictions on redundancy payments.

Announcing this today, the president of the F.O.L. (Sir Thomas Skinner) said: "This is the first time any Government has brought down an Order-in-Council or an act affecting industrial relations without previnuslv consulting the F.0.L.”

Mr Gordon last night gazetted regulations freezing redundance agreements and limiting future claims to one week’s pay for each year of service. The restriction will last until the end of next year — when the Government expects to have legislation to cover the issue.

Sir Thomas said the announcement was another blatant example of the Government’s complete disregard for Parliamentary democracy.

Evidence had been heard from all interested parties on the previous Government’s redundancy bill by a select committee, and was being prepared for submission to Parliament.

“Now, without any discussion whatsoever, the National Government has brought down regulations by Order-in-Council. and completely ignores the elected representatives of the people,” he said.

The F.O.L. had not been consulted, and it would not submit to such “undemocratic procedures.” which affected the livelihood of union members, without the strongest protest. “The regulations set a

Win-stone dispute

Clarification sought

maximum below many already negotiated redundancy agreements, and make no provision for the Industrial Commission to take into account the relativity in agreements." said Sir Thomas.

“In fact, it prohibits the commission from considering other redundancy agreements already freely negotiated. This will cause widespread dissatisfaction and industrial unrest . . .”

Industrial sources say the Government move appears to have been precipitated by the dispute between Winstone. Ltd, and the eight Auckland unions which have been pressing it for a redundancy agreement. Winstone suspended 700 employees. and builders dependent on supplies from the firm issued 3000 lay-off notices when the eight unions began calling for strikes in support of their claims. The notices were withdrawn when the stonpages were called off. The unions were claiming three weeks pay for workers dismissed after one year’s service, with an extra week’s pay for each subsequent year. Winstone offered the same payments as negotiated last month between the F.O.L. and the Master Builders’ Federation (a maximum of two weeks after one year). The 700 men suspended by Winstone will meet today to discuss Mr Gordon’s announcement.

The chairman of the Road Contractors’ Federation (Mr W. D. Finnie) welcomed Mr Gordon’s announcement, but called for a clearer definition of redundancy.

For example, men employed on a specific contract in construction did not necessarily become redundant once that contract ended. Mr Finnie said.

On big projects such as the Twizel scheme, employees frequently received a lump-sum payment at the end of the job, but this was designated as a retention payment, rather than a redundancy payment. It was designed to ensure that men received employment up to the end of the contract and that the employer had a continuous supply of labour. No payment was made if the employees did not stay until the last day of the particular contract.

Mr Finnie said he hoped the new regulations would have a definition that would clarify what redundancy was.