Closing submissions at wage hearing

Press, 22 February 1977, Page 3

Closing submissions at wage hearing

PA Wellington Wage and salary earners in the last two years had borne more titan their share of the economic burden, the president of the Federation of Labour (Sir Thomas Skinner) told the Wage Hearing Tribunal yesterday. The F.O.L. and the Combined State Service Organisations were making closing submissions to the tribunal which is considering an application for a 12.8 per cent; general wage order. The F.O.L. made the application. Sir Thomas presented a 44-page closing submission. In his summary, he said the submissions the tribunal had heard made it apparent that the real earnings of wage and salary earners “have .declined by a considerable, margin over the last two years." He said that a 12.8 per cent cost-of-living order would not. maintain living standards, “but it will go, some way towards compensating the wage and sa-

lary earner for the decline i in real income.” A cost-of-living order of this amount would particularly lighten the burden where it was felt most acutely — at the level of the single earner family. Sir Thomas said. The claim that New Zealand's economic stability would be affected b\ a 12.8 per cent wage increase had not been established before the tribunal. The problems of inflation and terms of trade would not be worsened “if appropriate economic policies are pursued by the Government.” Events of the last few years had shown only too clearly that economic stability could not be achieved by the blunt weapon of statu'torv wage control. “We submit that the tribunal must take a wider view, of economic stability and on its informed assessment. —t for it can be no more — decide that an order as sought would not be incompatible with economic; stability,” he said. “If such an order necessitates tougher Government remedies or action then that is not a matter for the tribunal. __ __

“We do not consider that in doing this the tribunal would be treating lightly its economic responsibility as do the employers. "Instead we consider it would be a highly responsible action, which would force the Government to take a good, hard look at its economic mismanagement,” he said. “The evidence points to the conclusion that over the last two years the wage and salary earner has borne more than his share erf the economic burden and that other income groups are improving their position and will continue to do so. “The promotion of industrial harmony is a factor io be given considerable weight, particularly as New Zealand's most pressing problem is to tackle the structural weaknesses of the economy. For that reason it is essential that the burden being borne by the wage and salary earner is eased. "In the light of these factors, it is essential for the economic stabilitv and future welfare of New Zealand that a wage order of the amount sought be granted by the tribunal," Sir Thomas said. On behalf of rhe C.S.S.O, | the general secretary of the Public Service Association (Mr W. E. B. Tucker) said the application for a 12.8 per cent wage order was "modest and moderate." Mr Tucker noted that the Government and employers representatives at the hearing had said the wage orders should be "very small,” “very moderate.’’ "as much moderate as possible” and “modest.'’ "The bewildering and persistant evasiveness reflects rhe eeneral imnrecision of

argument against this application,” Mr Tucker said'. "In the submission of the C.S.S.O. the current application is modest, and moderate. Several higher measures! of the increase needed could be, and have been, formu-l iated at this hearing. “The supplementary submission of the C. 5.5.0.; indicated that in order to restore real disposable incomes, gross wages would ■need to be increased by! about 20 per cent. I “The application is thus extremely modest, and even lif granted in full, wage and i salary earners would be 1 making a larger sacrifice in terms of reduced living stan-y dards than at any previous time in New Zealand's history,” Mr Tucker said. Restoration of wages at this time would "not compensate for yesterday's (sacrifice and will not pre-; • vent sacrifices being made , i tomorrow.” “In relation to demonstra-; (ted need and to the current rate of inflation, this appli-1 (cation falls short of previous (orders of this type. ! The current adjustment; iclaimed should be placed ini (the context of nominal • ;weekly wage movements of; ,17.7 per cent, 15.8 per cent,. 9.8 per cent and 11.6 per; ; cent in the last few years. It; should also be placed alongside the massive decline in living standards which has;, occasioned the hearing, and , an annual rate of inflation in excess of 15 per cent in , each of the last two years.” I Mr Tucker said the granting of a wage order would; restore a major part of the ■ 1 economy to a stable basis. 1 I The summing up by Sir ’ (Thomas and Mr Tucker took ■ \ three hours. The tribunal re- '• served its decision, and the t (chairman (Judge Jamieson) said that no one should ' (waste his time asking when I 'the decision would be re-it ; leased.