Employers look to cool industrial problems

Press, 29 July 1978, Page 23

Employers look to cool industrial problems

P A Wellington The introduction of a “peace” clause to industrial agreements is being looked at by the Employers Federation, according to its president (Mr K. J. Dobson). He said such a clause, written into an agreement, would demonstrate the willingness Of employers and workers to abide by the spirit of an agreement, and follow agreed disputes procedures. “We hope it would take a lot of heat out of some industrial situations,” he said. Mr Dobson and the federation’s executive director (Mr J. W. Rowe) have met the Prime Minister (Mr Muldoon) and the Minister of Labour (Mr Gordon) and discussed industrial and labour problems. Mr Dobson said the federation was seeking long* er-term award agreements, and would explore the possibility with the

» unions, He said also that employers would scrutinise more closely the “narrow or historical relativity arguments often ; used by unions to justify wage increases.” Employers, he said, would in- , troduce into negotiations factors such as their abils ity to pay, productivity performance, and employment preservation. Criticising the recently settled drivers’ award, Mr Dobson said: “Wage settlements of the size concede! (11 per cent) are clearly too high for industry and the economy to sustain. “A large part of that settlement was attribute able to catch-up elements. — a fact which clearly has implications for following settlements,” he said. Mr Dobson said employees were worried about the low ebb in industrial relations, and had discussed with Mr Muldoon ways in which they might

be improved. These ranged from problems associated with the general wage order to the need for greater employer unity. “Recent losses in production from industrial unrest are of no help in solving economic problems and frivolous industrial action in recent months, without recourse to available disputes procedures are of serious concern to both employers and the Governemnt — especially where such action poses a serious threat to increased export competitiveness.” He said it was expected employers would demonstrate a more positive approach in award negotiations this year. “The success of free wage bargain* ing depends on this.” But if employers conceded settlements which were too high, it would have disastrous implications for New Zealand’s economic recovery, and the battle to lower the rate Of inflation.