Wage rate index rises 11.5 per cent

Press, 14 May 1979, Page 6

Wage rate index rises 11.5 per cent

PA Wellington The nominal weekly wage rates index which shows the movement in adult wage and salary rates was 11.5 per cent higher for the March, 1979, quarter than it was for the March, 1978, quarter. The Government Statistician, (Mr E. A. Harris) said) yesterday that the actual index level was 11.47 per cent for the March, 1979, quarter, compared with 1029 per cent for the March, 1978. quarter. This 11.5 per cent increase in the nominal weekly wage rates index durng the latest March year compares with 9.0 per cent for the shortened year ended the March quarter of 1978, and 17.3 per cent for the year ended the March quarter. 1977. However, it should be noted that from December, 1977, quarter the index had been altered from one which applied to the end of each quarter, to one applying to the mid-point of the quarter. Because of this change, the movements for the four quarter periods ended December, 1977, through to September. 1978, were not for a complete calendar year, Mr Harris said.

The 11.5 per cent increase does not tell the whole story, according to the deputy executive director of the Employers’ Federation (Mr R. E. Taylor).

"This increase is misleading, and does not fully explain other wage movements which have recently occurred, or are about to occur,” said Mr Taylor. “Wage and salary rates have moved by something much closer to 18 per cent than the 11.5 per cent shown by the statistics.” Mr Tavlor said it was im-l portant for the public to realise this fact, at a time, when consumer prices were again accelerating. “It is more correct to look at the private sector rates covered bv the Arbitration Court than the over-all index. This index does not yet include all of the data needed for the final March estimate, yet the Govern-' ment Statistician’s figures' show that weekly wage and, salary rates have increased 15.2 per cent,” Mr Taylor: said.

Last year’s increase was] the lull before a wage explosion which must occur if! workers’ living standards were to be maintained, said the Social Credit economics spokesman (Mr L. Hunter) when commenting an the new figures. The solution to the problem was not a march on Parliament in protest, but action to support Social Credit in applying alternative policies which would stop rising prices and make huge wage increases unnecessary, he said.

The treadmill of wages chasing prices, with the weak unions missing out, was a direct result of the failure by the Government to stop rising prices. Mr Hunter said last year’s 11.6 per rent wage increase was a gross figure and because of tax, the “take home pay” would have increased 7 to 8 per cent. The increase in family purchasing power had to be related to the 17.6 per cent increase in food prices alone.