Decision on drivers this week

Press, 2 October 1979, Page 1

Decision on drivers this week

PA Wellington The Arbitration Court hearing of the General Drivers’ Award will resume on Thursday morning and the outcome of rhe key wage case could be known by Friday afternoon. Judge J. R. P. Hom yesterday agreed to an adjournment sought by the employers but would allow only two days, not the three they wanted.

The Court, consisting of Judge Horn, Mr D. Jacobs (workers’ representative) and Mr P. L. Oldham (employers) would have Thursday afternoon and Friday to “confer, consider and decide” after hearing submissions from the employers, the Federation of

Labour and the Drivers’ Federation, said Judge Horn.

The president of the F.O.L. (Mr W. J. Knox) opened his submissions, saying that the future of the arbitration system depended to a large extent on the outcome of the case. “It is essential the Court clearly demonstrates its independence from the Government in determining wage rates.” The award was referred to the Court as a partial settlement on Friday.

Three questions must be decided:

— The percentage wage increase.

— The size of service allowances.

— The term of the award. Both sides originally settled on 11 per cent, but the drivers are now claiming 13 per cent and the employers are offering 9.5 per cent. The drivers want the award to run from September 11, 1979, to July 5, 1980, and for service allowances to start at $5.20 after a year and rise to $7.20 after five years. The employers have offered a 12-month award from September 11 and allowance increases, starting at $1.92 (now $1.66) after one year, and rising to $7.68 after seven years. Other matters have been decided, and in order to

speed what Judge Hom said is an urgent matter, the Court is having the award typed with only the three additions to be made. The advocate for the employers (Mr D. Patten) asked for an adjournment because he said the F.O.L. had introduced the concept of a minimum-living wage with its submissions which asserted an average family now needs a gross basic wage of $l6l a week. The F.O.L. arguments were not relevant, he said, but if the Court decided otherwise the employers would need until Friday to prepare submissions. However, they could proceed with the main issue. Judge Hom said it would

be “very foolish” to disregard the F.O.L.’s submissions and said the employers could reply to them on Thursday. “I know it is rushed but we want to get a decision by Friday,” he said. The president of the Drivers’ Federation (Mr K. G. Douglas) said the employers knew last week that the F.O.L. would present supporting submissions. There was a “real sense of urgency” about resolving the award and neither the drivers nor the F.O.L. was trying to use the drivers’ case to present a general Wage Order hearing to the Court.

Mr Knox said that even if the drivers got 13 per cent, the settlement would only bring them 90 per cent of what the F.O.L. considers a minimum living wage. Mr Douglas said it was fallacious to compare percentages. Thought there might be bigger percentage increases in the drivers* award, other wage rates remained above it. "It dethe 01(1 ac *age that 10 per cent of an elephant is greater than 20 per cent of a mouse.” The drivers’ case for a Ihort-term award was t'mply that there was trano back-dating, r e loss of r : me between »xn.-v s->d wu menl ; awards sine- 19,— had |.;ectively cost drivers

four years of wage increases, he said. The Government and the F.O.L. will meet today for important exploratory talks on a new incomes policy. The Acting Prime Minister (Mr Taiboys), the Minister of Labour (Mr Bolger) and the Acting Minister of Finance (Mr Templeton) are expected to be present. Mr Bolger would not comment last evening on the substance of the talks, but sources indicated they would centre on reports from departmental officials setting out the Government’s case for such things as taxation and benefits to be taken into account when arriving at a practical figure for a minimum-living wage. The F.O.L. is not expected to reply at this stage. Mr Bolger is due to leave New Zealand on Friday for a South Pacifio Commission meeting, but he may cancel the trip.