Iran deadline imminent but meat pay still unsettled

Press, 28 November 1979, Page 1

Iran deadline imminent but meat pay still unsettled

Freezing industry wage negotiations remain unsettled, shrinking hopes of meeting the December 8 deadline for the first shipment in the $lOO million meat deal with Iran.

After talks yesterday, the secretary of the Meat Workers’ Union (Mr A. J. Kennedy) said: “We made no progress at all. The day was a dismal failure and the situation is critical.” Mr Kennedy said there had been no discussion of the deadline for the 2500tonne Iranian shipment. Although award talks would resume today, he was not hopeful of a settlement in time to clear the way for negotiation of an agreement which would allow ritual Muslim halal killing to start. The executive director of the Freezing Companies’ Association (Mr P. D. Blomfleld) was less pessimistic last evening. Discussions yesterday had centred on the employers’ 10.4 per cent across-the-board wage offer and the union’s claim for an 11 per cent increase for incentive workers and 16 per cent for hourly-rate workers, he said. Though nothing had yet been settled, Mr Blomfield said, he hoped negotiations could proceed to a settlement today. The Minister of Labour (Mr Bolger) last evening refused to comment on possible Government intervention to save the Iranian deal. Earlier there had been speculation that such action would follow if the parties failed to settle the award yesterday. Mr Bolger said: “I am disappointed the parties were unable to make’ significant progress in the award talks but it is not essential that the reso-

lution of Iranian Muslim killing be held up. "It is perfectly competent on both parties to agree to that before completion of the award talks, if they are taking longer than originally intended,” Mr Bolger said. "It is important that both parties recognise the importance of the new market and of reaching the deadline for the first shipment.” Mr Bolger said it was quite unnecessary for the award to be linked to the Muslim killing: “All that is happening is that the union is using it as a lever.” He hoped both sides would agree today to allow the Muslim killing to start. The general manager of the Meat Board (Mr H. C. M. Douglas) said yesterday that killing for the Iranian market should have begun on Monday if contract terms were to be fulfilled. The contract called for the first shipment to be discharged in Iran between December 22 and December 26, he said. To meet that target the ship which would carry the lamb to Iran should sail on December 8. The chairman of the Meat Board (Mr Charles Hilgendorf) said last evening: “It defeats me why people who are quite sensible and logical in the rest of their thinking tie the question of Muslim killing to the wagerate negotiations.” The danger of losing the Iranian contract had enormous implications for the whole of New Zealand’s baiance-of-payments diffi-

culties which were so closely tied to the whole question of inflation and unemployment. Iran wanted New Zealand lamb now. Iran had a lot of sheep but its meat became available from about May. so it wanted New Zealand meat in the early part of the year. Mr Hilgendorf said. One of the most significant aspects of the Iranian lamb deal is the effect that the removal of the meat will have on other markets where New Zealand trades. The lamb could be sold on other markets if it does not go to Iran, but the extra quantity of meat on those markets could result in an over-all lower return. Problems over payment by Iran for the first shipment of lamb have been solved. The Iranians, whose first payment was in letters of credit drawn on American banks — subsequently frozen by the United States after the seizing of hostages in Teheran — had now agreed to pay in a European currency, said Mr B. Freeman, marketing manager of Thomas Borthwick and Company, managing agent for die deal, last evening. Mr Freeman said the vessel, the Montreal Star, would remain at Auckland until she got her load, even if the part of the contract dealing with the first delivery dates had to be redrawn. From Wellington it is reported that the five-week-old Gear Meat Company stoppage at Petone is over. Killing will resume on one mutton chain this morning.