THE PRESS TUESDAY, DECEMBER 4, 1979. Peace now vital in meat works

Press, 4 December 1979, Page 20

THE PRESS TUESDAY, DECEMBER 4, 1979. Peace now vital in meat works

To most of the freezing industry in New Zealand industrial peace seems to have returned since the settlement of the meat workers’ award and the conditions of employment of the Iranian slaughtermen who are required for the killing of lambs for the Iranian market.

Like too many other export killing seasons this season has started with its share of industrial troubles. This season, however, the troubles have been less serious than on some earlier occasions. It seems a pity that the negotiations over the award cannot always be completed before the season begins to ensure that exports begin to flow without interruption

One aspect was particularly disturbing in the most recent round of negotiations This was the apparent endeavour by the union to hold up an agreement on conditions of employment of the Iranian slaughtermen until the terms of the award had been settled.

Although negotiations may be expected to exploit every opportunity to gain ground, many people would agree with the chairman of the Meat Board. Mr Hilgendorf. that the linking of an award settlement with a start to killing for Iran, which has important implications for the future of the lamb market, was bordering on industrial blackmail. It may be said that, as in love and war. anything goes in industrial arguments: but. if the Meat Workers’ Union is interested in improving the impression it makes on the public, it should be reviewing how it reached the conclusion that the Iranian question should be used as a lever to get the main award settled

In the present circumstances many people must wonder whether supplying Iran with meat is so important. From a purely economic point of view, the Iran lamb deal is very important for the farmer, the economy, and for the longer-term interests of meat workers and others employed in the meat industry and industries servicing farming and the meat industry.

The significance of the sale of 45,000 tonnes of lamb to Iran this season and of large quantities in the three

succeeding seasons is not so much in the returns that will be derived from the sales themselves as in the impact that the sale of this meat is likely to have on returns from other markets. Farmers will remember the neatly documented arguments of Professor B. P. Philpott when he was a member of the staff of Lincoln College: he showed that, for each one per cent of lamb supplies diverted from the British market, prices there would improve by a specified amount. The same should apply today. The point is that total earnings from lamb in all markets are likely to be greater as a result of the diversion of lamb away from the British market to Iran. The diversion could also help New Zealand in the difficult negotiations with the European Economic Community about access of sheepmeats to the European market.

It is to be hoped that now freezing works in most parts of the country are working normally industrial peace in this most important industry will be maintained throughout the rest of the season. There is reason to believe that, after a slow start to the season, mainly due to seasonal and climatic conditions, the pressure to have stock killed will rapidly increase in the near future. Some works may not be able to cope with all of the stock offering.

In these circumstances it is most important that works handle stock as expeditiously as possible. Although feed supplies in most farming areas are very good at present, such a favourable supply of feed may not last. Industrial troubles would only aggravate problems caused by having stock ready for slaughter but held on farms with a dwindling supply of feed. All sectors of the farming industry and sectors serving it need to work conscientiously at all times if the best advantage is to be taken of market opportunities. The recent decline in wool prices since a peak was reached about a month ago is just another example, if it is needed, of the vulnerability of New Zealand to market fluctuations. When the market is good and the supply is good, every chance must be taken to make the best of an advantage.