Union groups unite on wages bid

Press, 15 April 1980, Page 1

Union groups unite on wages bid

PA Wellington The Federation of Labour and the Combined State Unions decided last evening to ask the Government for an immediate general wage increase. They would not say how much they would ask for, on'the ground that disclosing the figure would prepare the Government. However, the president of the F.O.L. (Mr W. J. Knox) said that wages had fallen behind inflation by almost a double-figure amount, although that did not necessarily indicate the size of the increase sought. . _

The two union groups want talks with the Government within the next two days to secure an in-

crease to compensate for the record inflation of 18.4 per cent in the year to March 31.

Any refusal by the Government to take part in talks could jeopardise talks between the F.0.L., employers, and the Government aimed at setting a wage-fixing policy, which will be held on April 24.

After yesterday’s meeting Mr Knox said: “The Combined State Unions and the Federation of Labour have, agreed to a joint approach to the Government for an immediate cost-of-living increase. “There is no figure being ■ mentioned at this stage. “We will discuss with the Prime Minister (Mr

Muldoon) what we have in mind, because if we mention the figure now we will only prepare the Government for any approach.

“We feel that it is necessary to give back-up evidence to support why we think the Government should bring down a cost-of-living increase,” Mr Knox said. At the end of the meeting Mr Knox said that he would immediately get in touch with the Government to seek a meeting within the next day or two. It was time the Government realised that workers would no longer just accept the Government allowing price increases without first considering

the extra burden it put on wage and salary earners, Mr Knox said. The Government had “lifted the lid” on price control, and it was obviously going to let private enterprise make its own level of price increases, he said.

The latest price increases were savage.

People on low and fixed incomes, old people, and the unemployed all had to pay the same prices for the goods they needed to survive, Mr Knox said.

The president of the Combined State Unions (Mr D. H. Thorp) said that there had been no compensation for the substantial price rises since the 4.5 per

cent General Wage Order last September. Mr Muldoon has not yet received a request for a meeting.

He said last evening that he had no comment to make on the F.O.L.’s announcement that it would seek an increase.

“I guess they will be in touch with me in the usual manner,” Mr Muldoon said.

A spokesman for the Minister of Labour (Mr Bolger) said that Mr Bolger had not been approached by the F.O.L.

Mr J. W. Rowe, executive director of the Employers’ Federation, said yesterday that unless New

Zealand was prepared to work towards a slowdown in the rate of inflation it would be saddled ■with crippling economic and social problems.

"When inflation accelerates, as it appears to be at present, interest rates rise and this discourages investment, upon which both jobs and living standards depend,” Mr Rowe said.

“Accelerating price rises also put great pressure on business cash flows, if only to replace stock and maintain the present level of activity. “Likewise, when inflation speeds up, there is increasing pressure for wage increases, which only has-

ten the process of job destruction and lift the level of unemployment,” he said.

However, some of New Zealand’s top economists believe that New Zealand’s double-digit inflation will hit 20 per cent by midyear, and it will be “an uphill slog” to reduce the rate.

Mr L. C. Bayliss, the Bank of New Zealand’s chief economist, a former member of the Prime Minister’s "think tank,” and a constant critic of the Government’s economic policies, said yesterday that inflation would be 19 per cent plus for the year ending June 30.