Wages talks to resume today

Press, 15 July 1980, Page 1

Wages talks to resume today

NZPA Wellington The ball will rest in the Government’s court when a wages conference set up more than two months ago reconvenes in the Beehive today. The Acting Prime Minister (Mr Taiboys) and the Minister of Labour (Mr Bolger) will sit down at 9 a.m. with leaders from the Federation of Labour and the Employers’ 'ederation in an attempt to .each some finality on a package that could radically change New Zealand’s system of fixing wages. It is unlikely, however, that agreement will ,be reached on what both Mr Taiboys and Mr Bolger have described as “farreaching” and “complex” proposals which emerged from investigations by a working party. Mr Taiboys indicated last evening that the Government would need more time.

“There will certainly be further close study by the Government,” he said.

He denied that the parties were told at an informal meeting on Sunday evening that any decisions would have to aw; it the return of the Prim'' Minister (Mr Muldoon) on Wednesday from the

South Pacific Forum. But he said that Mr Muldoon clearly had an “interest” in the discussions.

The president of the Federation of Labour (Mr W. J. Knox) has previously made it clear that he wants some answers from today’s meeting to take to a . pedal F.O.L. conference tomorrow. The F.O.L. has suggested an innovative package which would radically change the nay-fixing system if implemented. It proposes resolving the vexed question of wage relativity by introducing a “vertical” relativity system in each industry, as against the present “horizontal” relativity system based on occupations. The suggestion means

that a tradesman in one industry might earn a different wage fr >m that of a comparable tradesman in another industry.

The F.O.L. scheme would have unions combining into about 40 groups to negotiate with their employers over margins for skill and responsibility over and above a minimum wage determined by the Arbitration Court. The F.O.L. also proposes an option for regular cost-of-living adjustments, either through partly indexing wages to inflation, or by applying to the Arbitration Court for general wage orders. While there appears to be little hope of implementing such far-reaching changes before the coming round of wage negotiations, even if agreement in principle can be reached today, the Government will ’ need to give some firm indications if the momentum of the conference is to be maintained.

Index pay rise in Aust. — Page 8.