Trade unions 'intransigent’

Press, 30 August 1980, Page 27

Trade unions 'intransigent’

PA Wellington Some trade unions have adopted an “intransigent and illogical” attitude towards settlement levels in the present wage round, according to Mr J. W. Rowe, executive director of the Employers’ Federation. In recent weeks there had been considerable speculation over likely wage-increase levels, Mr Rowe said. “Much of this conjecture has stemmed from the various interpretations by the Government and unions as to what constitutes a ‘reasonable’ level for wage settlements,” he said. The most disturbing aspect of this speculation had been the apparent acceptance of 13 per cent as a minimum guideline. “It is illogical for various unions to claim that, because the general drivers’ award was settled at 13.5 per cent, this level should now be regarded as the starting point for ne-

gociations in other industries,” Mr Rowe said. If employers were forced to settle at 13 per cent, combined with the 4 per cent general wage increase, the result would be more redundancies and extra scaling down of industry’, said Mr Rowe. Some industries might be able to meet wage demands in the vicinity of 13 per cent, but on!y r because the extra ’costs could be passed down the line to consumers, he said. However, many other industries, particularly those in the competitive export sector or in the South Island. were not in a position to pass on costs. The only option left to those industries was to shed labour. “We cannot afford to have an arbitrary guideline, such as 13 per cent, established in the public mind as reasonable for all wage settlements. Inevitably, many should fall below 13 per cent,” said Mr Rowe.