Public ‘at risk’ from wage demand effects

Press, 30 August 1980, Page 6

Public ‘at risk’ from wage demand effects

The New Zealand public runs a grave risk that many companies will not be able to meet unrealistic wage expectations generated by the settlement of the drivers’ award, according to the president of the Canterbun Emplovers' Association. Mt C. W. White. Mr White said that 13 per cent might be considered a reasonable level of increase, but there was a difference between “reasonable” and “realism.” Although there were signs that the drivers’ settlement could be. too high, some people were arguing for increases' of more than 13.5 per cent. “Those responsible for pressing these claims must

be lacking in realism and mus' be 'oblivious to the delicate balance between maintaining _ incomes and preserving jobs," said Mr White. Costs of wages, raw materials. services and the costs of borrowing to finance the increases were compounding employers’ problems. A commonly held view was that the ability to increase exports would determine New Zealand’s ability to provide jobs. “But exporters say that devaluation of currency and cost increases will cancel many exporters’ marketing edge,” said Mr White. It was essential that reason and realism be kept in mind during wage negotiations. .