Business Heads worried by State pay rates

Press, 21 October 1980, Page 6

Business Heads worried by State pay rates

Canterbury business leaders are worried about the “excessive” wages being paid in the State Services'and local government. A statement by the Canterbury Business Council says the “pace-setting by the State Services is. a significant factor in New Zealand’s. economic difficulties.” The council is a newly formed organisation including representatives from the Canterbury branches of the Chamber of Commerce, Employers’ Association, Manufacturers’ Association, Retailers’ Association, and the North Canterbury provincial district of Federated Farmers. A spokesman denied that it had been formed as a counter to the Canterbury Trades Council. • ■

■.. The statement said that equality between private and State sector wage rates was essential if the Government was to reduce inflation. . The aim of the State pay determination legislation was to achieve fair comparability. However, the council asserted that adjustments to State rates were being applied to a base rate already higher than than of the private sector. “Many sections of industry and commerce are facing claims that their rates are significantly less than those payable to State and local government employees. This results in further excessive increases in the private sector which creates more unemployment,”; the statement said. ■