Employers back P.M.
PA Wellington If pay rates for the big construction programmes under the Government’s growth strategy programme flowed out into'industry in general it would spell disaster for many businesses, said a spokesman for the -Employers’ Federation. Commenting on the Prime Minister’s economic address at Orewa, Mr B. F. Cook, director of communication for the federation, said such a spillover would make it much more difficult for New Zealand to overcome its economic difficulties.
He said employers would be pleased to see that Mr Muldoon recognised that the prospect that higher pay
rates for the projects could start a wage spiral, which was one of the potentially most explosive industrial relations issues to face the country for some. time. “Demand for labour, particularly skilled labour, will be high. Wage rates on the projects could be pushed up accordingly. It is_ essential that project rates not be allowed to flow out into industry in general,” Mr Cook said. ‘ ’ r He said that the federation, agreed with Mr Muldoon that increased economic activity held the key to reducing unemployment. “In fact, it holds the key to New Zealand’s future, and the sooner we see more of it the better.”
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Press, 13 January 1982, Page 6
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198Employers back P.M. Press, 13 January 1982, Page 6
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