Employers fear wages spiral

Press, 14 January 1982, Page 4

Employers fear wages spiral

PA Wellington Any wages spiral started . by planned big development projects would be obvious by the. end of this year, said the communications director of the Employers’ Federation. Mr Barrie Cook, yesterday. The spiral would be offset by contractors on the big projects paying higher wages to attract, scarce skilled tradesmen to the job sites. Mr Cook said, “The potential is there. By the end of this year we will know whether we can cope or have an explosion. “Unless we get our act together meantime, project contractors chasing skilled tradesmen will send wage

rates sky-rocketing and there will be immediate pressure on employers outside projects to raise their rates.” Mr Cook said that higher wage rates on the big projects must not be allowed to flow on into industry generally. This could spell disaster for many businesses. Employers’ hopes for avoiding the wages spiral rested on the Government's plans for extra training pro- . grammes, attracting New Zealanders back from overseas, immigration, and the overseas prefabrication of equipment for the project. On Tuesday, the Prime Minister (Mr Muldoon) said it was essential that the' big

projects did not start a wages spiral. “Until now negotiations between employers, unions, and the Federation of Labour have been satisfactory in this respect," he said.

Mr Cook said that he could not estimate the shortage of skilled tradesmen for the project or its effect on wage rates. A survey by the federation of Otago and Southland employers in June, 1981. had suggested that there were 324 local vacancies for skilled tradesmen. “We believe this is still the situation and do not see any reason why it does not apply throughout New Zealand,” Mr Cook said.