Some prices lowered after union complaints

Press, 13 November 1982, Page 12

Some prices lowered after union complaints

PA Wellington Wellington Shop Employees’ Union monitoring of prices during the five months of the wage-price freeze has resulted in 1800 cases being referred to the Trade and Industry Department for investigation and possible prosecution. The union's secretary. Mr Graham Kelly, said that although no prosecution had yet occurred as a result of the referrals, a number of the increased prices had been reduced to their original levels after department officials had investigated complaints. Mr Kelly was commenting after the executive officer of the Grocery Manufacturers’ Association, Mr Ernest Newman. had said that grocery manufacturers were not breaking the price freeze. Mr Newman said the union was quoting impressive numbers which could give the impression that prices were being increased illegally. “Although many manufacturers have legitimately passed on certain cost increases, especially those relating to transport, they have absorbed many other increases. "There have been substan-

tial cost increases since the start of the freeze relating to packaging, advertising, horticultural crops and many other raw materials and services, the cost of which cannot be received. "Additionally, many manufacturers have taken lower increases than they are lawfully entitled to in order to observe the spirit of the freeze." Mr Newman said. Mr Kelly said the union's monitoring’ was certainly having an effect in view of the many cases of increased prices being reduced after they were reported to the department. “I do not accept that the manufacturers necessarily have clear slates in this matter, and nor do I accept that retailers are honouring the spirit of the regulations. “The volume of 1800 complaints by us in five months almost equates to the total number of items stocked in a supermarket at any one time. I do not believe that, with that number, the increases were all made within the regulations," Mr Kelly said. If they were, they made a total farce of the price freeze when it was measured against a total wage freeze, he said.