Pay-fixing changes

Press, 25 November 1982, Page 6

Pay-fixing changes

PA . 7. Wellington The Government announced yesterday that.it intended to change methods of pay-fixing for State servants, a move which the Combined State Unions.'has called the most serious attack on wage-fixing in recent years. . . The Minister of State Services, Mr Thomson, said amendments the Government was considering for legislation would give a more realistic “market rate” for the salaries of State servants. The '.amendments, would make three main changes: annual adjustments “would be of lesser importance,” a pay research programme

providing data on State and private sector pay rates would be used as the? basis for. fixing public servants’, wages ana the importance of recruiting and retaining staff would be an important criterion 'in pay fixing. The chairman of the Combined State Unions, Mr D. H. Thorp, said the proposed changes were designed to use the present employment situation as a means of

depressing pay rates. He said that State wagefixing procedures were agreed upon in 1977 and the Government was being a bad loser, using its powers to change the law for its own purposes. Mr Thomson said that a

■ number ,of events had hap- ; pehed since discussions earlier this year between the Government and the unions, which had influenced its thinking on pay rates. These . included the introduction of the wage-price freeze and the unions’ decision to withdraw support for' the pay research programme providing comparisons between . State and private sector pay rates.

He said the Government presented its proposals last week to the unions in the hope they could enter into “meaningful negotiations.” Mr Thorp said the unions would resist “this blatant attempt" -to change the agreed provisions.