Union man supports call for pay rise

Press, 6 March 1984, Page 13

Union man supports call for pay rise

PA Wellington Workers demanded a wage increase because it was “quite obviously unfair” to have the freeze relaxed on prices while it still applied to wages, said Mr Ron Burgess, chairman of the Combined State Unions, recently. “However, they also demand an increase because the freeze has not been the great success that the Government claims,” he said.

“During the freeze, the rate of inflation fell, but we have paid a heavy price for that

“Pay packets have been eroded, unemployment has soared, the Government has increased its debts, and jobs have been cut right through

the economy. Balanced against the rate of inflation, the other failures in economic policy mean that over all the freeze was a disaster rather than a success.” He said the rate of inflation was now 3.65 per cent, but between the June quarter of 1982 when the freeze came on and the end of 1983, prices rose 101 per cent “For our members this has been a 2%-year wage freeze,” he said. “They last had a wage increase in November, 1982. Between then and the end of 1983 prices rose 19.4 per cent That is an enormous burden for any sector of the community to carry."

The 1982 tax cuts had led to a Government deficit of

33000 million a year and was inflating public debt at an alarming rate and increasing the pressures to cut back and erode health, education, and other social services.

“The great claim for the freeze was that by bringing inflation down and by holding labour costs we would see a growth in jobs. That has been a very sick claim.” Mr Burgess said a wage increase would not solve all the problems but it was one step towards getting the economy back on an even keel.

“It is not just the Federation of Labour and the Combined State Unions that demand a wage increase — the economic record demands it as well.”