Most wage earners ‘better off’ now

Press, 7 March 1984, Page 2

Most wage earners ‘better off’ now

Not all, but the great majority of wage earners were better off now than before the wage-price freeze, said the director of the Employers’ Federation, Mr J. W. Rowe, in Ashburton yesterday. Against that sort of background, he told the conference of the Retailers’ Federation, there was really no case for increasing wages. However, he conceded that other factors could be involved. The important thing as New Zealand emerged from the freeze was that people dropped their expectations. There were years of hard work ahead, he said. The Federation of Labour had been offered either a constrained wage-round or a general wage order, never both. Indications were that the Government would accede to the F.O.L.’s wish " for a general wage order. Mr Rowe said that after the introduction of voluntary unionism there had been fewer disputes than he had expected. Perhaps there were more to come, but only time would tell. The Employers’ Federation felt that the legislation was inadequate in that it lacked a fast track to the Arbitration Court on the type of dispute seen recently. Legislative provision for damages action was not attractive and injunctions had problems. Mr Rowe said he had the strong feeling that the principle of voluntary unionism

would take hold in New Zealand, but meanwhile employers would continue to argue for the ratification of the International Labour Organisation’s charter of rights involving unions and employers. On the wage talks, he said talk by the F.O.L. that these might break down was premature. Progress had been made and more progress was possible. Mr Rowe denied that there had been any collusion between employers and Government officials involved in the tripartite talks on wages. Employers had been trying to get agreements which produced less inflation from the wagefixing procedures. There had been agreement, for example, on greater recognition of the ability to pay wage increases. That was a considerable step. Guidelines laid down had

to be adhered to and there was some difficulty on the procedure of departing from guidelines. Employers wanted no flow-over into other areas. Mr Rowe termed relativity “an ungodly trinity,” but he argued again that progress had emerged from the talks and that it was premature to say that they would break down. Many issues had been involved, but it was critical to arrive at a total package. Partial solutions, as had been used in the past, were not acceptable. To lurch from one regulated period to another would bring disaster, said Mr Rowe. The mechanism of wagefixing had to be in place before wage round negotiations started next year. Everyone accepted that there would have to be some legislative change this year and it would be much better if it was introduced with the prior agreement of all parties, he said.