Wage talks changes needed—economist

Press, 1 May 1984, Page 8

Wage talks changes needed —economist

New Zealand’s wage-bar-gaining structure needs to be altered, and should take the Government’s economic policies into consideration, according to a freelance economist, Mr Alf Kirk. However, the Government should have definite economic policies and it should bring them into the open, not keep the public in the dark as had happened up to now, said Mr Kirk, who was speaking at the Canterbury Master Builder and Joiners Association’s annual meeting last evening. Mr Kirk, until last year, was employed by the Federation of Labour as its economic advisor. Because there was not enough economic emphasis in determining wages, trade

unions were usually excluded from the economic debate in the community. “But they should have everything to do with it,” he said. Workers needed to be involved in the wider economic policy debate, which had not happened up to now. “Economic constraints have to be taken into account in wage fixing talks, so some major changes in the system are necessary.” The Government had to state its economic policies, which would be unusual, as most governments in New Zealand had no fixed policy, he said. “The Government should make it clear what its monetary and fiscal targets are; this would help matters

a great deal,” said Mr Kirk. It should also loosen its hold on the wage fixing system and stop interfering. To do this, the Economic Stabilisation Act ought to be amended, said Mr Kirk. “I find it quite disturbing that we can have a piece of legislation that can override almost all legislation in the country.” He suggested a new wage fixing system would be to introduce a new form of bargaining, such as industry awards. Each industry should have a composite agreement covering all awards within the industry. However, this system would only work if the Government let it run its course without interference, said Mr Kirk.