F.O.L. attacks ‘callous’ performance by National

Press, 9 May 1984, Page 8

F.O.L. attacks ‘callous’ performance by National

By

MICHAEL HANNAH

Parliamentary reporter The Federation of Labour yesterday pledged its support for a Labour Government and pitched into the National Party’s record on wages, living standards, and the economy. In his presidential address to the F.O.L.’s annual conference in Wellington, Mr W. J. Knox attacked the National Party for “its callous indifference” to the suffering of lower-paid workers and the unemployed. Lower-income earners had had effective pay cuts of 16 per cent in the two years to September, 1983, Mr Knox said. At the other end of the scale, there had been pay increases of 1 per cent. The chances of assisting the lower paid through the tax system had been narrowed by the “massive kickback” in tax changes for the high income earners in the 1982 Budget. “It is nothing short of disgusting that unemployed workers should have to bear the brunt of the recession, while other sections of the community are reaping rich rewards from the sharemarket,” Mr Knox told delegates and observers. He asserted that the “terrible scourge” of unemployment was being deliberately used by the Government in

an attempt to hold down the inflation rate. “As a consequence, each of the unemployed in our community is carrying the burden for those who still have employment,” he said. Mr Knox predicted that, in spite of having less scope to indulge in “its traditional pre-election lolly scramble,” the Government would quite likely be prepared to sacrifice prudent management of the economy for the possibility of another electoral victory. “The Government’s traditional pre-election Father Christmas act will add to inflation,” he warned. The F.O.L. expected the Government to dampen down unemployment to win the election, but cautioned that this would not represent a change in the over-all trend in “persistently increasing unemployment under National.” “Of particular concern is l the level of school leaver unemployment, the level of youth unemployment, the increasing numbers of unemployed who have been unable to find work within 26 weeks of registering, the increasing numbers who have left the workforce totally discouraged because their search for work has proven fruitless, the increasing numbers of workers who have been made redundant and the

disproportionate impact of unemployment on Maoris and women,” Mr Knox said. He slammed the S.T.E.P.S. programme for young people, as “ineffective,” with no assurance of a job after training. The Government’s economic management also came under attack as “ad hoc tinkering” which paralysed effective decision-making and left the economy “well nigh rudderless.” Progress on long-term wage-fixing talks had been hampered by a “hostile Government, more interested in window dressing than constructive debate” and by employers “who saw the discussions as an opportunity to cut labour costs,” he said. Mr Knox said the F.O.L’s aim remained a wage-fixing system which secured full employment for the workforce, and fairly and adequately rewarded workers for their performance. “We do not accept the right of a government to arbitrarily intervene in the process of wage negotiation,” he said. The trade union movement, however, could not achieve its goals without political action, and its efforts should be focused on returning a Labour government, Mr Knox said. That would be the first of three themes for the coming

year. Others would involve the F.O.L. in a fight to shift the burden of the recession away from those who could least afford it, to those who could more easily afford it; and the development of organisation and unity as the basis of future effective trade unionism. Mr Knox also reserved a comment for the New Zealand Party, saying it reflected a swing to the Right in New Zealand politics. Mr Knox emphasised the need for organisation in the trade union movement. He argued that attacks by the Government in the last year had revealed the movement’s weaknesses. Attacks had come through the wagefreeze, the tripartite wage talks, and the voluntary unionism legislation — the Industrial Law Reform Act. “We have not achieved a sufficient level of political and industrial mobilisation against either the wage freeze or the introduction of the Industrial Law Reform Act,” he said. “We must develop the trade union movement into a much stronger, disciplined, and efficient fighting force. The key to this, of course, lies in organisation.” Once organisation had been achieved, trade union movement had six objectives, he said. These were the return of government, the repeal of “anti-union” legislation which had built up under the National Government, the achievement of a minimum living wage, an alternative economic strategy, the forging of links with the unemployed, and attention to racism and sexism both in the community at large and in the trade union movement. “New Zealand’s history is clear in showing that significant gains for workers have only been achieved through the election of a Labour government,” Mr Knox said.