Employers have doubt about wage proposals

Press, 29 June 1985, Page 6

Employers have doubt about wage proposals

PA Auckland The Employers’ Federation considers that wagebargaining on the basis of ability to pay, a procedure favoured by the Government, could lead to extended second-tier negotiations. That, it says, would inevitably lead to strike-in-spired agreements. The comments were contained in a paper presented by the federation to the

tripartite wage talks this week. The paper says: “The federation believes that the Government’s policy position of flexible wage-bar-gaining for the 1985-86 round is courageous and encouraging. “It recognises the outdated and repressive nature of our existing wage-fixing system. But the federation also recognises the dangers of plunging headlong into radical change without first

establishing a firm launching base. “We need the legislative framework and support services in place before we take off on an ability-to-pay ; bargaining wage round;” The federation says that without such a framework “we leave the door wide open for extended secondtier bagaining.” < . That, inevitably, “will lead to attempts to spread ability-to-pay and strike-in-spired agreements into industries which do not have the ability to pay.”