Farmers urge Govt to take tough wage round stance

Press, 2 August 1985, Page 20

Farmers urge Govt to take tough wage round stance

The whole success of the Government's economic policy and in fact the future growth in the economy will depend on the utmost constraint in the forthcoming wage round, according to Mr Peter Elworthy. president of Federated Farmers. “Federated Farmers supports the principle of free wage bargaining'as long as there is a fair balance between the parties, and employers are not simply able to pass increased wage rates on in increased prices.” he said. "These conditions do not exist at present. “Agriculture is simply not in a position to absorb further cost increases arising from wage increases. “Any increasees in the coming wage round must therefore be based on increased productivity which allows employers to absorb the increased wage costs without passing them on to the consumer and producer by way of higher prices. ’“lf agreement among the three parties cannot be reached, the Government must set a realistic guideline for the wages round. “It must make it clear

that if the guideline is exceeded the offending employer will have any market protection available to that industry removed immediately and that union privileges under the Industrial Relations Act will be withdrawn.” The wording of Mr Elworthy's statement came from a reemit passed at the recent dominion conference, the remit was drafted and moved by the dominion treasurer. Mr Ken Macdonald. and seconded by the chairman of the agriculture section, Mr David Ritchie. It replaced a remit from North Canterbury which read: "That Federated Farmers insit that the Government set wage guidelines or a general wage order at a level which is in the best interest of the whole New Zealand economy.” Mr Macdonald’ said that a soft wage round would "totally threaten the economic policy of the Government." He said many employers were weak and many unions had unreasonable attitudes. "There are the real issues in society at present.” he said. Mr Oliver Grigg, of North

Canterbury, said it was time the rest of the community earned its wage increases. Mr Aubrey Begg, of Southland, was against wage guidelines which he said just encouraged participants to try and beat them. Mr Elworthy said that the unions were displaying poor judgement in believing that under the economy's present position all higher prices could be recovered in increased wages. "It was only 12 months ago that the unions together with other sector groups accepted that New Zealand was living well beyond its means and that real reductions in income were required by all sectors.” he said. ’The economv has not vet

made the necessary adjustments and any attempt fully to recover cost increases at this stage will lead to runaway inflation and increased unemployment "If the Government does decide to proceed with free wage bargaining it must immediately improve the wage firing structure to cope with the pressures which this would cause. '"To do otherwise would be to invite a wages explosion followed by high inflation and a further loss of competitiveness by all export industries. “Everybody would suffer from such a process including the workers whom the unions are claiming they protect,” concluded Mr Elworthy.