Wage round could resemble ‘a jungle’

Press, 16 August 1985, Page 4

Wage round could resemble ‘a jungle’

By

PATRICIA HERBERT

in Wellington The Government’s economic policies could be seriously undermined by the wage round, said the executive director- of the Employers’ Federation, Mr Jim Rowe, yesterday. The round could resemble a jungle more than the activities of sensible people, Mr Rowe said.

He predicted industrial disruption and excessive settlements leading to further inflation and higher unemployment. Of the much vaunted abil-ity-to-pay principle, Mr Rowe said, the essential problem was that it meant the ability to pay more. The unions would not apply it at award level but selectively against individual companies or industries. The Employers’ Federation rejected the idea if it simply meant legitimising second-tier bargaining, he said.

Likewise, it rejected the

notion of flexibility if it was to be “just another version of ratcheting upwards.” Mr Rowe said the Minister of Finance, Mr Douglas, had advised employers not to hide behind the Government as far as guidelines and historical relativities were concerned and that there would be no relaxation of the money supply to accommodate over-high increases.

But, Mr Rowe said, employers could not be expected to act as policemen for the Government's policies.