Wage round ‘maturing’

Press, 20 September 1985, Page 2

Wage round ‘maturing’

By

PATRICIA HERBERT

in Wellington

The Prime Minister, Mr Lange, said yesterday that the wage round seemed to be maturing and settling down well.

He was commenting on threats this week by the Minister of Labour, Mr Rodger, to revert to controls should that prove necessary. ’ Mr Lange said no Government could allow its economic strategy to be subverted, but distanced himself somewhat from Mr Rodger’s remarks. He said they raised some unfortunate possibilities. The risk was that employers might concede high claims to save themselves “a bit of tension and strain,” and rely on the traditional escapehatch of intervention to let them off the hook.

Mr Lange warned that this would not happen and that direct regulation would

be used only as a last resort. The first consequence of irresponsible settlements would be business failure, he said. Effectively, he was returning the emphasis to the scenario outlined by the Minister of Finance, Mr Douglas. This is that the Government will depend on its tight monetary policies to contain the round.

Mr Lange said the warnings advanced by Mr Douglas and Mr Rodger were not contradictory, as both represented an interference. “The Government by its comment on situations and by its economic policy is creating a web of signals for the actors in the dialogue,” Mr Lange said. The rules of free wagebargaining did not constitute an absolute freedom in the literal sense, he said. The parties each had a responsibility, not licence, to do as they would.