Postponed wage round rejected

Press, 13 August 1986, Page 8

Postponed wage round rejected

Wellington reporter The postponement of the wage round sought by employers was not acceptable to the trade union movement or the Government, according to the Minister of Labour, Mr Rodger. He told the Employers’ Federation conference in Rotorua that the Government agreed there could possibly be some sense in managing the next wage round in some way.

An acceptable wage round package had not yet emerged from the talks being held. “We have had considerable experience of wage freezes and wage pauses,” Mr Rodger said. “All they do is create distortions in the economy and additional pressures when the ban on negotiations is lifted.”

Employers were also saying that another wage round like that of last

year would -wreck the economy. It certainly would not be beneficial for the economy to have another wage round at last year’s level, he said. It was the responsibility of the bargaining parties to ensure that last year’s wage round was not repeated. Unions and employers were free to bargain collectively, without Government interference, but the Government would not modify its policies tc

cater for unsustainable . settlements. Because of threats of union militancy, some employers had said the wage round should be managed, Mr Rodger said. ! Unions resorted to strike action because employers tended to respond favourably and give in to demands. If employers were serious about constraining the wage round level they had to withstand Indus-

trial action, possibly for longer periods than in-the past . Last year the ■ then Leader of the Opposition, Mr McLay, bad called him “Sideline Stan” for his lack of intervention in industrial disputes, It seemed thatthe parties had how -got the message, Mr Rodger said. The Minister was not going to intervene and the parties were taking.a more responsible attitude <to disputes. v .