Unions gear up to break 6 per cent wage barrier

Press, 14 October 1986, Page 4

Unions gear up to break 6 per cent wage barrier

By

PATRICIA HERBERT

in Wellington

The action in this year’s, wage round has shifted from the conciliation council as both sides gear up for an industrial trial of strength. Delegates at a well attended Auckland Trades Council meeting yesterday resolved to call on workers to intensify their campaign to break through the 6 per cent barrier established in the drivers’ award.

Leading the effort are the engineers’ and stores unions but they will be supported by others, especially as more wage talks either break down or are adjourned as has already happened with the clerical workers and the stationary engine drivers.

The council’s president, Mr Bill Anderson, said the level of activity would pick up towards the end of this week and predicted some firms would, respond by locking out or suspending workers.

He indicated that the battle would be fought mostly in Wellington an expectation shared by other commentators.

The Employers’ Federation is also calling meetings this week in the three main centres to determine a response to the unions. The first of these was in Wellington yesterday, the second is in Auckland today, and the third in Christchurch tomorrow.

The federation’s director of advocacy, Mr Steve Marshall yesterday accepted that suspensions and lock-outs might occur but said they would be a last resort.

It seems that companies will be more likely to attempt to negotiate separate wage deals with their workers or to take damages actions against the unions in the courts. Of these, the second would have little more than nuisance value but the first may pose a real threat. This is because a num-

ber of awards, including the trend-setting metal trades document, will expire before they are renewed and employers are refusing to back-date — pressures which combine to make a house agreement attractive as an immediate source of wage increase.

The unions, have, however, anticipated this and are countering it by mobilising rank-and-file support behind the national award system and by urging their members not to be drawn into other bargaining. Clearly they are in for a long fight, a realistic assessment given that the employers are not in any rush to settle, believing time to be on their side. These attitudes, and the political stand-off created by the drivers’ 6 per cent, may mean it is weeks before another significant settlement is made.

The 6 per cent is commonly accepted as providing part of a wage path; the issue now being

whether it is the floor or the ceiling. Under such circumstances the politics in any negotiation are intense with no union wanting to go below 6 per cent and no employer wanting to go above. This impasse was reflected in last week’s decision by the parties in the electronics award to adjourn for one month when they were apparently close to settling. It was reflected also in the automotive parts workers’ refusal to accept a signalled employer offer of 6 per cent.

They did not want to prejudice the stores or metal trades negotiations, both of which are now collapsed and are the focus of the Federation of Labours push to raise the “going rate” above 6 per cent

The F.O.L. is still officially chasing 10 to 14 per cent as necessary to maintain workers’ living standards but, in reality, the argument has moved

from there. Before collapsing the metal trades talks, the engineers had indicated they were prepared to drop to 8.5 per cent and the employers, to move up to 6 per cent while, in stores, the union had signalled that its $2B a week claim (about 9 per cent on base rates) was negotiable downward. The relative closeness of these positions creates an extra sensitivity for those negotiators who now find themselves in the unaccustomed position of being at the head of the round, and they are understandably reluctant to do anything which might tip the balance.

On the employer side, there is an equal reluctance to go above 6 per cent The insurance industry reflects this. It is expected to negotiate an above-average ’ increase and will begin its talks next week but plans to hold back the real business until a trend has been established.