Compact excludes wages

Press, 14 September 1988, Page 11

Compact excludes wages

By

BRENDON BURNS,

political reporter The Government’s desire for a compact with trade unions would not see wage bargaining included, said the Minister of Labour, Mr Rodger, last evening. It was an indication of the commitment to do something about unemployment and consolidate the benefits of the economic reforms, he told an Electricians’ Union meeting in Wellington. Mr Rodger said unions could help make New Zealand industries more viable by assisting in opening up opportunities which had been wasted until now..

He repeated the suggestions made recently by the Minister of Finance, Mr Douglas, that there

were real gains to be made in some industries, particularly forestry and tourism.

“We are talking of New Zealand’s economic survival,” said Mr Rodger. An Australian-style accord, centring on agreed wage and price levels, was not envisaged. Wage bargaining was a matter for employers and unions to resolve.

“Nor are we talking about a form of long-term bondage, an irrevocable binding of interests between the Government and the union movement.”

Mr Moore, in his new role as an Associate Deputy Minister of Finance, has been given the job of developing the compact. He is declining to speak

publicly on what he envisages. Little detail is 'expected to emerge until after the current wage round.

But a 1984 book by Mr Moore, “The Added Value Economy,” outlined his desire for a negotiated economy. This suggested an economic and industrial council, made up of Government, employers and unions.

Its objectives would be to negotiate an agreement, which included an active labour market aimed at full employment and an investment policy ensuring stable economic growth. Government input would involve assurances on maintaining living standards, wealth redistribution, improved social services and pre-Budget consultations.