Call for clamp in pay round

Press, 21 August 1989, Page 2

Call for clamp in pay round

PA Wellington Employers should give pay increases this year only if they are needed to recruit or retain employees, says the Business Roundtable.

A Roundtable member and the managing director of Magnum Corporation, Ltd, Mr Lindsay Fergusson told the Institute for International Research conference in Auckland that wage claims in the award round should be at “minimal levels.” There needed to be more differentiation in settlements to reflect adjustments occurring in different industries. The only important criterion for employers should be whether they needed to pay more to retain or recruit workers. He said more productivity bargaining aimed at reducing labour costs to improve competitiveness and reduce unemployment was needed. He warned employers that because the national award system could be used by employers to deliver low wage increases, that was 'no reason for them to stop pushing for more productive arrangements. The July increase in G.S.T. could not be a factor in wage negotiations since the ability of employers to increase wages or .recover.. costs .. ■■ would be unaffected by. 4 " ' the change, he said. Meanwhile, an attack

on penal payments and a warning not to lift wage demands to compensate for the G.S.T. rise has come from employers. In a paper presented to this week’s tripartite wage conference, the Employers’ Federation said the recent G.S.T. increase could not be compensated for in wages and incomes. The federation said previous excessive wage settlements had increased inflation, business failures and unemployment. It said this year’s wage demands needed to focus on productivity. Signalling an intention to target penal paymentsin the coming round, the federation advocated flexibility and less penalties associated with part-time work, and flexible hours to maintain and improve wages and. employment. The paper advocated decentralised bargaining. It said that in a competitive society bargaining structures could not be centrally determined. If there was to be growth, there needed to be reinvestment within organisations and industries. Businesses needed to draw on profits to achieve business growth, job opportunities and rewards.