REGRADING OF PUBLIC SERVICE

Gisborne Herald, Volume LXXIII, Issue 21977, 22 March 1946, Page 2

REGRADING OF PUBLIC SERVICE

NEW BASIC SALARY SCALES DEFINED

STEPS TAKEN TO REMOVE ANOMALIES

'WELLINGTON, March 22. The Prime .Minister. Mr. P. Fraser, announced yesterday that (he basic salary scale for use in the regrading" of the public service and the post and telegraph service as at April, 19-16, bad been approved by (he Government. “The new scale,” said the Prime Minister, “is the outcome of the recommendations of the Public Service Consultative Committee, which has given considerable study to the problems involved since it was set up last year. The Post and Telegraph Advisory Committee dealt with the matter as it affected the post and telegraph service. Both the Public Service Association and the Post and Telegraph Association had. since the completion of the Consultative Committee’s report, negotiated with the Minister of Finance, Mr. W. Nash, and an agreement has been reached on the scales now fixed. “Two important principles reflected in the new scale are that anomalies have been adjusted and cost of living bonuses are now incorporated in the salary. “The most significant change is the fact that the top of class VI is now reached in the lltli year of service, when the salary is ,€4OO. This compares with the former total remuneration of €393 in the 13th year.”

Authority to Fix Salaries Employees already on the £413 rate after 20 years’ service will continue thereon. An extension has been made to the public service commissioner’s authority in fixing higher salaries. Formerly he was authorised to fix salaries up to the top of class special. £B4O. This authority is now increased to permit him to fix salaries for positions up to £IOOO. Similarly in the post and telegraph service the director-general’s authority has so been extended. “It should be explained” said the Prime Minister, “that the new scale is the basis on which regrading is to be undertaken as at April, 1946. There is statutory provision for five-yearly regradings of the public service and the post and telegraph service. The last regrading undertaken was in 1937. Owing to war conditions, it was necessary to postpone the regrading due in 1942.

“After representations from the employee organisations the Government agreed that the postponed regrading should now take place, the new grading to operate from April 1 next. The Railways Tribunal

“During the war the Government agreed to the setting up of a Government Railways Industrial Tribunal with power to fix salary rates for railway servants, having regard to the wages paid in other industries. New scales were agreed to by this tribunal, to be effective from June 30, 1944. The Government agreed that any increases arising from the application of these scales would apply to other branches of the public service. “It was appreciated at the time that it was difficult to translate to the public service generally and the post and telegraph service decisions that were made with particular application to the railway service and that, through making adjustments following the Railway Tribunal’s findings, certain anomalies were sure to arise. Employees’ organisations of the general public service and the post and telegraph service made representations to the Government that these anomalies should be adjusted as early as possible. “To this end committees were set up in each of these two services comprising members of the official side and employees, who were to jointly consider the anomalies that then existed. Subsequently recommendations were made to the Government by these committees. No Big Over-all Wage Increase “The basic scale now approved by the Government largely removes these anomalies, but does not grant any substantial over-all increase in pay to the public servants. Some small increases, however, will be involved in the course of making adjustments. “The new scale does not contravene the Government’s '•stabilisation policy. The major effect of the revised scale is to enable anomalies to be removed that existed prior to stabilisation and in following the application of the Railway Tribunal’s findings to other branches of the public service. “At the same time it has been decided to incorporate into the salary the cost of living bonus at present paid separately. The revised scale, which will be used as the basis in the forthcoming regrading, will enable satisfaction to be given the claims of public servants.” Mr. Fraser thanked the Public Service Association and the Post and Telegraph e Association for the reasonable and responsible manner in which their respective representations were brought before the Government and for their full appreciation of their imperative necessity of maintaining the stabilisation policy in the interests of the country as a whole. “Settlement Acceptable” “The settlement is an acceptable one. The National Executive feels that it 1 will give general satisfaction through- ! out the service,” said Mr. J. K. Hunn, i president of the Public Service Asso- ; ciation, when asked to comment on the ; Government’s decision. “The law re- ■ quires a general regrading of the public

service every five years, but the or.-, due in 1942 was postponed on account of the war. Consequently the introduction of stabilisation in 1912 had the effect of pegging the public service rates of pay at the levels fixed in the last regrading in 1937. It is now nine years since that regrading and many anomalies have arisen in the meantime.

“The adjustments made by the Government in the salary scale will enable those anomalies to be corrected in the regrading which is to be made as at April 1 next. Except for variations dictated by the stabilisation policy the recommendations of the Consultative Committee were adopted by the Government.

“When the regrading is completed on the basis laid down a very considerable advance will have been made.” Experiment in Conciliation

Mr. Hunn added that the Public Service Consultative Committee had been a unique experiment in conciliation procedure. The results justified the hope that it would become the conventional method of adjusting major claims. It had been fully recognised by the association’s executive that the Government had been faced with a difficult task in endeavouring to do justice to its employees without departing from the policy which it considered fundamental to the welfare of the community. “The Minister of Finance throughout the negotiations had been very frank in stating his point of view and had afforded the association representatives every opportunity of discussing the difficulties not only with him but with his responsible advisers. He had also given meticulous attention to the association’s submissions.

“It had always been very evident that the Government was prepared to do whatever • it was convinced was right. Indeed, it would not otherwise have authorised the setting up of the Consultative Committee.”

Mr. Hunn hoped that the solid satisfaction which public servants would feel in the settlement would be shared by the Government P. and T. Department’s Appreciation “The announcement you have made to-night concerning the salary schedules which will operate in the post and telegraph service will be received with sincere appreciation by our large membership,” stated the retiring president of the Post and Telegraph Employees’ Association and Officers’ Guild, Mr. J. G. Churchill, and the presidentelect, Mr. G. A. Wilkes, in a letter received last night by the Prime Minister, Mr. P. Fraser. “These schedules are the culmination of some months of discussion, and investigation within our own department and in the concluding stages with your Minister of Finance. During these investigations it became patent that the post office of to-day is not the post office of a few years ago, but is now quite a utility department, handling a volume and variety of new and unusual work. “It will be realised that the reclassification of our service was considerably overdue, owing to circumstances arising from the war. Stabilisation Respected “From the outset it was apparent that the Government’s stabilisation policy had to be respected and any decisions made had to be within the framework of that policy. Earnest study by the departmental joint advisory council, followed by straight-for-ward discussions with your Minister and his advisors made possible a solution satisfactory both to the policy of your Government and reasonable expectations of our members. “This desirable result is the natural outcome of the friendly collaboration which has existed between the Government and our organisation over a period of years, and is one further example of the results made possible by the mutual confidence existing between our .association and the administration of the department—confidence which has been fostered by the Postmaster-General, your Ministers, and by yourself as Prime Minister.”