BIG UNIONS REJECT TRADE UNION CONGRESS WAGE-FREEZING PLAN

Wanganui Chronicle, 4 November 1949, Page 5

BIG UNIONS REJECT TRADE UNION CONGRESS WAGE-FREEZING PLAN

LONDON, Nov 3 (Recd 6 pm).— The Trade Union Congress General Council’s plan for a complete wage freeze, with no exceptions, was flatly rejected yesterday by some of the powerful trade union leaders who form the Council’s special economic committee, which is considering the effect of devaluation on wages and prices.

They insisted, firstly, that the lowest paid workers must be free to get a wage increase when the cost of living goes up, and secondly, that trade unions must be free to negotiate wage increases without restriction when they believe this to be essential to protect their members. The economic committee is to meet again on Monday. Commenting on the deadlock “The Times’’ says: "The whole structure of national policy in the trial after devaluation may be perilously weakened. There can be only regret and much disquiet that the trade union leadership has been unable to face the brave and difficult course suggested.” The rejected plan would have meant almost a complete standstill in wages, including the suspension of agreements under which wages of about 1,50,000 workers are tied to the cost of living, says “The Times’ ” Labour correspondent. Leaders of unions, with cost of living sliding scales, refused to accept that these should be suspended. When the cost of living rises, as the result of devaluation, and these unions receive automatic increases, it will be exceedingly difficult to ask other workers to restrain their wages claims. The committee, when it meets again on Monday, will no doubt re-empha-sise the need for wage restraint, but the prospects of making the advice effective has been considerably diminished and economic hopes which the Government had placed upon devaluation will be correspondingly weakened.