Big employers forcing down wages—unionist

Press, 24 January 1986, Page 24

Big employers forcing down wages—unionist

PA Wellington Deregulation of the labour market will be New Zealand’s number one political issue this year, says the secretary of the Federation of Labour, Mr Ken Douglas. His comment came after his first day back at work after two months sick leave, during which he underwent gall bladder surgery in Moscow. Mr Douglas said he was now fully fit. He predicted a tough year for the union movement, with employers becoming more aggressive. As the economy increasingly emphasised exports, big employers and monopolies would push for policies that were not in the interests of smallscale manufacturers and service industries supplying the local market, he

Small industries depended on a well-paid local work force who could afford to buy their products. However, large employers wanted to drive down their workers’ wages, and that was behind the push to deregulate the labour market.

Mr Douglas said the employers Roundtable organisation was behind the new aggression of big employers. “The large number of lockouts indicates that they are disciplining their workers," he said. The Roundtable is a relatively new organisation that represents large employers and corporations.

Mr Douglas said the union movement found it difficult convincing people the economy needed to be

based on production of goods to be consumed in New Zealand instead of for export. “Without that, we are heading for a banana republic,” he said. An example was the way the cost of housing was now going beyond the reach of ordinary New Zealanders. The tax burden was another issue and the union movement would be holding a conference to discuss it.

Mr Douglas said the union movement had been successful in the last wage round in defending the low paid. It was clear the pressure was going to increase this year. Last year’s economic recovery would not continue, which was a further challenge for the union movement, he said.