Image TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage TileImage Tile
Image size: 5632x7680 Scale: 35% - PanoJS3
Page overview thumbnail

Article text

'TWO-ELEMENT' WAGE PLAN
PUT TO GOVERNMENT
New indexation
doubt raised
MELBOURNE,
Wednesday. — Fresh doubts
about the future of wage
indexation in its present form
were introduced today by the
President of the Arbitration
Commission, Sir John
Moore.
At the end of the sccond day of
the Full Bench's wage-case
hearing, during which the
Government's opposition to a full 6
per cent rise and to large tax cuts
was firmly put. Sir John asked the
Government's counsel, Mr Trevor
Morling. QC, to consider overnight
whether there might be a future for
a "two-element" wage system.
Sir John said there had been
debate during previous w&ge eases
about whether there should be full
or partial wage indexation.
The arguments had been based
on the assumption that the
commission would continue with
the total wage concept which had
been introduced against violent
union reaction in 1967. The unions
had tried since then to change the
system.
His proposition to Mr Morling
was that there be a primary wage
element to be adjusted frequently
and a second clement to be
adjusted less frequently.
This system, it is understood,
could lead to smaller but more
frequent cost-of-living adjustments.
Mr Morling had told the hearing
that he would ask the commission
to exercise its discretion and award
an increase significantly lower than
full indexation.
He said the Government did not
plan to introduce cuts in tax at
present. Large tax cuts would have
a deleterious effect on the economy
and would erode the benefits of
devaluation.
'Distortions'
In its outline submission, the Federal
Government said it saw the present case as one
raising issues crucial to the future of the
Australian economy.
Distortions to key relationships in the
economy which had developed during 1973-74
and 1974-75 had been only partly corrected by
the end of 1.976.
"The unreality of the wage increases that
occurred is illustrated by the fact that during
the period October 1973 to October 1975 when
industrial output actually declined, average
hourly earnings of persons in full-time
manufacturing employment increased by 53 per
cent", the submission said. "The adjustment
process, to which our submissions throughout
1976 were principally directed, is under way but
still has a long way to go. We submit that its
completion remains a prerequisite to sustained
economic recovery.
"These distortions to the economy,
particularly those associated with the excessive
increases in wages and oilier prices, gave rise to
the" situation in which by November 1976 the
Government could no longer avoid devaluation.
"The devaluation of the Australian dollar
has set in train fundamental changes in the
Australian domestic economy as well as in our
international economic relationships. It has
restored the competitive positions of export and
import-competing industries which had been
callcd upon to bear an unfair burden in the fight
against inflation.
"We will argue that if benefits of
devaluation are to be preserved, if the positions
of these industries are not to be eroded again,
and if their capacities to increase activities and
employment arc to be realised, it is essential
that the rates of increase of wages should be
moderated".
Tax plea
by NSW
The NSW Labor Government
lolcl the hearing that workers
should get less titan 6 per cent but
thai it should be tax-free.
Alternatively, workers who earned
up to $1X6 a week should get the lull
amount and anyone earning more than
that should jjet a flat amount.
The Tasmania n and South
Australian Labor Governments argued
for "plateau percentage" indexation.
They said full indexation should go
only to workers who jiot SI2,000 a
year. Workers paid more than that
would gel 2.8 per cent of their pay plus
S7.40."
It is the first time Labor
Governments have not supported
unions in pressing for the full amount.
Sir John Moore repealed today his
warning to demonstrating workers that
if they disrupted the ease it could be
delayed.
More than 200 building workers
stood at the back and sides of the court
during part of the day but were mostly
orderly alter the warning.
NZ gets .6pc
WI-LUNGTON, NZ, Tuesday
(AAP). — The award of a 6 per cent
general wage order by the New
Zealand tribunal today was described
by the Prime Minister, Mr Muldoon,
as a "blow to the Government's
efforts" on the economy.
He told a press conference he was
deeply disappointed
The figure he had hoped for was 3
per cent.
In its decision Uk tribunal said it
concluded that a 6 per cent increase
could be absorbed by ihe economy.
"It should contribute to the morale
of the labour force and industrial
harmony", the tribunal said.
It considers the order should not lead
to an increase in consumer prices of
more than 2.3 per cent or cost more
than SNZ70 million (SA6I million) in
overseas funds.
$