Central wage fixing completely unacceptable

‘Under the radar’ moves towards central wage fixing are completely unacceptable, says BusinessNZ.

Chief Executive Phil O’Reilly says recent kite-flying by the Labour Party suggest it is seeking to prepare the way for a return to a form of National Awards.

A recent speech by former employment minister Trevor Mallard indicated the Labour Party was considering a policy where all wages would be set by National Awards negotiated between unions, industry and Government.

Mr O’Reilly said central wage fixing was directly responsible for the high rate of strikes and industrial unrest during the 1970s and ‘80s.

“Central wage fixing and National Awards contributed to the huge strikes at Marsden Point, Clyde Dam, Mangere Bridge and others that cost the country millions in lost output.

“That system stifled growth and productivity in small businesses all over the country.

“Going back to central wage fixing would mean every small business having to pay the same rates as large companies in Auckland. That would destroy countless jobs in countless small firms.

“Reverting to central wage bargaining would be an invitation to unions to revert to the militant bargaining techniques that made the ‘70s and ‘80s two lost, strike-ridden decades.

“Mr Mallard has done New Zealand a favour by revealing that this system is under consideration and the Labour Party should now come clean about its intentions.

“If this is what the Labour Party intends as its policy for the 2011 election, it should clearly say so.”