PRIME MINISTER
FOR: PRESS 24 MAY 1977
NATIONAL WAGE CASE
The announcement today by the Full Bench of the Conciliation
and Arbitration Commission in the national wage case marks
the end of the incomes and prices pause.
The pause which had the support of the seven Heads of Government
in Australia seemed to offer a unique opportunity to break
the incomes prices spiral and thus slow down inflation.
Employer bodies gave substantial cooperation with the result
that a prices pause has effectively been in place since 13 April.
This was recognised in today's decision from the Conciliation
and Arbitration Commission.
In ' his judgemen t today, the President of the Commission,
Sir Johiif Moore said: are-satisfied with-theprices
for a wide range of goods and services have been held stable
since the 13 April agreement of the Heads of Government
on a voluntary wage-price pause. In particular, those subject
to surveillance by the Prices Justification Tribunal, covering
some 3449 companies, and those under the authority of Commonwealth,
state and local governments, have held back price increases and will
continue to do so. And we have no reason doubt that for the
present, many prices beyond those covered by the above have been
frozen pending our decision."
In a supplementary statement the Public Service Arbitrator,
Mr Taylor, was even more emphcatic. He said: am satisfied
that since 14 April, 1977, i. e. since the call of the seven
Heads of Government for a three mo nth wage-price pause, there has
been a substantial holding of prices. I am aware that the
agreement sought by the seven Heads of Government has
not eventuated, in the main because of the refusal of the
unions to accept a wage pause, but nevertheless the announcement
acted as a catalyst to spark off-* an immediate price pause and
it is significant that the pause commenced shortly after the
awarding by the Commission of the last national wage increase
of $ 5.70 per week to all wage and salary earners."
Regrettably trade union leaders refused to cooperate, even
in principle, in the initiative which the Heads of Government
took and which the price setters supported.
The State Labor governments progressively undermined the initiative
until finally the Premier of South Australia formally
withdrew from the agreement. The State Labor governments
refused to participate with the Commonwealth in a joint approach
to the Commission. They opposed the implementation of a wage
pause at-thenational wage case hearing, until Mr Dunstan
in an eleventh-hour effort to influence the Commission,
broke his agreement with the other Heads of Government.
The increase granted by the Commission only six weeks after the
$ 5.70 increase in the wages awarded in the previous national
wage case means it would be unreasonable to expect employers
to go on holding prices at this time. In these circumstances,
we shall be advising the other parties to the Heads of Government
agreement that we consider the pause should be formally terminated.
In his judgement, Mr Justice Moore recognised the value of
the pause. He said: " On 19 April we said that employers
generally had agreed with the government about prices and we
expressed the hope that agreement would be reached about wages;
and we still have that hope. This decision does not, of course,
close the door to any future proposals but provides a proper base 13
I for a more fully defined and viable wage-price pause.
The Commission would make itself available quickly to do what
it could to assist in implementing such a pause and the
impending inquiry into wage fixation methods could provide
a ready vehicle."
The pause has demonstrated that headway can be made in
controlling the rate of increase in wages and prices by efforts
from members of the community.
I would hope that all parties employers and unions will
exercise restraint to ensure that the gains made during the voluntarl
price pause are not lost. They can be built upon. Let us
continue our efforts.
The strength of the support which Australians everywhere gave
to the pause shows the concern the public feels about inflation.
I am sorry that the Commission did not award a smaller increase
in wages. This would have ensured a more rapid slow down
in inflation.
Nevertheless, the decision to discount for the effects of
devaluation on prices is very much welcomed.