Max Bradford

National Industrial Relations Spokesperson

Friday 29 September 2000

Union split over wage demands

The split in the ranks of the CTU and TUF just weeks after they announced a merger does not bode well for peaceful industrial relations under the Employment Relations Act, National's Industrial Relations spokesperson Max Bradford said today.

"The Trade Union Federation has today vowed 'to go full tilt" to get wage increases for workers that match inflation plus a catch up for what TUF believes workers have lost in the last 10 years.

"If TUF gets its way then we are about to see wage inflation and higher interest rates as Don Brash tries to hold inflationary pressures already under siege because of the collapsed dollar and business uncertainty.

"At least the Council of Trade Unions is being more cautious publicly saying it would look to alternatives to pay rises.

"This split in union ranks only increases the uncertainty and concern amongst employers and employees about what life will be like under the Employment Relations Act.

"The CTU's attempts to be reasonable about pay increases is in stark contrast to its partner the Trade Union Federation. But one thing is very clear - the unions are flexing their muscles.

"Employers and businesses fear that the big new powers unions get from Monday when then Act comes into force will mean more costs for them, more uncertainty and more disruption.

"The unions have just delivered employers the clear message that they've got every reason to feel concerned and uncertain."

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