II. INDUSTRIAL RELATIONS

The guiding principle of "Industrial Peace with Justice" is as valid today as it was 13 years ago. There will undoubtedly be disagreement over distribution of the fruits of economic growth. It will be the task of the National Wages Council periodically to establish equitable wage guidelines acceptable to both management and labour without adversely affecting our economic growth, whilst ensuring a rising living standard for workers. Workers must get an equitable share of higher productivity and profits, if they are to give of their best and identify themselves with the enterprise they work for.

We shall regulate increases in wages and salaries in a steady and equitable manner, not too low a rate to cause disappointment, not too high to cause inflation, with more money chasing the same amount of homes and services, causing more imports of unnecessary luxury goods, leading to a drain of foreign exchange. The danger most to be avoided is wage increases of a magnitude that pushes the cost of our services and manufactured products up until they become uncompetitive in the international markets.

The National Wages Council, unions, employers and the Government must work together. They must not simply seek their own sectional interests of higher profits and higher wages, and in so doing defeat our national purpose of more exports and more investments to generate more wealth. Wages and profits must be such that returns on equity remain high, attracting more invest- ments, whilst workers get a fair share of an ever-increasing cake which their harder work and increased productivity have made possible.

Hitherto, industrial relations functions of the Ministry have been mainly "curative" in nature. Preventive measures will now receive greater attention. The object is to prevent or eliminate nascent points of friction between labour and management before they assume ominous proportions.

The guiding ethos of industrial relations should be co-operation not corn-bat, reflection not agitation. The Labour Ministry will do its part to bring about this mature industrial relations through education, persuasion, and promotion of institutional arrangements through improved communications and reduce tensions between labour and management.