Williams told to stick to policy

Labour Minister Paul Swain was saying little yesterday over a suggestion that party president Mike Williams was castigated by Labour's parliamentary wing for publicly supporting a union's campaign for a 5 per cent wage rise.

Mr Williams told the Herald after the Engineering, Print and Manufacturing Union launched its "Fair Share - 5 in 05" campaign on Sunday that 5 per cent was "pretty modest" given the state of the economy.

He would not be asking union national secretary Andrew Little to pull his head in during election year.

By contrast, Prime Minister Helen Clark was reluctant to be drawn, saying on Monday wage talks were matters for employers and workers.

In Parliament yesterday under questioning from National MP Wayne Mapp about Mr Williams' comment, Mr Swain said: "The Prime Minister's made it clear that Government policy is that wage rates struck are the responsibility of employers, unions or employees.

"The president of the Labour Party, Mike Williams, has been made aware of Government policy."

Asked later if Mr Williams had been reprimanded, Mr Swain said through a spokesman: "Mike's an old mate. We had a friendly chat and I explained the Government's policy."

Mr Williams denied he was castigated. He said he agreed with Mr Swain that wage rounds were matters for negotiation between employers and employees.

"My point was that a lot of employees are getting headhunted at the moment and wage movements are one way of stopping that."