Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 8, 1976, Winnipeg, Manitoba Winnipeg free press thursday january 8, 1976 13 Canada based firms deny evading . Pay freeze London up Cana Dian based and other multinational companies Here vigorously deny any suggestion that they Are evading the government backed freeze on executive salaries. But there Are Strong sushi c i o n s in some including Union some big firms Are breaking out of the freeze that is sup posed to apply for 12 months on All salaries Over a senior executive in one Large who dec Ned to be identified confirmed that he and others Are about to step through one of the loopholes in the British policy. His pay will1 in future be provided by a foreign associated company and will be raised because incomes from abroad Are not covered by the freeze. But a spokesman for his other firms queried in recent interviews denied any knowledge of such techniques being deliberately used to skirt government restraint. Companies Are extremely sensitive about the Issue. Any hint of pay freeze evasions might shatter the fragile in comes pact adopted by the unions employers and the government last summer. Heart of the program is agreement from unions to limit pay demands in the 12 months ending next August to increases of 512.50 or less a week. In return the government is holding the lid. On some prices while employers main Tain a freeze on executive salaries. 1 it s a voluntary arrange ment except that the government can bar a company from passing on wage in creases in the form of higher prices. The government says the limit has won virtually unanimous adherence so far. About 2.5 million workers Al ready have been included in wage agreements under the limit the employment department says. But while collective agree ments can be easily monitored the department says it has no sure Way to examine Tondi viral increases that companies May Grant their executives As Well As professional and highly paid technicians. Some firms simply cannot afford pay increases. For those that can fringe Bene fits such As company housing and pensions might be improved without viol at Reform in Resis from Reuter Asp Kingston Jamaica up some industrialized Conn tries were reported to be re sisting the idea of increased Loans for developing countries As finance ministers from 20 countries met wednesday to resolve policy differences Over Loans by the International monetary fund French finance minister Jean Pierre Fourcade told a reporter the Only problem remaining As the delegates considered monetary Reform and other matters is the question of Access for developing Conn tries to if resources. Leaders of the developing countries were reported unhappy that they had not been consulted when the rim b o u i 11 e t Summit last de c e m b e r negotiated agree ments on Gold and currency Exchange reforms. But informants said the developing states Are prepared to accept these reforms pro Viding they can get certain other concessions in return. They Are seeking a substantial increase in the amount of Money they can borrow from the if on easy terms. But several industrialized countries including the unit 1 de states and West Germany were reported opposed to de mands for an increase. The major debate Over in creased lending is expected to emerge today after ministers representing both industrialized and developing coun tries Complete work on the Reform package. While american officials admitted privately that the . Is opposed to an increase in fund lending they remained publicly non commit Tal. We will wait to hear what the less developed countries have to . Treasury Secretary William Simon said before entering the meeting. Ministers and technical experts from 24 of the develop ing countries have been con Ferring Here since monday to try to work out a common position on the lending Issue to be presented at the forma sessions of the if s interim committee. Ing the letter of the pay freeze. Multinational firms have another loophole. They can place their employees in Bri Tain on the payrolls of subsidiaries in other countries. A spokesman for the subsidiary of the Montreal based a1 c a n aluminium limited said some executives work ing for the British company already have at least part of their salaries paid by the Ca Nadian Parent company and these May be increased. But said there is no move to Transfer payroll accounts just to evade the pay freeze. Similar responses came from the subsidiaries of the Toronto based Plassey Ferguspn and the local subsidiaries of Shell International business machines and Xerox. A Xerox spokesman said he knows of no Steps by his company to put employees Here on foreign payrolls. But he acknowledged that British firms arc having increasing difficulty attracting executive s in the International Market As British salaries slip further behind those in other countries. Asked whether the freeze is being strictly honoured an official of the trades Union Congress the unions go verning body replied i very much doubt i have a general suspicion that companies Are get Ting around it but i have no solid Nigel Bryant salary re search manager for a Large management consulting firm said there is an element of secrecy on the Issue. It s highly confidential of course. No company is Likely to talk about this kind of but he had no evidence at All that multinationals Are switching employees to foreign payrolls. Cabinet r British icelandic boats collide aboard has Andromeda off Iceland Reuter a British frigate and an icelandic patrol vessel collided wednesday off the coast of latest incident in the dispute Over the Island country s 200-mile fishing limit. Each blamed the other for the collision Between the frigate of the naval ships sent to protect British trawlers fishing in the the coast guard vessel Thor about 40 Miles off Iceland s Eastern coast. The basis for the dispute has been Iceland s unilateral declaration of the 200-mile fishing limit to preserve species in Waters where Bolh Britain and Iceland have traditionally fished. The collision caused no injuries hut the Thor sustained a 15-foot Dent in her bows and a Hole a foot in diameter. The Fri Gate had a 12-foot Dent in us Hull and some damage to deck fit Tings and guardrails. The Andromeda had been main lining a steady Speed and course As the Thor moved toward it. 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