Mailing Label Household Merge requires Household to be selected as well as individuals

The "Merge labels for contacts belonging to the same household" option – the mergeSameHousehold() function in CRM/Contact/Form/Task/Label.php – needs to handle the condition where individual contacts which belong to households are included in the target set BUT the household record is not. Currently in this case no label is produced. The function should behave in the same way as the export "merge into households" option. It should check for associated household records for the individuals in the set, AND if any of the individuals are part of a household, create a label for the household instead of for the individuals.

EXAMPLE: Jane Smith and Jack Jones are members of the Smith-Jones Household. The target set of contacts for the mailing labels includes Jane and Jack (but not the Smith-Jones Household). The output should include a single mailing label for the household and exclude labels for Jane and Jack.

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When creating mailing labels and "merging by household" if you do not select the household record as well as the individual records then the merge by household will not work i.e. it just send to individuals. When I "Export Contacts" it works fine i.e. if I select more than one member of a household then it merges the two (or more) under the household. There has been discussion on this on the forum http://forum.civicrm.org/index.php?topic=19436.new;topicseen#new