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Wage settlements below 5% the norm

Monday, May 23rd, 2005

Wage settlements below 5% the norm

Unions are settling many wage claims for less than five per cent per annum, with no benchmark figure in sight this year, says the Manager of Employment Services for EMA, David Lowe.

The 'one size fits all' wage increase of five per cent is dead in the water, he said.

"Unions may still be saying five per cent is the going rate but many employers are now finding this is not the case," Mr Lowe said.

"Old style stand over tactics have failed; settlements are regularly being reached at substantially less than the five per cent.

"Some small businesses targeted by the union who succumbed to bullying tactics are now contacting EMA asking for help.

"Wages need to be agreed on the basis of the specific circumstances of the employees and the business involved.

"Some unions have been forced to back down when their own members have ignored union advice and accepted their employer's offer.

"Employers and employees want to work together.

"Unions promoting their value to members by creating divisions between workers and management are from a by-gone era, and their own members are telling them that."

ENDS

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