June 8, 2006
Reserve Bank Governor ‘out of order’
Reserve Bank Governor Alan Bollard is out of order in calling for wage restraint to control inflation, says the country’s largest union.
Engineering, Printing and Manufacturing Union national secretary Andrew Little said that workers would not accept low wage rises while companies continued to enjoy healthy profits.
“Most New Zealand companies are highly profitable, as they have been for more than five years,” he said.
“Why should working families see their real incomes eroded while company shareholders continue to reap large dividends?
“Asking workers to curb their wage expectations to control inflation is as realistic as asking shareholders to curb their profit expectations to control inflation.”