2000 lowest paid public servants get pay boost
Hon Chris Hipkins
Minister of State Services
15 June, 2018 MEDIA STATEMENT
All employees in the
core public service will receive an hourly rate of at least
$20.55, the 2018 Living Wage, Minister of State Services
Chris Hipkins announced today.
The new hourly rate – or annualised equivalent of $42,744 – includes full-time, part-time and casual employees and will be implemented by a one-off adjustment in pay with effect by 1 September 2018.
“This decision is about supporting fair pay and employment conditions for a decent standard of living for all New Zealanders,” Chris Hipkins said.
“This government strongly believes that every worker should be in a situation where the pay they receive means they can at least make ends meet.
“Most of the workers who will benefit work in 13 government departments, and work in jobs including clerical and administration workers, welfare workers, contact centre workers and assistant customs officers.
“The departments will meet the estimated $7.23 million cost of the one-off adjustment from within their baselines.
“In subsequent years, the rate will be
subject to bargaining between government employers and
unions such as the New Zealand Public Service
Association.
“We know there is no one-size-fits-all
solution to the problem of low pay. This decision for the
lowest paid workers in the Public Service is one of a range
of initiatives the Government is implementing to tackle the
difference between the highest and lowest paid.”
Other initiatives already underway:
State sector
•
Progressing pay equity claims and initiatives to close the
gender pay gap in the Public Service, noting that 70 percent
of the people benefitting from today’s announcement are
women.
• New Government Expectations on
Employment Relations in the State Sector prioritise
narrowing the gap between the highest and lowest earners in
departments, and closing gender pay gaps.
For all working
people
• Amendments to the Employment Relations
Act currently before the House will strengthen collective
bargaining and unions’ ability to negotiate decent pay and
conditions.
• Once enacted, proposed
legislation will allow employers and workers to create Fair
Pay Agreements that set minimum employment terms and
conditions across an industry or occupation. Fair Pay
Agreements will help lift industries out of a low wage, low
productivity cycle, address the widening gap between labour
productivity growth and wage growth, and support a broader
sharing of the benefits of productivity gains in the
economy.
• We will raise the minimum wage to
$20.00 by 1 April 2021.
• The Families Package
announced in December 2017 provides targeted assistance to
improve incomes for low and middle-income families with
children.
The Cabinet paper is here: http://www.ssc.govt.nz/proactive-releases
ends