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Wages Must Increase In Response to Labour Shortage


Wages Need to Increase In Response to Labour Shortages

“Wages data released today by Statistics NZ shows that any evidence of wages responding to labour shortages is very limited,” said Council of Trade Unions secretary Paul Goulter today.

The Quarterly Employment Survey and Labour Cost Index data on wages shows a small increase in construction sector pay.

Private sector wages as measured by the Labour Cost Index show only a 2% increase in the last year. Although the average increase in the 3 months surveyed was 3.9%, only a small proportion of workers received an increase in that period.

“This indicates a marked reluctance by many employers to address the need for sustained real wage increases,” said Paul Goulter.

“Workers deserve better pay and conditions in recognition of their contribution to economic performance and to reflect the value of their work and rises in living costs.”

Paul Goulter said many workers are still not covered by collective bargaining - particularly in the private sector - and this is contributing to the low wage increases on an annual basis as indicated in the Labour Cost Index.


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