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Higher Wages Crucial To Transforming The Economy

MEDIA RELEASE
NZ Council of Trade Unions
14 February 2006


Higher Wages Crucial To Transforming The Economy says CTU


The Council of Trade Unions says that higher wages are a crucial part of the economic transformation agenda outlined in the Prime Minister's Statement to Parliament today.

"Wages will need to rise if we are to make the shift from an economic low road to the high road," said Ross Wilson, Council of Trade Unions President.

"New Zealand cannot compete on volume with the economies of China, India and others, but we can compete on expertise. The changes happening in industries in New Zealand, particularly manufacturing, need to shift our economy up the value chain based on higher wages and high levels of skill and productivity."

"The low wage strategy adopted in the 1990s substantially contributed to our vulnerability to global competition from countries like China, India and Brazil, and the economic agenda must intensify work done to date to lift productivity and increase training and skills development, alongside increases in wages."

ENDS

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