Media Release: FIRST Union
Friday June 8, 2012

Gap between lowest and highest paid still stark

New Zealanders will be alarmed at the big gap between the lowest workers’ wages and the top CEO salaries, FIRST Union said today.

Today’s NZ Herald CEO salary survey found average 2011 salaries among those CEOs surveyed was $1.5 million. This is down from 2010 average, but still up nearly $100,000 from 2009.

For many New Zealanders concerned about growing income inequality, the difference between the average worker and their CEO would astonish them, said Maxine Gay, retail secretary for FIRST Union.

“Low wages are one of the biggest drivers of poverty in New Zealand. Workers’ wages are well short of what those at the top of the economic pile are awarding themselves,” she said.

“There is no excuse for families living in damp, cold houses and children going to school without food, when the collective resources to support people are there, but we have such stark differences in income.”

Maxine Gay said in the retail sector, unless workers have come together in a union to lift their wages, most find themselves on or about the minimum wage, and workers in many other service sector industries would be the same.

“To close the gap between the rich and the poor we need to see many more workers having access to collective bargaining with their workmates, which is the most consistently reliable way to lift wages.”

Maxine Gay said National had no plan to reduce income inequality, as evidenced by the minimalist increase to the minimum wage and their signalled approach to reduce employment rights and welfare changes was making things worse.

She said the recently launched Living Wage Aotearoa campaign was a call to action to address poverty and inequality.

Ends.

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