30 June, 2016

MEDIA RELEASE

E tū says government in denial over growing poverty and inequality

The union, E tū says the government is in denial over growing poverty and has been directly responsible for driving down wage growth.

This morning, the Finance Minister, Bill English told Radio New Zealand’s Morning Report that the government has lifted the minimum wage, which is now among the highest in the world.

But E tū’s National Director of Industries, Ged O’Connell says New Zealanders also face very high living costs “and wages are not keeping up.”

He says people living in cars has seized the headlines, but increasing numbers of middle New Zealanders are feeling the pinch as the value of their wages falls and well-paid jobs disappear.

“We’ve just seen the closure of Holcim cement on the West Coast and 80 jobs gone with the sudden closure today of Lumbercube in Rotorua.

“Those kind of well-paid jobs are disappearing, while growth is occurring in industries where poverty wages are the norm.”

He says employers have a role to play in lifting wage rates, but the government has consistently acted to constrain wage growth.

“This government has enacted about 30 pieces of legislation to limit the ability of workers to get a better deal. Bargaining rights have been eroded and it’s become much tougher to win higher pay.” he says.

Ged says workers need a Living Wage.

“In the end, it is children and their opportunities which suffer from poverty wages as the story of Situa Tangatauli and her husband, who work multiple jobs to pay the bills makes very clear.”

ENDS

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