Pay increase to be expected

Pay increase to be expected

The 3.2 per cent wage and salary rate increase recorded by the Labour Cost Index released today is to be expected, the Employers & Manufacturers Association (Northern) notes.

"It is inevitable that today's tight employment conditions and a well functioning labour market would lead to continuing wage growth," said Alasdair Thompson, EMA's chief executive.

"But business is concerned that pay and staff levels in central and local Government administration are rising too rapidly.

"To remain competitive, business badly needs the types of skilled people being employed in the public service to create wealth.

"Taxes from people in business pay for our public service so when Government administrators compete for skills with private business, all New Zealanders are economically worse off.

"Rising pay and staff numbers in the public service also exacerbate inflation.

"Government should review both the numbers and wage levels being paid to our public service administrators."

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