Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


LCI shows wages barely keeping up with inflation

CTU Media Release

7 August 2012

LCI shows wages barely keeping up with inflation

Today’s 0.5 percent increase in the Labour Cost Index in the three months to June means that wages and salaries are no further ahead compared to inflation than they were six months ago, and 2.5 percent behind where they were in March 2009.

Yet in Australia, the comparable Wage Price Index shows Australian wage and salary earners are 1.7 percent ahead compared to inflation in the six months to March, and 2.5 percent ahead of where they were in March 2009.

Bill Rosenberg, CTU Economist says “this means a further widening of the wage gap between New Zealand and Australia”.

“Inflation is low, and wages certainly aren’t pushing up prices. But the economy is going nowhere with unemployment remaining high and at current settings likely to remain there for a long time. More spending power in working people’s pockets might be just the thing to stimulate activity in the economy. If they were buying more New Zealand made goods and services, firms would be able to employ more people.”

“Most union members on collective employment agreements are getting increases in their pay rates, though there is a big range in the size of the increases. In the EPMU, the largest private sector union, for example the big Metals multi-employer collective agreement covering over 1000 workers in over 100 engineering and manufacturing firms, has been settled at a 2.8 percent increase in the first year, guaranteeing all those workers that rise. Progressive supermarket employees in FIRST union are in their second year of a 5 percent annual increase.”

“Many state sector employees are getting much less – often between 1 and 2 percent – because of the government’s actions in suppressing pay increases, meaning many have fallen behind the increased cost of living. The LCI for the public sector rose only 0.3 percent in the June quarter compared to 0.5 percent for the private sector.”

“However the LCI statistics show that only 56 percent of workers in general received a rise to address the cost of living or market relativities in the last year,” said Bill Rosenberg.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Mosque Movie, And The Demise Of Netanyahu

Plainly, a whole lot of New Zealanders – including PM Jacinda Ardern - are not on board with They Are Us, the mooted film project intended about the Christchurch mosque shootings. Here’s how the original Hollywood Reporter story described the gist of They Are Us... More>>


Government: To Apologize For Dawn Raids

The Government will make a formal apology for the wrongs committed during the Dawn Raids of the 1970’s.
Between 1974 and 1976, a series of rigorous immigration enforcement policies were carried out that resulted in targeted raids on the homes of Pacific families... More>>


Trade: EU And UK FTAs Top Of List For First Ministerial Trip Since COVID-19

Trade and Export Growth Minister Damien O’Connor today announced details of his planned visit to the United Kingdom and European Union next week, where he will hold trade and agriculture discussions to further New Zealand’s economic recovery from COVID-19... More>>

Transport: Clean Car Package To Drive Down Emissions

The Government is taking action in line with the advice of the Climate Change Commission to increase the uptake of low emission vehicles by introducing a range of measures that will help meet New Zealand’s 2050 carbon neutral target... More>>


Jewish Council: New Zealand Not Immune From Rise In Antisemitism

The representative body of New Zealand Jewry, the NZ Jewish Council (NZJC), has expressed concern about the high number of antisemitic incidents in New Zealand recorded last month. Spokesperson for the NZJC, Juliet Moses, said... More>>

NZNO: Nurses Reject DHB Offer And Confirm Strike Action

The New Zealand Nurses Organisation says its 30,000 members who work in DHBs have voted overwhelmingly to reject a second offer in their current round of multi-employer collective agreement (MECA) negotiations... More>>





InfoPages News Channels