The Government must compensate public sector workers for rising inflation as thousands of workers look to renew collective agreements in coming months.

Today's inflation figures showing annual inflation rising by 3.1% is stark evidence that the cost of living crisis is still hitting working New Zealanders hard.

"The Government promised to bring down the cost of living, but it's failing to deliver. Working people are feeling the squeeze every day as their wages fall further behind rising prices," said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

"We're heading into collective bargaining for thousands of workers including Internal Affairs, Oranga Tamariki, MBIE, Corrections, Transport, Kāinga Ora and care and support workers in the community.

"These workers deserve wage increases that reflect rising inflation - they cannot be expected to go backwards.

"The Government is responsible for agreeing the wages of the workers it employs. It must recognise the squeeze on their incomes and take action with fair pay offers - not rhetoric - on the cost of living. The Government can expect widespread strike action if fair pay offers are not made.

"This is the same government that axed pay equity claims, leaving over 150,000 low paid women worse off. Ministers told these workers to look for increases through collective bargaining instead.

"Well, collective bargaining is here. The Government must be prepared to fund real increases that keep pace with inflation.

"The PSA will be making a strong case in negotiations for new collective agreements that take into account the rising cost of living on workers and their families."

About PSA:

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.

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