New Zealand Prime Minister, Jacinda Ardern is seeking to damp down a furious union reaction to the Government’s decision to restrict the wages of many public sector workers for another two years.
Under the restrictions, Public Servants earning more than $NZ60,000 ($A55,600) will receive an increase only under exception circumstances. Those on more than $NZ100,000 ($A92,600) will get nothing.
Close to 20,000 people have signed a Green Party petition against the move and unions are suggesting that industrial action could be on the way.
Ms Ardern said this was the Government’s “starting position” before collective bargaining with the highly-unionised public sector workforce began, pointing out that employees would still move up on step-based progression.
Spokesperson for Public Services for the Green Party, Jan Logie said the decision did a disservice to those who had kept communities safe during the COVID-19 pandemic.
“These are the people on our front-lines at the border, teaching our kids as best they can during times of huge stress, staffing our world-class public health system and keeping our small businesses afloat,” Ms Logie said.
“We know people are struggling with rising rents and house prices, and the Government is choosing to ignore our essential workers by suppressing their wages, all for the sake of the bottom line,” she said.
Meanwhile, the New Zealand Police Association said the “bombshell” announcement was dropped at the very moment it was beginning negotiations on the 2021 pay-round.
President of the Association, Chris Cahill (pictured) said the sudden policy announcement was “absolutely rejected” as it in no way demonstrated the ability of the Government to bargain in good faith.
“It ignores the reality of the current economic times that loyal Kiwi workers are facing as they, in their private lives, grapple with record house prices and out-of-control rents,” Mr Cahill said.
“Inflation is also on the up with financial experts widely expecting inflation growth in the coming months, let alone in the years of this freeze,” he said.
Mr Cahill said the pay freeze would “consign workers to pay cuts in real terms”.
Wellington, 7 May 2021
