If recent economic forecasts of a “rock star” New Zealand economy are correct then New Zealand workers should expect pay
rises of at least four per cent this year if the labour market is working fairly, Labour’s spokesperson on Labour Issues
Andrew Little says.
“Some business commentators have predicted an economic boom driven by the Canterbury rebuild, on-going high dairy
industry returns and improvements in export markets around the world.
“But a survey released by Westpac today suggests less confidence amongst workers, however, with many feeling less job security and fewer expecting a pay rise.
"The economy isn't just investors and business owners, it is working people too - whether they are on a wage or salary
or a contract fee - and in a properly functioning economy they should also see decent pay rises and better incomes this
year.
"Bill English said this morning as he prepared to travel to the World Economic Forum in Davos that economic benefits had
to be shared with workers.
"How nice that the Minister of Finance has had a pang of conscience but he might also wonder how the benefits of
economic growth are going to be shared when every bit of employment legislation this government has passed in the last
six years has made employment less secure and made it harder to get a pay increase.
"The real test of how fair our labour market rules are is the level of pay increases working New Zealanders will get
this year, especially those not under a collective agreement.
"If you look at the drivers of growth and the expectations of the level of growth as well as factors such as interest
rate rises predicted from April, then a reasonable level of wage growth will be at least 4 per cent, with higher levels
justified in sectors like construction.
"If we don't see this level of wage growth then the labour market isn't working."
ENDS