06 August 2004
Wages Fail to Reflect Acute Skill, Labour Shortages
“The yawning gap between the demand for labour and wage rises is further evidence that strengthening collective
bargaining will benefit everybody,” Council of Trade Unions president Ross Wilson said today. New figures showed
salaries and wages were not rising as high as they should in response to persistent labour shortages and a high demand
for skilled labour.
The Labour Cost Index showed that wages increased by only 2.3 percent for the June 2004 year.
“A high demand for housing has meant a 16 percent increase in house prices, but a high demand for labour pushes wages up
just two percent,” Ross Wilson said. “This shows that the labour market is not operating as it should.”
Strengthening the Employment Relations Act had the potential to ensure a more effective market response to labour
shortages, he said.
Calls to increase immigration would not solve the problem.
“If we match Australian wages and conditions for skilled workers, thousands of Kiwis driven across the Tasman by low
wage strategies will come flooding home.
“The CTU supports appropriate immigration but not at the expense of providing work for New Zealanders forced to work
abroad or who are still unemployed,” he said.
Lifting and targeting investment in apprenticeships and industry training is also a key factor in tackling skill
shortages, Ross Wilson said.
ENDS