Wage stats welcome but more work to be done - EPMU

Today’s Labour Cost Index statistics showing record wage rises is being welcomed by the Engineering, Printing and Manufacturing Union as a sign that New Zealand workers are starting to get their fair share but the union says the pressure to lift wages must continue.

EPMU National Secretary Andrew Little says that the increases are good news but there is still a need to make sure workers can build on the gains they have made.

“When we started the 5% Fair Share campaign in 2005 it was in response to the fact that wages had been stagnating for two decades. These new statistics show wages are starting to improve overall but there’s a long way to go before working Kiwis are truly getting a fair share in the profits they help create.

“We shouldn’t ignore the fact that these figures conceal other stories about what’s happening to incomes.”

“Many workers are not getting a pay increase at all in any year. And many executives and professionals are getting increases in remuneration well above these reported averages.

“Our own data show the average negotiated pay increase for our members last year was 4.3%.”

Meanwhile some commentators have talked of the impact higher wages could have on New Zealand’s inflation rate and subsequent changes to the cash rate.

Little says these concerns are exaggerated. “Wage rises only play a small part in increasing inflation compared to drivers such as increased housing costs. Your average working Kiwi is still struggling to make ends meet.

“The case for keeping the pressure on wages remains and the EPMU will continue to push for decent increases this year.”

Details of the EPMU’s 2007 wage campaign will be announced at a mass membership rally in Taranaki later this month.

ENDS

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