Inflation hike shows wages must rise

The Engineering, Printing and Manufacturing Union (EPMU) says pressure for higher wages will continue to increase following today's announcement that the Consumer Price Index (CPI) inflation figure has risen steeply by 0.8% in the quarter to March 30, taking it to 4.5%.

The increase in the cost of living comes mainly from soaring food, petrol, electricity and other prices which will hit working New Zealanders particularly hard on top of the government's GST hike last year.

"Inflation over the past year has reached 4.5% and is on track for 5.5% this year, the highest level in two decades," says EPMU national secretary Andrew Little.

"There's no question - working people are really feeling the pinch at the moment," he says.

"The reality is that while the CPI is 4.5% as of 30 March the impact on working families is much greater because it is the cost of household items like food, power and fuel that have risen the most."

"Those on the highest incomes had a big hand out from the government's tax switch last year while things keep getting tougher for middle and lower income earners facing increasing GST, petrol and food costs."

"Petrol prices alone have soared 25% since 1 October last year."

"This is not a good sign when 50% of workers didn't even get a pay increase last year and when real incomes have fallen 4% in the last year before this figure."

"While many EPMU members are in a better position to weather the cost increases than the average working New Zealander, another increase in living costs will be a factor in future negotiations."

"This new rise in the cost of living is going to have to be taken into account in the next round of collective negotiations."

"Every time our members fill up their supermarket trolleys or their cars they're feeling the pinch and the only answer to that is to ensure that they're getting high enough wages to keep ahead of the game."

"Without strong work rights Kiwi workers would not have the tools to win the pay rises they need and the government's removal of work rights on 1 April this year only made things tougher Kiwi workers and their families struggling to make ends meet."

The EPMU is New Zealand's largest private sector union representing around 43,000 members across 11 industry sectors.

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