CTU Media Release
23 May 2011
PM Challenged to Deliver on Wages and Jobs
The CTU has challenged the Prime Minister to show evidence of delivery on wage increases and jobs.
Peter Conway, CTU Secretary, said today that “we welcome the commitment from the Labour Party that they will lift the
minimum wage to $15.00 an hour within a year if they are elected in November.”
“That is a definite outcome, not just a vague promise based on heroic Treasury forecasts about wages.”
Peter Conway said that the Prime Minister last Thursday talked up wages and jobs – for the future – but will not explain
why there are 155,000 unemployed with youth unemployment at 27.4 percent. He promised 4,000 jobs from a cycleway but
just over 200 have resulted so far.
“Better wages and more jobs are always for tomorrow, when it comes to John Key” said Peter Conway.
The CTU has also pointed to analysis done when the minimum wage was lifted significantly several years ago. This showed
that when the economy is growing, a lift in the minimum wage can be associated with more jobs, not fewer.
Peter Conway said the Prime Minister often says real after tax wages have gone up for the average worker. But that is
based on the fact that 91 percent of the tax cuts went to the top half of income earners. And we know that 42 percent of
the tax cuts went to the top 10 percent.
“That is no substitute for a rise in gross real wages.”
“And now the Government has described the 30 percent pay gap with Australia as a competitive advantage.”
“Isn’t it time the Prime Minister fronted up? Where are the jobs he keeps promising? Why have wages not kept up with the
cost of living? When will the Government deliver rather than just talk?”
The CTU believes real wages will rise from three main factors – boosting innovation and productivity to add value to
goods and services, a fair wage bargaining system to share the benefits of growth, and a lift in the minimum wage.
ENDS