CTU Media Release

31 July 2012

Pay expectations gap no surprise

The Council of Trade Unions is not surprised at the gap between worker and employer pay rise expectations.

The latest Hays survey shows that whereas 35 per cent of workers expect their salary to rise by more than six per cent in their next review, a further 28 per cent expect an increase between three and six per cent, while 37 per cent expect less than three per cent. However Hays state that 63 per cent of employers intend to increase salaries by less than three per cent when they next review. Twenty two per cent will increase between three and six per cent, and six per cent of employers will increase above six per cent. The final nine per cent will not offer any increases.

Peter Conway, CTU Secretary, says “many workers have had minimal pay rises in recent years and expectations for a decent wage are growing.”

“Also workers have heard since 2008 that times are tight and not to expect too much. This argument gets a bit tired after four years”.

“In the last two years wages have increased by 1.9 percent a year on average and we now face a record annual loss of permanent departures of people to Australia. Reports emerge regularly in New Zealand about the relationship between poverty and low wages.”

The CTU believes that wages should be increased through a $15 minimum, wage, improved employment laws that encourage industry bargaining, and increased productivity with the benefits shared with workers.

“But in the meantime, employers have to look at ways to increase wages and the Government needs to set out a positive strategy to lift wages,” says Peter Conway.

ENDS

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