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