Source: Council of Trade Unions – CTU
The NZCTU Te Kauae Kaimahi are saying that the Government should do the right thing and deliver minimum wage increases that don’t see workers fall further behind, in response to today’s announcement that the minimum wage will only be increased by 1.5%, well short of forecast inflation.
“With inflation forecast at 2% by the Reserve Bank, the new minimum wage rate is an effective cut in real terms and will leave workers worse off. This is the second year in a row where this Government has made the decision to cut the Minimum wage in real terms,” said NZCTU Acting President Rachel Mackintosh.
“National promised to support New Zealanders through the cost-of-living crisis, and yet this decision will mean that the lowest income workers fall even further behind. Minimum wage Workers are now $1,206 a year worse off as a consequence of these real term wage cuts”.
“Government has a responsibility to ensure that all workers have enough to afford rent, pay the bills, put good food on the table, and buy their kids what they need. How are workers meant to keep up with rising food and rent costs when the Government is cutting their wages in real terms?
“At a time when inflation is coming down, this was an opportunity for the Government to give workers a break and ensure they get real terms pay increases.
“All New Zealand workers have the right to a liveable income to support their families – they deserve to be paid a Living Wage,” said Mackintosh.
