Trade union calls for raise of New Zealand’s minimum wage

This is the biggest annual increase since that of the second quarter in 1990, when annual inflation reached 7.6%, said StatsNZ, New Zealand’s official data agency.

As such, increasing the minimum wage is both necessary and desirable, said New Zealand Council of Trade Unions chief economist Craig Renney.

Renney said inflation is being driven by the price of building materials, rentals and fuel. Meanwhile, the wages of workers have not kept up with the rise in inflation.

“What is also clear is that workers’ wages are not driving the current inflation changes. The latest data on wages from StatsNZ shows that 42% of New Zealand workers did not get a pay rise at all last year.

“More than 80% of workers are getting pay rises less than inflation. Overall, the Labour Cost Index shows that wages increased 2.4% last year. Whilst some economists may be worrying about a wage/price spiral, we have yet to see increased costs feed their way through to increased wages.”

The most vulnerable workers will be hit the hardest, which is why the minimum wage needs to increase, Renney said. In addition, he urged businesses to ensure that workers with the lowest incomes get pay rises that match inflation.

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“What is needed now is to make sure that we are protecting those with the least ability to incur higher costs. The government can help by making sure that the minimum wage and welfare is at levels that don’t see workers fall further behind,” he said, according to Newshub.