Says upcoming wage hike by government won't be enough amid rising costs
The New Zealand Council of Trade Unions (NZCTU) is pressing the government to further hike the minimum wage in the wake of rising costs.
The government's move to hike minimum wage by two per cent won't be enough to keep up with the four per cent food price inflation and 4.5% rental price inflation unveiled by Stats NZ, according to the NZCTU.
"This new data confirms that the government's decision to only adjust the minimum wage by two per cent is in fact a cut in real terms, and this will put further pressure on the ability of families to get by during the cost-of-living crisis," NZCTU president Richard Wagstaff said in a statement.
"Wages not keeping up with inflation has a significant impact on workers having enough to afford rent, pay the bills, put good food on the table, and buy their kids what they need."
The government previously announced that it is hiking the minimum wage to $23.15 an hour starting April 1.
Workplace Relations and Safety Minister Brooke van Velden defended the increase saying it was a "cautious approach" given the current economic headwinds, adding that it also seeks to strike a balance between protecting workers' income and encouraging employment.
Petition for higher wage hike
In response to the wage hike, the NZCTU launched a petition calling on van Velden and Prime Minister Christopher Luxon to deliver minimum wage increases that "don't see New Zealand workers fall further behind."
"We believe all workers should be paid at least a Living Wage, but at the very least, the government must deliver annual increases to the minimum wage that lift low-paid workers' incomes in real terms," the petition read.
The petition has so far garnered 3,140 signatures as of Thursday.
