Bank workers' union Finsec says it'll be seeking inflation proof pay as it kicks-off re-negotiation of its members' collective agreement with Westpac.
Finsec notes Treasury's prediction that inflation could rise as high as 5.9% next year. That would be a significant rise from the year to March when the Consumer Price Index was 2%. The Reserve Bank is required to keep inflation between 1 and 3% on average over the medium-term.
Finsec campaigns director Andrew Campbell says the union wants a deal that gives staff a pay increase now and an inflation adjustment next year if the cost of living is higher that what is negotiated.
“There is a lot of uncertainty in the economy at the moment with workers facing increased costs due to factors such as the introduction of the ETS, increases in early childhood education costs and GST rises. A pay increase now and an inflation adjustment next year is an accurate and fair way to make sure workers’ pay doesn’t go backwards,” said Campbell.
He said Finsec was calling on Westpac to be a leader and make sure it provides staff with a wage increase that sees their pay at least hold its value.
Read Finsec's statement below:
Negotiations for one of the country’s largest private sector collective agreements start tomorrow with Westpac workers seeking to inflation-proof their pay in the face of significant cost increases.
“Treasury is predicting inflation will hit 5.9% so we are seeking a settlement that gives staff a pay increase now and an inflation adjustment next year if the cost of living is higher than what we negotiate,” said Finsec Campaigns Director Andrew Campbell.
“There is a lot of uncertainty in the economy at the moment with workers facing increased costs due to factors such as the introduction of the ETS, increases in early childhood education costs and GST rises. A pay increase now and an inflation adjustment next year is an accurate and fair way to make sure workers’ pay doesn’t go backwards,” said Campbell.
“Pay outcomes in large private sector agreements can have a broader impact and influence market rates. We are calling on Westpac to be a leader and make sure it provides a wage increase that sees workers pay at least hold its value as a minimum,” said Campbell.
“Westpac made $125 million in the first six months of this year and our pay claim will only cost around 2.5% of that profit. With wage growth lagging behind economic growth it is important that employers who can afford to provide real compensation for cost of living increases do so,” said Campbell.
“Investing in local workers’ wages is a way to retain more of the bank’s profits in New Zealand and can assist workers to save more as well as meet cost increases,” said Campbell.
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