Public Services

August 2008

Comment

There is now widespread recognition that wages need to rise in New Zealand. The CTU has identified a number of measures that are needed to lift wages on a sustainable basis. These include: increasing the minimum wage to two-thirds of the average wage; amending employment law to strengthen collective bargaining particularly in relation to promoting industry and multi-employer base documents; greater support (including institutional forms) for union capacity to deliver improved wages for workers; the implementation of good employer and responsible contractor policies in the State sector, and an ongoing programme to deliver for women equal pay for work of equal value. We also support higher wages through more investment in skills, plant, machinery and technology alongside improved workplace practices to boost productivity.

These measures will help address the structural issues that underpin embedded low wages. In the short run however the pressure on the pay packet has been made worse by high food and petrol prices.

May 2008

Comment

Budget 2008 showed that relatively modest tax cuts nevertheless use up a large amount of money. The annual average cost of the tax cuts is $2.7 billion. John Key had been quoted prior to the Budget as saying that National would have bigger tax cuts. Last October I commented in this Bulletin that for the National Party it seemed that no matter what the question is - the answer is always tax cuts. That stance seemed to wilt somewhat within hours of last week's budget. But - a bidding war on tax cuts is still possible - and carries some real risks.

This Fact Sheet was prepared for the July 2002 General Election campaign.

Progress made under the current Government

The state sector plays a critical role in the lives of New Zealanders. It employs about 250,000 people and accounts for over a third of GDP. The public provision of high quality health, education, housing and other services has a strong influence on people's living standards and sense of wellbeing. Those services, underpinned by a social security system, are often referred to as the 'social wage' and are essential to ensure that working people are able to participate in their communities.

From the CTU policy book, produced November 2000.

5. STATE SERVICES STRUCTURE AND ORGANISATION

5.1 The State Sector

5.1.1 The NZCTU believes that a strong and effective state sector, motivated by the goal of service to the community, is both desirable and necessary, and that the achievement of such a state sector is a goal which all trade unionists and socially concerned individuals should seek to attain.