12 May 2021

Infometrics economist:public sector pay freeze IS a pay freeze

From First Up, 5:52 am on 12 May 2021

The government was in crisis talks with workers' unions yesterday over its public sector so-called pay freeze, which has been met with fierce opposition. The public sector unions have warned of "serious disruption" and industrial action should the government fail to change its position. Under the restrictions, public service workers who earn more than 100-thousand dollars a year can expect no pay rise until at least 2024. It's the same for most of those who earn more than 60-thousand a year. The government has denied that it's a pay freeze, Finance Minister Grant Robertson pointing out that public servants -- such as teachers, nurses and police officers -- will continue to earn more as they move through pay bands, and through collective bargaining. Joining Nathan Rarere to try and understand this is Infometrics economist Brad Olsen.