9 Aug 2011

PM acused of planning to cut wages

8:49 am on 9 August 2011

The Council of Trade Unions is accusing Prime Minister John Key of planning to cut wages and conditions in order to help exporters hurt by the high exchange rate.

Mr Key says making the labour market more flexible is one way of helping struggling exporters.

CTU president Helen Kelly told Morning Report] it is clear any labour market changes would mean cutting wages and worsening conditions for workers.

However, Mr Key says he is not talking about reducing what people earn.