Taranaki weekly incomes on par with national figures
Taranaki union leaders have disputed figures showing workers’ weekly pay packets in the region had risen more than 10 per cent from the previous year.
Statistics NZ figures showed the median weekly income in Taranaki had risen to $959, up from $844 in 2016.
The 13.6 per cent increase was the highest median income rise for all workers in the country.
The figures showed workers’ median weekly incomes in the region had drawn level with median incomes for all regions across the country.
Nationwide the median weekly income is also $959, up from $924 the previous year - a 3.8 per cent increase.
The latest 2017 figures showed the average weekly income in Taranaki had risen from $983 in 2016 to $1106. Nationally the average weekly income across all regions rose from $1086 to $1118.
Taranaki workers are paid on average $27.44 per hour compared to $30.36 per hour on average nationwide.
Traditional strong sectors in Taranaki - agriculture, manufacturing and construction - had reasonable to weak productivity growth rates, and low wage rates, nationally, the Council of Trade Union’s monthly economic bulletin reported.
E tu¯ union Taranaki organiser Ross Henderson said the figures did not reflect what was actually happening in the workplace.
‘‘The 13.6 per cent increase is surprising, I would have thought the opposite,’’ Henderson said. ‘‘The increase is hard to believe considering the more reasonable paid jobs in the region, for example in the oil and gas sector, no longer exist.’’
Henderson said the increase in wages was not reflected by what workers were actually being paid. ‘‘We’re not achieving anything like that sort of increase in our wage bargaining.
‘‘It is a race to the bottom for wage earners that we are really seeing now.’’
Henderson said the only explanation for the large average pay increase could be due to pay rises for residential healthcare workers, and people working longer hours.
‘‘The local economy has been slow to pick up and I don’t see in any sector where we can feel optimistic looking forward.’’
Henderson said Taranaki had a decade of ‘‘good times’’ with the oil and gas sector but there had been no, or little exploration work in the past three years.
‘‘The manufacturing sector, including heavy engineering and fabrication, are traditionally strong areas but are struggling with firms closing, and workers laid off.’’
The departure of Shell from the region ‘‘had not helped’’, he said.
‘‘We expect the second quarter of 2018 to be very tight in terms of employment in the region.
‘‘Many of the major plant maintenance shutdowns are about to finish, and we understand there is no new work on the horizon.’’
Henderson said many people on the minimum wage of $15.75 were now relying on government, not the employer, to increase the amount.
Maritime Union New Plymouth secretary Terry Whitehead said wage rates in the industry remained ‘‘highly competitive’’ and he had not witnessed large annual increases.
Port Taranaki watersiders were under a collective agreement which was reviewed every two years, he said.
Large overseas stevedoring companies have the bargaining power to hire labour from outside the region and keep pay rates level.
‘‘The industry is volatile and in the long term we want to be able to compete for contracts.’’
Taranaki Chamber of Commerce chief executive Arun Chaudhari said Taranaki worked hard to attract new employment and staff to the region.
Local wage rates are currently clearly dependent on commodity prices of oil and dairy, and the median salary trend mimicked commodity price trends, he said.
The Taranaki economy was reliant on petrochemicals and dairying, which were tied to global commodity pricing trends, he said.
‘‘Local wage rates for the more specialised roles do attract global talent and help make the region a cosmopolitan melting pot.
‘‘Taranaki was off the beaten track but national per capita income over the last four to five decades proved the region punched well above its weight.’’
The recent Ta¯ puae Roa, or Make Way for Taranaki, strategy would make Taranaki’s economy a powerhouse, he said.
‘‘The challenge lies in the implementation of this multi-faceted strategy, including getting support from central government.’’
Taranaki’s wide range of activities and unique lifestyle attracted newcomers to live here, he said.