New Zealand nurses strike:

New Zealand nurses are planning to strike on Thursday for the first time in 30 years after rejecting a pay rise offer, creating a political and fiscal test for the new government.

More than 30,000 nurses will strike for 24 hours after weeks of failed negotiations, their union said, after rejecting a government offer of a NZ$520-million ($356-million) package to lift wages roughly 3 percent and add staff.

The strike will disrupt health services nationwide and force all non-urgent treatment to be postponed, Winston Peters, the acting prime minister of the Labour-led government, said on Tuesday.

“This government is committed to working with nurses to address their concerns but we can’t fix everything in one pay round,” he added. “Their frustration and anger has built up over many years.”

The stand-off with its traditional union support base comes nine months after Labour formed a coalition government, promising to pour money into social services and rein in inequality, rising despite years of strong growth.

But it found money stretched in its first budget in May, as it balanced investing in much needed infrastructure with a selfimposed rule to pay down debt and insulate economy from the risk of a shock.

Business confidence has slumped to its lowest in seven years, and there are fears that Labour’s policies, such as a raise in the minimum wage, are leading employers to hold off on investment. (RTRS)