Govt’s pay freeze ‘unacceptable’

The Police Association has slammed the Government’s three-year public sector wage freeze as an “unacceptable bombshell”.

It was announced yesterday that public sector workers earning more than $60,000 could only expect pay increases in “exceptional circumstances”, while those on more than $100,000 won’t get a cent more over the next three years.

The Public Service Association (PSA) said the latest freeze punished workers “after a year of sacrifice, hard work and success protecting New Zealanders from Covid-19”.

Police Association president Chris Cahill said the announcement was dropped at the very moment the Police Association sat down with police to begin negotiations on the 2021 pay round.

It was “absolutely rejected by the association as it in no way demonstrates the ability of a government to bargain in good faith”, he said.

“It ignores the reality of the current economic times that loyal Kiwi workers are facing as they, in their private lives, grapple with record house prices and out-of-control rents. Inflation is also on the up with financial experts widely expecting inflation growth in the coming months, let alone the three years of this freeze.”

Such a freeze would consign workers to pay cuts in real terms, he said.

The Association of Salaried Medical Specialists Toi Mata Hauora said the ongoing public sector pay restraint was a “kick in the teeth” to senior doctors and dentists who keep core health services going and have kept New Zealanders safe and cared for during the Covid-19 pandemic.

Finance Minister Grant Robertson said the measures were due to the Government needing to reduce Covid19-induced debt, for polices like the wage subsidy.

Public Service Minister Chris Hipkins said any increases would be targeted to lower-paid public servants, largely those earning below $60,000, who account for about 25 per cent of the public sector.