New Zealand labour strikes updates for February 2024
The summer holiday season is over and the reality of a new conservative, pro-business government making lots of changes, has unions and their members scrambling.
Cost of living remains high and interest rates are not budging all slowing the economy. As a result, the government announced an austerity program. National and local government agencies including health, education, conservation, customs and all other public services have all been instructed to make between 6.5% – 7% savings.
The government announced the new minimum wage increase, effective 1 April, with a shift of 2%. This raised unions and employees ire as the current CPI was sitting at 4.7%.
Unemployment and underemployment are set to rise.
The big two private sector unions have signaled that their target for negotiated wage settlement in 2024 will be 6%.
We expect some tough bargaining in the year ahead. Given the wide expectation gap for CA settlement with employers budgeting for 3% or less and on the other hand unions demanding 6% we expect a substantial increase in strike action.
The public service unions in particular are likely to be very active.
What we are seeing in NZ is not too different to what’s happening in Australia, EU, UK, Germany and South Africa. To give you a global perspective have a look at our Feb update on Adelhelm Global, regional update
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