NZ Labour Market Trends | What HR Leaders Should Watch
Read on for a summary of ER events.
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2 Dec
Staff at Crest Hospital in Palmerston North took strike action on 2 December 2025 after a dispute over collective agreement coverage. The strike ran from 2pm to 4pm and involved hospital staff across clinical and support roles, including nurses, orderlies, anaesthetic technicians, sterile science technicians, administrators and other hospital workers.
The dispute relates to Crest Hospital’s position that certain lower-paid roles cannot be included in the collective agreement. Crest offered a living wage increase to affected staff, conditional on them remaining outside the collective agreement and meeting performance criteria. Staff rejected this approach.
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4 Dec
Secondary school teachers represented by the Post Primary Teachers’ Association have voted to accept the Government’s collective agreement offer, bringing negotiations to an end. The settlement, facilitated by the Employment Relations Authority, includes a 4.7% cumulative pay increase for teachers on the top two pay steps by January 2027, with an annual 2.5% increase in the first year and 2.1% in the second year; teachers moving up the scale will receive continued annual step increases and a 4.6% pay increase by January 2027. According to the Public Service Commissioner, the agreement will result in about 80% of trained secondary teachers having a base salary above $100,000 from late January 2026.
Fred A – It took a while to settle this one – with a 2.5% and 2.1% over two years.
Air New Zealand and unions representing cabin crew have adjusted their industrial action plans following ongoing collective bargaining. Agreements “in principle” were reached with unions covering regional turboprop and wide-body aircraft crews, leading to the withdrawal of strike notices for those groups.
Fred A – union used timing of strike as major leverage as the employer would be vulnerable over peak service period.
New Zealand Post is facing legal action from six courier drivers who say they should be classified as employees rather than independent contractors. The drivers allege they were mis-classified and are seeking recognition of employee status under New Zealand employment law, which would entitle them to rights such as minimum wage and leave entitlements. The case relates to broader legal debate about worker classification in gig-economy and contractor arrangements, following recent court decisions on similar issues.
Fred A – the growing discontent around employment classification for employers, employees and contractors continues in NZ
12 Dec
Staff at Woolworths’ Customer Care Contact Centre will walk off the job for three hours on 15 December 2025, from 11 am to 2 pm, in a dispute over pay, workloads, staffing and job security. The action affected employees who handle online orders, customer inquiries and support services.
Fred A – this dispute was about low pay as well as the company considering outsourcing current NZ jobs to low wage Asian destination.
From 1 April 2026, New Zealand’s minimum wage will rise by 2 percent, from $23.50 to $23.95 per hour, affecting approximately 122,500 workers. The increase applies to adult minimum wage earners, as well as starting-out and training rates, which will rise from $18.80 to $19.16 per hour, maintaining 80 percent of the adult rate. The adjustment follows the recommendation of the Ministry of Business, Innovation and Employment, aiming to balance maintaining real income for low-paid workers while minimizing potential job losses. Groups most affected include young people, part-time, female, and Māori workers, with sectors such as tourism, horticulture, agriculture, cleaning, hospitality, and retail most impacted. The increase is projected to fall slightly below inflation, which is expected to stabilize around 2 percent from mid-2026 onward.
Fred A – with the inflation rate now topping 3%, a 2% minimum wage hike for 2026 by the government will do little to lift the hardship faced by the low income sector in NZ.
16 Dec
Firefighters represented by the New Zealand Professional Firefighters Union (NZPFU) continued industrial action as collective agreement negotiations with Fire and Emergency New Zealand stalled. Members have been working without a new agreement since July 2023. Core issues include pay, staffing levels, recognition of operational cancers such as prostate and skin cancer, and ageing appliances. Firefighters have been routinely working the maximum 86 hours allowed in a nine-day period under fatigue management rules. The NZPFU has indicated that further strike action may occur if a resolution is not reached, while Fire and Emergency NZ has stated it continues to engage in negotiations.
Fred A – The Firefighters dispute … still going on. Their previous CA expired in July 2023!
The New Zealand Council of Trade Unions (NZCTU) says new economic forecasts show rising unemployment and falling real wages, and has criticised the Government’s economic strategy. The union said Treasury forecasts indicate unemployment increasing and wage growth not keeping pace with inflation. NZCTU President Richard Wagstaff said the forecasts show working people are facing continued cost-of-living pressures and reduced job security.
The Government has previously stated its focus is on reducing inflation and returning the economy to growth.
Fred A – Strong opinions expressed by NZCTU regarding the economic direction of the government
17 Dec
Primary school teachers, represented by NZEI Te Riu Roa, rejected two consecutive pay offers from the New Zealand government in December 2025. The latest offer, presented on 18 December, included:
The union maintained that these increases were insufficient to address ongoing cost-of-living pressures and did not provide the necessary support for staff and students.
Fred A – the low and middle income employees across NZ are feeling discontent – this includes teachers.
24 Dec
Customer care workers at Woolworths went on strike until midnight on Wednesday in protest against proposed changes to their working conditions, including the removal of working-from-home privileges and a mandatory one-weekend-day-off policy. Around 105 staff engaged in the action, marking the third strike in the past fortnight amid four rounds of negotiations over pay and conditions. These workers handle online orders, logistics, customer complaints, refunds and loyalty-program queries. Woolworths said it was disappointed at the timing of the strike, its busiest day of the year, and stated it had an offer on the table which it described as “fair and reasonable,” and that it would continue to support flexible working arrangements and pay team members for all hours worked.
Fred A – Workers First union at Woolworths NZ have been involved in a number of strikes in December. The issues – pay, working conditions and outsourcing.
26 Dec
The New Zealand Professional Firefighters’ Union has withdrawn a planned one-hour strike by paid firefighters scheduled for Boxing Day, citing the significance of the public holiday. The action is part of an ongoing collective bargaining dispute with Fire and Emergency New Zealand, which has been under negotiation since July 2024. Talks remain unresolved, with FENZ’s latest offer proposing a 6.2 percent pay increase over three years, and further strike action and Employment Relations Authority facilitation planned for January.
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