Minimum Wage Just Standing Still While Inflationary Profits Soar

Unite Union welcomed the minimum wage increase as the minimum needed by low paid workers to get by as they pay the price of massively increasing corporate profits.

“7% is actually just standing still” said National Secretary John Crocker. “It is bizarre to hear politicians who want to restore tax breaks for landlords and give tax cuts to the wealthy arguing that the lowest paid workers in the country should actually take a real pay cut. Do they think voters can’t see the reality of that policy mix?"

Mr Crocker also rejected the claim that the minimum wage increase will be very inflationary. “We have had consistent significant minimum wage increases over a number of years that clearly were not inflationary. Inflation has spiked internationally and Aotearoa has actually had lower inflation than most”.

“If there is a domestic inflationary pressure it is pretty obvious where to look:

• Power: The combined profits of Genesis, Meridian and Mercury (to the end of June 2022) totalled $1.35 billion, which is more than double their combined profits from the previous year.
• Supermarkets: The two major player have a Return on Capital of almost 13% - more than twice as high as the smaller grocery players
• Banks: ANZ posted a full year profit of just over $2 billion - up 8% on the year before while ASB had an 11% rise to $1.4 billion."

“And yet we are told it is the lowest paid workers who must take a real pay cut. Hell No."

"The government has guaranteed that low paid workers won’t lose money this year but Unite and other unions will be fighting to get low paid workers a real pay rise and at least a Living Wage.”

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