6 October 2011

Low-paid on downward spiral to poverty

Statistics NZ figures released today showing the smallest rise in median hourly earnings in 10 years are further evidence that low paid workers are spiralling downwards, said the Service and Food Workers Union Ngā Ringa Tota.

SFWU national secretary John Ryall said the figures were not surprising and backed up what the union’s members were saying.

“All workers are entitled to expect a living wage,” he said. “But our members are now faced daily with choices like whether to pay their power bills or feed their families. The cost of living has far outstripped the miserable pay increases and ordinary hardworking families simply cannot make ends meet.”

The SFWU represents 23,000 of New Zealand’s lowest paid workers who clean, cook and care for other New Zealanders.

John Ryall said while SFWU members move closer towards poverty, those on high incomes were doing better than ever.

“With the highest cost of living increase in over 20 years and the lowest increases in pay in 10 years, the pain suffered by low paid workers is totally unacceptable,” he said.

“But the rich list showed that the richest 145 New Zealanders increased their wealth by nearly 20% in the past year and the Herald salary report showed CEOs pay went up by 14%. And of course The National-led government’s tax cuts benefitted only the wealthy.

“Increasingly there are two New Zealands. Our members – the majority of whom are Pacific, Maori and women workers are all shown to be going backwards in these stats.”

John Ryall said a $15 minimum wage was needed immediately, along with and improvements to labour law to make is easier for unions to negotiate a genuine living wage for members.

AUTHORISED BY SERVICE AND FOOD WORKERS UNION, 35-39 GEORGE STREET, KINGSLAND, AUCKLAND

ENDS

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