Red Alert

Bill English and the Pay Freeze

Posted by Grant Robertson on September 13th, 2009

The Sunday Star Times has an article where Bill English repeats his comments  in response to my oral question  earlier this year that there will be no pay increases for state sector workers, without some as yet totally undefined productivity gains.  Full marks for consistency on this issue Bill (as Tony Ryall continues to admit it is a pay freeze), but a massive fail for this approach.

Those working in the wider state sector are well aware that we are in restrained times, but by ruling out pay increases this far ahead, English is setting himself up for widespread industrial action. It is as the union reps say in the SST story also not acting in good faith.    The Police got a 2% increase this year, and much less than that could lead to industrial action in the very near future, let alone next year.

Moreover in two of our most essential services- health and education is Mr English really saying that he will do nothing to support retention and recruitment. There is global demand for doctors and nurses.  New Zealand teachers are sought after in the UK.  A pay freeze will likely push some off-shore.

Mr English bandies about figures of public servants getting 8-10% increases this year.  I would like to hear some actual examples of that.  What he is likely referring to in terms of more modest increases are the multi-year deals that some state sector workers got in recent years.  To take nurses as an example their pay increases were large, but they came after years with little or no increase and a desperate need to make the profession attractive and sustainable.

But my final question for Bill English is how does the A and E nurse at a hospital demonstrate productivity or a teacher of special needs children?   English admits he does not have a measure for state sector productivity and National’s usual definition of productivity- fewer people doing more work- just does not cut it when it comes to our collective health and the education of our children.


22 Responses to “Bill English and the Pay Freeze”

  1. I look at the work put into the Partnership for Quality by the PSA (rejected after the 2008 election by the Key government), then at the ’slash and freeze’ model now in place, and wonder why anyone in the state sector would feel like going the extra yard to deliver a better service. It is as if the government actively promotes disaffection, in order to reinforce their preconceptions of state sector activities. The perverse thing is that many of those revelling in ’slash and freeze’ have been public employees themselves for many years (but as MPs able to fix their own perks and enjoy appropriate salary increases – which, incidentally, I support).

  2. jabba says:

    Grant .. where would Labour get the money for all these pay rises you want to give to state employees which include Fire Fighters? .. does Labour have a secrect stash somewhere.
    I work for a large Oz owned company and we (non union employees) were told that we were geting nothing. Our management also had their potential bonus payments cancelled.
    We are pissed off BUT far more realistic than you seem to be.

  3. John Ryall says:

    Bill English is saying that health workers should not get a pay increase because they have already received an increase this year.

    The public hospital cleaners, orderlies, security workers, food service workers and home support workers have not received any pay increase this year but they too are being told state sector bargaining parameters mean they cannot receive any improvement in their working conditions that would cost the DHBs one more cent in expenditure.

    It doesn’t matter that nearly all of these workers receive less income per annum than is spent on Bill’s ministerial housing.

    I heard that Bill was allowed to claim for the cleaning on his Ministerial house at a rate higher than the one he is denying public hospital cleaners. Can you check this out?

  4. Kane says:

    Well I just hope that the workers in the NZEI, PPTA, NZNO and ASMS join forces next year and show the tories who really has the power.

    If English is already saying no to pay increases, while his tory fat cats keep getting richer, then the unions should also jump the gun and call a general strike for mid-2010.

  5. Grant says:

    jabba- I take a totally different view. All governments set priorities. Only this morning John Key is talking about extra money for the waterfront in Auckland. I think retaining and attracting staff in key roles like those who work in our schools and hopsitals is vital. Across the public sector people are working harder and making up for other staff who have lost their jobs. At the very least National should be sitting down in good faith with these workers.

  6. LabRat says:

    I think the Police pay rise of 2% is the right approach. The general public aren’t going to sympathise with anyone who strikes demanding any more than that though. It won’t just be the government you’re fighting then.
    Bear in mind that in the private sector a lot of us accepted pay cuts in order to minimise job losses. Take it on the chin.
    Interesting times.

  7. TopCat says:

    If the government can’t maintain the integrity of our public services and maintain and qualified and trained work force, what is the point of it existing? This IS a core role- sending our best trained and brightest to Australia is a fast track to the third world.

  8. Tigger says:

    Jabba – off the top of my head – cycleways, money for private schools, extra money for roading, MP’s taking extra perks, sitting under urgency all the time…just a few places to find some extra cash.

    And remember, these people are just asking for good faith. Unilaterally ruling out pay increases is not good faith.

    By the way, isn’t the recession over? If so, why the pay freeze? If not, why do the Nats keep telling us it is?

  9. Tim Ellis says:

    A lot seems to be made of Mr English getting a cleaner for his ministerial house. I understand that most ministers have had cleaners and are able to claim for cleaning expenses. Did the last Labour occupant of Vogel House not claim for cleaning? How about the gardens in Vogel House? Did the last occupant do all the gardening themselves?

  10. Trevor Mallard says:

    Ministerial house Tim – or his primary place of residence – and what was the pay rate again? And why should the pay rate at his home be higher than a hospital with all the public health implications.

  11. ghostwhowalksnz says:

    Apparently Jim Anderton and his wife did a lot of gardening at Vogel House. Plus they still had a home in Christchurch.

    Bill English has a big family ,’ordinary’ NZers have their kids help on housework,lawns etc.
    But very little about Englishs house/home/leased property seems to be ‘ordinary’

  12. Nathan Mills says:

    Could be worse, could be in the NZDF. Wage freeze and nil promotions til the end of this financial year! Hooray for no union!!!!

  13. bikerkiwi says:

    The private sector have pay freezes in a large %age of businesses.

    Im personally under one as well – in addition to having my bonus for the year held back.

    BUT – I understand the need for this and that its helping stop our company going broke. Its a necessary sacrifice.

    There is no reason that the state sector should not feel the pain as well. Times are tough and the truth of the matter is that keeping on giving pay rises when the money is not there to pay for them if only going to put the country into a bigger and bigger hole.

    Labours fiscal policy of spend, spend, spend, spend scares me.

  14. ghostwhowalksnz says:

    bikerK grow up you are just repeating words from Bill English that Labour spends excessively. Yet in his first Budget he has spent more than the last labour budget.

    Spend more on private schools does that scare you?
    Spend more broadband run by private businesses , does that scare you
    Spend more on a ‘party central’ for RWC , does that scare you
    Spend $50 mill on a cycleway does that scare you ?
    Spend more on motorways does that scare you?

    The list goes on.

    Key is happy to open fire stations and police stations built under Labour but you can bet no new ones will be build for many years

  15. bikerkiwi says:

    with the RWC – im sure the nats are spending less than the BILLION dollar stadium mallard wanted to build (despite being told it couldnt be finished in time).

    with the motorways – Im sure they are doing a lot of good for the country with 1.5 BILLION dollars they saved canning labours vote-buy tunnel in Mt Albert.

    more on motorways – well – the country needs to move – and if you havnt noticed the roads are blocked – and I know that you think public transport for all is the answer – but many of us dont. So – I actually think thats a great investment – and it could all be funded out of the money the labour government threw away on cullans train 690 million dollar set. At a loss of a MILLION dollars A DAY for value that was never there (as recently reported).

    Yep – I see a pattern.

  16. LabRat says:

    ghostWW, let’s not forget that this government spending is in large part meant to be part of a stimulus package. I’m appreciative that the McNat’s have spent less pro-rata than the US and other countries in their stimulus packages, but that is still what this spending is meant to be. I’m also mindful that many commentators in blogosphere and media have voiced loudly their opinions that our stimulus spending was inadequate. Stimulus envy huh!?

  17. jabba says:

    some of you sort of suggested I was against our medical, fire fighting people etc getting a pay rise .. they deserve it as do the Police, Teachers, social workers etc but where does the money come from?
    Bills cleaner, MP’s perks and money for private schools etc are red herrings.
    Who will benefit from road building, RWC stadiums, waterfront buildings, a national walkway .. tradesmen/woman, labourers, suppliers of material who employ shop staff etc. Most are people losing their jobs and possibly Labour voters.
    The comment about tory fats cats getting richer, well some maybe but a huge number of them have taken a hammering. Many of these people also generate income for the low paid. PLEASE don’t count the thieving pricks who got rich ripping people off in the financial sector playing funny money games.

  18. bikerkiwi says:

    ghosty – dont forget the 100 MILLION dollar PER YEAR idea from the labour conference to give away free condoms.

    http://tiny.cc/Jkzm1

  19. ghostwhowalksnz says:

    Thats using retail price and DPF arithmetic. But it was only an idea at the conference, ideas that came out of nationals conference were the old chesnut of fast jets for the airforce … $1.5 billion

  20. jabba says:

    imagine how much money would be available for pay rises if “we” didn’t own the Railways again. If we had to buy it, why so much. Toll would have begged the Govt to take it back with better negotiations
    I a fan of moving freight by rail but!!!!!!!!!!!!!!!!

  21. ghostwhowalksnz says:

    The railways are a business so the money paid is an ‘investment’.
    I know you wouldnt understand that but generally a business retains its value or even grows. Look at Air NZ , worth a more than what the government paid for its share. And thats in a big slump.
    Plus its called trickle down many other businesses depend on rail transport including the inter island ferries . Lets just throw it all away and tie up the ferries we dont really need the South Island up in Auckland

  22. jabba says:

    Buying/building rolling stock and maintaining track, bridges and upgrading signals etc will cost 100’s of millions. Fay/Richright and friends stripped the Railways making millions for their shareholders (mainly themselves) and eventually Toll arrived. They had no money to upgrade and then father xmas in the shape of Cullen appeared god bless him.
    I worked in a Railway Workshops and then an Area Office in Auckland for 13 years, mainly in Acconts and know the huge bucks it costs.
    As I said, the counrty needs rail but it has been handled badly since the 80’s at least.

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