This is why it was so hard to believe the Government’s rationale for a public sector wage freeze when it is already pouring upwards of $50billion into the economy in response to Covid-19. But fiscal responsibility and the need for “moderation and restraint” were indeed the justifications for the proposed three-year freeze — or “restraint” — on public sector wages over $60,000 (except in exceptional circumstances). On the face of it, however, the policy would adversely affect approximately 75% of public sector workers, or about 15% of all workers in New Zealand. But nobody would argue the economy is out of the woods yet, so the public sector wage policy was something of a mystery. It shouldn’t come as a shock that some will look for better opportunities outside New Zealand’s public sector.

Source: Otago Daily Times May 12, 2021 16:30 UTC