Govt must act to close widening gap between private and public sector pay

The Public Service Association (PSA) says today’s release of the State Services Commissions report Human Resource Capability in the New Zealand State Services (HRC report) shows the need for Government to act to close the widening gap between public and private sector pay.

Richard Wagstaff, PSA National Secretary, said “The HRC report shows public service wage increases of only 1.1% in the year to June 2014,”

“In the last four years, private sector wages have increased 38% faster than public service pay, meaning the pay gap is widening further.

“To deliver quality public services, New Zealand needs to attract the best people to our public service, and pay is a significant factor in this.

“The public service skews older than the general workforce, and if public sector jobs aren’t attractive to young workers then we will face significant difficulties in the coming years.

“The Government’s squeeze on funding is being mostly felt by the staff who provide the public services New Zealanders rely on.

“Swift action is necessary to ensure that public service departments have enough money to invest in the quality staff they need,” said Richard Wagstaff.