More strike action is planned this week by public servants as the Government continues to struggle to rein in the huge wage increases being demanded of it.
ACC doctors are set to strike on Wednesday after their bosses refused to budge when more than two-thirds of its senior doctors walked off the job last week.
Ministry of Business, Innovation and Employment and Inland Revenue staff are planning to take action today after already striking on July 9.
Nurses are still to ratify their agreement, saying it is more than about money — although the money on offer is generous by any standard against which most New Zealanders would measure.
Teachers and the police are also after elevated wage increases, despite inflation being at 1.5%.
In many cases, public servants are blaming the previous National-led administration for failing to provide "adequate" cost-of-living adjustments.
Unions, the very organisations which help support the Labour Party, are using the Coalition Government to try to reclaim what they consider lost ground, just in case Prime Minister Jacinda Ardern leads a one-term government.
On the face of it, the overwhelming amount of money being sought by public servants, along with much improved conditions, will ensure this will happen.
The Government is planning to rewrite New Zealand’s industrial relations law. Employer organisations have taken out full-page advertisements around the country to show their opposition. As strike action continues, there is likely to be more.
Strikes are costly for both workers and business, and should be seen as a last resort. Concern about how the future of New Zealand’s industrial relations landscape will look like within a few years is being exacerbated by strike action — both threatened and real.
New Zealand has a low productivity rate. Improved productivity is a key to higher profits for employers and higher wages for employees.
Public servants are pointing to the larger-than-expected financial surpluses being forecast by the Treasury as a means of paying their wage demands. However, they are only thinking short-term about themselves rather than the needs of the country.
If Finance Minister Grant Robertson decides to allow the inflated wage demands to be settled, money earmarked for some other projects — such as affordable housing, health and education infrastructure, and social wellbeing — will need to be put aside.
If the Government pushes through with its intentions to return to the days of multi-employer industrial agreements, strikes by private-sector workers will undoubtedly follow.
Strike action has put ministers in very vulnerable positions. If the Government gives in to the high pay increase for nurses, after saying there is no more money, teachers, doctors, the police and others paid from the public purse will pursue like agreements.
Pressure will come on to private sector employers to match like-for-like, despite falling business confidence across the board.
The Government’s insistence on forming working parties and holding inquiries is stymieing its ability to introduce meaningful policy to grow voter support.
After nine years in Opposition, Labour was still not prepared for office and it shows. Acting Prime Minister and New Zealand First leader Winston Peters is proving to be statesman-like when compared with most of his Cabinet colleagues.
Mr Robertson is so far standing by his Budget Responsibility Rules which include maintaining an operating surplus, reducing net core Crown debt, taking a prudent approach to expenditure and creating a fair taxation system.
Any deviation will not be easily accepted by voters.
