The NZCTU Te Kauae Kaimahi is concerned by new data released by Statistics New Zealand showing that the cost of living increased by 3%, more than public and private sector wage growth.
"Wages are rising by less than inflation, meaning all workers, regardless of sector, are now falling behind average living costs. The Government need to go to Specsavers for its laser-like focus on the cost of living," said NZCTU Economist Craig Renney.
"The prices of things that New Zealanders can't avoid are rising quickly, putting more stress on already overstretched household budgets.
"Electricity prices are up 11.3%. Gas prices are up 15%. Fruit and veg prices are up 7.5%. Contents insurance is up 9.3%. Going to the GP costs 10.3% more than last year. Rents are still rising faster than wages (2.6% vs 2.4%) - which is often the biggest cost working families face.
"This data shows the pressures that working families are facing when they in their day-to-day spending. Cuts to government investment - particularly water infrastructure - have helped drive higher local authority rates bills.
"The Government's failure to regulate the electricity market is leading to the highest annual cost rises since the late 1980s according to Stats NZ.
"At a time when the Government is taking away jobseeker benefits from 18- & 19-year-olds, Stats NZ recorded a 22.6% increase in the cost of tertiary education. We know that the Government has already halved its support for apprentices, yet we have a huge youth employment problem. It is another symbol of a government that is out of touch with the public and what New Zealanders and the economy really need.
"There is an urgent need to make sure that working people and their families don't continue to bear the brunt of the Government's failed attempt to manage the cost of living.
"Workers pay is now actively going backwards, and pay deals proposed by the Government would almost certainly make that worse. It's time for a different approach so that workers don't see living standards falling even further in the future," said Renney.
