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Teachers' Pay

Posted on 27 May 2010 - 10:17 AM

We're in for some messy debates

Demands for a 4% pay increase is likely to fall on deaf, or at least, stubborn, ears. Why so?

Consider:

the so-called economic 'recovery' is not really taking place
This is what Ganesh Nana, BERL economist said earlier this month, on 6th May: "...the jobs and the jobless numbers continue to show an economy requiring a wise and steady hand. Admittedly, compared to December 2009 the labour market is looking rosier. But, compared to this time last year there remains much lost ground to catch up."
House prices are stagnant and even falling back now
With the Budget came the warning that NZ debt levels are at $168 bn, or 90% of GDP.
Anyone with domestic debt like credit cards or hire purchase will recognise that interest is a killer - so imagine what $168 bn can generate in interest?
the public sector is having to show a lead in financial discipline
The Ministry of Education is having to tighten its belt as more of the education dollar is reprioritised to 'front-line' spending

Given all of this and more, how can teachers demand more pay? Yet, consider that:

living costs are increasing
dairy prices are on the rise
the ETS is going to impact
GST is going to impact

Don't expect the Ministry to be very sympathetic, however. It is likely that there will be some mangled form of compromise, but before that happens, expect some messy and turbulent debates and even work disruptions.

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