Family Care ‘cushion for drop in pay value’

Press, 3 August 1985, Page 9

Family Care ‘cushion for drop in pay value’

PA Wellington The drop in real wage rates over the last year has been cushioned by the Government’s Family Care package, says the Minister of Labour, Mr Rodger. The Statistics Department gave figures yesterday showing that wages increased 6.9 per cent in the year to June 30. However, when inflation is taken into account, real wages have in theory dropped more than 8 per cent.

Mr Rodger said real incomes had to drop in the short term, but the effect of that policy on the lower-

paid had been cushioned by Family Care. Although real wage rates might have dropped at least 8 per cent, real incomes had not fallen to the same extent, he said. “Wage rates may have done, but income has not, because in large part those at the lower end of the income range with family commitments have been supported by Family Care. “So, in fact, income at the bottom end of the range, as far as wage and salary earners are concerned, has improved, relative to the rest of the community.” The Statistics Department

said the rise in the provisional nominal weekly wage rates index resulted from the condensed wage round which began last December.

Wages within the jurisdiction of the Arbitration Court, which covers mainly the private sector and local authorities, were up 6.5 per cent, and public sector wages rose 7.6 per cent, the department said.

However, it said the full impact of the wage round on the March and June indexes would not be known until all negotiations had been settled and increases implemented.