The Public Sector Worker Backlash against Labour

Dr Bryce Edwards is Political Analyst in Residence at Victoria University of Wellington. He is the director of the Democracy Project.

Is Labour supposed to be the party of labour or of capital? It’s often hard to tell these days, and many in the labour movement and the political left are feeling betrayed this week by the Government’s announcement of a pay freeze for public sector workers.

The Government has essentially directed all their departments and agencies not to give any employees earning over $60,000 any further rises for the next three years, except in “exceptional circumstances”.

It’s effectively a pay cut for the vast majority of public sector workers, as the cost of living and inflation will drive down the value of their incomes during that time. It will apply not just to those in government departments (or the core public service) but also to workers in other government agencies such as schools, hospitals, the police force, prisons, defence forces etc.

Why is Labour doing this? According to Public Service Minister Chris Hipkins it will save money, and allow the Government to pay off debt. Finance Minister Grant Robertson has attempted to frame the move as being about improving inequality because the directive doesn’t apply to the bottom quarter of income earners in the public sector. But the reason is probably to send a strong message to centrist or more conservative voters that the Government is fiscally conservative and not too pro-worker.

If Labour needed any sign that this anti-worker stance was achieving the desired impact, blogger David Farrar (National-aligned and also founder of the Taxpayers Union) was able to assure them that they’d done the right thing, praising them for doing even what even a National Government would never dare to do – see: Robertson and Hipkins become honorary members of the Taxpayers’ Union.

Condemnation of Labour’s Pay Freeze

Others see Labour’s pay freeze as an outrageous assault on a work force that doesn’t deserve such a punishment. Yesterday’s Stuff newspaper editorial took one of the strongest stands for public sector workers, saying that their hard work throughout the last year of crisis has been unrewarded and spurned by an ungrateful government – see: Pay freeze stretches public sector loyalty.

Here’s how the newspaper sees Labour’s message to the workers:

“well done, New Zealand, you magnificent team of five million. Well done to the essential frontline staff who worked so long and hard in the fight against Covid-19. Well done to the border workers; the MIQ, customs and immigration staff; also the defence force, police and healthcare workers. Well done all. We offer our thanks but no other reward. In fact, as part of that ongoing struggle against this stultifying pandemic we offer only more pain, and the prospect of no pay rise for four years. You’re welcome.”

Stuff

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