Briscoes and Rebel Sport staff are the only ones offered pay increases less than cost-of-living rises. Photo: Hazel Redmond Photographer
Briscoes and Rebel Sport workers have rejected a pay deal that includes increases they say are lower than the cost-of-living increases - but economists say they are not alone.
Workers First Union members at Briscoes and Rebel Sport said the company would not offer them a pay deal equal to the 3 percent annual the cost-of-living growth, as measured by the Household Living Cost Index in December.
Christchurch Rebel Sport sales assistant Samuel Gilray said staff were frustrated with their pay negotiations.
"I like my job and I like working for the company, but the last two years have been some of the most stressful of my working life and many of us are feeling frustrated after these negotiations," he said.
"This is one of the most successful New Zealand companies and they don't seem to think we deserve an actual pay rise that takes us forwards, rather than backwards.
"That little extra to take us into positive territory could be the difference between people going to work motivated and happy, rather than disappointed and under financial pressure."
Workers First Union organiser Nicholas Mayne said anything other than an increase that kept up would be an effective pay cut.
He said union members had given formal strike notice for "non-compliance with any and all employer requirements to refrain from speaking to news media", and that would continue until a collective agreement was ratified.
Council of Trade Unions policy director and chief economist Craig Renney said the latest labour cost index (LCI) indicated 46 percent of New Zealand workers had an increase in pay less than the CPI rate of inflation last year.
"The minimum wage has gone up by less than inflation two years in a row."
He said the household living costs increase was higher again and the outlook was for less strong wage growth, he said.
"With rising unemployment, many people are looking at cooling wages."
Infometrics chief forecaster Gareth Kiernan said, between December 2020 and December 2022, consumer prices rose by 13.6 percent as measured by the CPI, but the unadjusted LCI increased by just 10.1 percent.
"The gap (in terms of total increase since December 2021) was still almost as wide by September 2023, with the total increases at that point being 18.3 percent and 14.8 percent respectively.
"However, over the 15 months since we have data for - up to the end of 2024 - the CPI has risen just 2.7 percent, while the unadjusted LCI has risen 5.8 percent.
"These figures mean that, since inflation started picking up in 2021, both the CPI and unadjusted LCI have lifted 21.5 percent.
"The key is that wage catch-up has been occurring since September 2023, noting of course that the CPI does not capture cost-of-living pressures that will have arisen from higher mortgage rates."
Briscoes has been approached for comment.
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