Public-sector strikes 'just the beginning' - union

Strike action by thousands of low-paid workers in hospitals and other core government services over public sector pay is "just a taste of things to come", union bosses warn.

About 6500 workers walked off the job yesterday in protest at what they say is a Government pay freeze.

They were members of the Service and Food Workers Union and the Public Service Association, and included hospital cleaners, kitchen workers, orderlies and administration staff, parliamentary security officers and support workers for the disabled and elderly.

School support workers, who are also locked in contract negotiations, joined the protest rallies to show their support.

State Services Minister Tony Ryall denied there was any state sector wage freeze, but public sector chief executives had been told any wage increases would "need to be funded from within existing resources".

"People know that money is tight and restraint is needed. The Government is already borrowing $250 million a week just to maintain current funding levels and services."

Council of Trade Unions president Helen Kelly said the minister was trying to avoid responsibility.

Though the economy was facing tough times, it was not fair to make low-paid workers bear the cost, she said. "New Zealand has one of the lowest debt levels in the OECD ...

"We need people to start spending to get us out of recession, but instead workers are essentially being asked to take a two percent pay cut [taking inflation into account]." More strike action was inevitable, she said. "This is just a taste of things to come."

Service and Food Workers Union head John Ryall said the Government's hardline message to workers was hypocritical in view of the $2 billion deal with the Maori Party over the emissions trading scheme, and its commitment to spending billions more.

"We don't have a problem with the Government acting on climate change but it's a matter of priorities. We have workers doing some of the most important jobs, who are struggling to make ends meet."

IHC chief executive Ralph Jones said the organisation was unable to offer staff more pay because government funding had increased only 1.2 percent.

"This is insufficient to cover proposed increases to ACC levies, let alone the rise in other costs such as KiwiSaver, electricity and food."

Talks between the Justice Ministry and court staff (members of the PSA), who went on strike over pay this month, broke down yesterday.

Meanwhile, about 30 journalists, printers and sales staff at The Southland Times walked off the job in protest at Fairfax's refusal to offer a cost-of-living increase.

Union organiser Trevor Hobbs said the company had no trouble funding a $5 million golden handshake for departing chief executive David Kirk.

Southland Times general manager Gareth Codd said the strike had no effect on the paper's publication. He declined to comment on the union's claims.

- © Fairfax NZ News