KEY POINTS:
Employees with company cars may find it more difficult to get a pay rise this year in the wake of rising food and petrol prices.
Petrol has gone up 12 cents a litre this week and the cost of vegetables is up 11 per cent this month.
Alasdair Thompson, CEO of the Employers and Manufacturers Association, said some employers are incorporating the rising cost of petrol into the annual pay rises of those with company cars.
He said if the cost of running a vehicle goes up by $500, pay increases will be reduced by that same figure.
Mr Thompson said that causes problems in workplaces because employees think they should get a full pay rise.
He said many people believe their bosses should be paying them more when the cost of living rises so much, but he said employers cannot be made responsible for a nationwide problem, as pay rises only increase inflation.
- NEWSTALK ZB
