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Home / Hawkes Bay Today / Business

No quick fix for low pay

By by Partrick O'sullivan
Hawkes Bay Today·
25 Feb, 2011 08:00 PM2 mins to read

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Rural jobs tend to be lower paid. Murray Douglas, Hawke's Bay Chamber of Commerce CEO Hawke's Bay workers are less likely to receive a pay rise than other parts of the country, as the province's wages increasingly fall behind the rest of New Zealand.
John Key said last week that Hawke's Bay would not get a quick fix, and its income profile would always be lower than other regions.
"I think you'll always be seasonal, because of your strong horticulture and agricultural roots."
Mr Key made the comment shortly after opening McCain's new vegetable processing plant, which now employs more seasonal workers.
The median working wage for Hawke's Bay/Gisborne in the June quarter last year was $36,920 compared with the national figure of $39,884. Wellington was highest at $43,368.
Incomes in Hawke's Bay plummeted when seasonal workers were laid off. Many went on a benefit, unless their partner was still working.
The unemployment rate in Hawke's Bay/Gisborne was 7.1 per cent compared with the national rate of 6.8 per cent.
A survey by internet job site Seek showed Hawke's Bay offered the second-lowest average salary level in New Zealand, at $57,510 per year, ahead of a wine-glutted Marlborough at $52,785.
The study measured salaries offered on seek.co.nz for September and November.
Wellington showed the highest level of salaries offered at $74,392, ahead of Auckland, West Coast and Taranaki with the national average coming in at $69,140.
Annie King, employment consultant with the Employers Association, said Hawke's Bay wages were driven down because of the many people eager to move here.
"People like coming to the Bay; some even move here to take a temporary job with an eye to securing a permanent one," she said.
"We do not have the employment and retention issues that some other areas have."
Hawke's Bay Chamber of Commerce CEO Murray Douglas said the numbers were broadly consistent with Hawke's Bay being in the lower quartile for salaries.
"There are several reasons for our position. We have fewer graduates than most areas of New Zealand, and graduates tend to attract higher salaries.
"We have more part-time jobs than most areas because of our seasonal economy. We have more rural jobs and rural jobs tend to be lower paid."

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