Wage freeze aims to keep rates down

Auckland City Councillor Cathy Casey. Photo / Martin Sykes

The 2300 staff at the Auckland City Council will not be getting a pay rise this year so their employer can keep rates down.

Chief executive David Rankin said yesterday he had removed $3.5 million for wage and salary increases from this year's budget in response to a political wish to keep rates as low as possible.

The effective wage freeze will reduce the overall rates increases from 2.5 per cent to 2 per cent.

Mr Rankin said some staff could in theory get a pay rise by achieving savings, "But the odds of most staff getting an increase are not high".

The pay freeze will save the average ratepayer $7 a year.

"I'm aware there will be some unhappiness among staff, but there is also a realism with the unprecedented things going on in the economy," Mr Rankin told a council budget meeting.

The freeze has upset the left-leaning City Vision ticket and the Public Service Association, which represents 500 council staff.

"This council has no moral right to penalise workers to keep rates down," said City Vision councillor Cathy Casey.

PSA national secretary Richard Wagstaff said the union was to negotiate a collective agreement with the council this year.

"We think those negotiations are the right forum to discuss pay and working conditions for council staff.

"There are many issues to discuss in the current economic environment and we think that good faith negotiations are the place to have that discussion."

City Vision believes staff should get a pay rise this year and wants councillors to take a 3 per cent pay increase from the Remuneration Authority.

Citizens and Ratepayers' leader David Hay said there was no choice but to accept the authority's recommendation, but C&R would not take a salary rise. He said the money from the increase would go into the consolidated fund and be spent on a piece of public art.

The proposed 2 per cent rates rise is an average figure and will vary. Generally speaking, the rise will be higher for low- and middle-value properties and lower for high-value properties.

Tens of thousands of properties can expect rates rises of up to 7 per cent. For $1 million-plus properties, the rates reduction will be about 1 per cent.

The reason for the variance is C&R's decision to increase the uniform annual charge from $162 to $250 to even out the rates burden between high- and low-value properties.

WHAT YOU SAVE
Average rates increase on a property valued at $490,000

* 2 per cent - $1490
* 2.5 per cent - $1497
* Saving - $7