Worker income takes a tumble, says pay survey

By KARYN SCHERER

If your pay packet has got that shrinking feeling over the past year, you are not alone.

A survey of more than 500 companies shows many workers had pay decreases in the year to March, while their bosses received increases below the rate of inflation.

The survey of salaries by Cubiks New Zealand has found top executives had a median 2.5 per cent pay rise in the year to March, while their staff's pay dropped by 0.3 per cent.

The median figure the previous year was an increase of 7.2 per cent for top executives and 5.1 per cent for general staff.

The survey shows that while base salaries of both top executives and general staff have exceeded inflation, overall remuneration has not.

Other findings, for the year to March, include:

* Base salaries for top executives increased by 6 per cent (up from 5.4 per cent last year).

* Base salaries for general staff increased by 4 per cent (up from 3.9 per cent last year).

* Three-quarters of all top executives who remained in the same job received an increase.

* Just under 20 per cent of all top executives received a pay increase of more than 10 per cent (up from 18 per cent last year).

* Just over 10 per cent of the companies surveyed reported an increase in the number of staff on collective contracts.

Cubiks head Kevin McBride said the survey confirmed trends that had been apparent for some time.

"As far as general staff are concerned, I suspect their pay might have been affected by [one-off] bonuses for Y2K last year."

Mr McBride said it was too early to note any trends in how the Employment Relations Act was affecting pay negotiations.

"The one interesting thing is that more top executives received increases and that's actually the first time for a long time. Historically, there's been marginally more general staff receive increases."

The Council of Trade Unions secretary, Paul Goulter, said the survey showed a double standard on salary increases was continuing.

He doubted many staff were affected by New Year's Eve bonuses.

While it was probably true that companies were pressured to match international salaries, "the slightest hint of workers saying 'we want to drive for wage increases higher than the rate of inflation' is regarded as bad boys pulling the economy down."