Westpac NZ freezes staff pay

Bank workers' union Finsec's four days of bargaining for a new collective agreement with Westpac New Zealand was adjourned with the bank refusing to offer any pay rise.

With the government's emissions trading scheme coming in to effect on July 1 and an increase in GST rate to take effect later this year, New Zealand's inflation is expected to hit as high as 5.9 per cent next year.  Under this circumstance, a pay freeze would severely cut the value of pay, argues Finsec.

"This pay freeze sends an ominous signal to all New Zealand workers. When large profitable banks like Westpac are trying to freeze staff wages in the face of rising costs for employees, it indicates there could be considerable strife ahead," Finsec campaigns' director Andrew Campbell said in a media statement.