1.5% raise for MPs, what next for public sector employees?

Parliament will pass legislation this week giving MPs a 1.5 percent pay rise.

Prime Minister John Key says the bill will be debated under urgency and go through all its stages in a single day.

He announced last week the Government would stop the 5.5 percent pay rise – $8200 a year – awarded by the Remuneration Authority.

Instead, the pay rise will be linked to the average public sector pay rise as measured by Statistics NZ.

For the year starting July 1 2014, it was 1.5 percent.

The same measure will be used in future years to set MPs’ pay rises.

Mr Key says the bill he’s bringing in will remove the Remuneration Authority’s discretion.

Can you see the flaw in this plan?

 

the pay rise will be linked to the average public sector pay rise

Call me a cynic, but I prefer realist: ? who can see public sector pay rises sky rocketing now?

I suggest the likes of the PSA and PPTA don’t protest too loudly about this, because right now there is the perfect incentive for politicians to support decent public sector pay rises – it’s the only way they’ll get their own.

Sneaky and underhanded?

Or just a case of good intent being rail roaded by the law of unintended consequences?

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