Costs and Wages
Some interesting figures have recently been released, which will not necessarily make wage and salary negotiations easy for local employers. The CPI figures show inflation at only 0.8% for the year to 31 December 2014. However the latest Household Economic Survey (Income) for the 2 years to June 2014 shows average household spending on housing costs rising by 11.1% over a 2-year period – and even higher in Canterbury where rental costs increased 0.6% more than the country average.
While the 0.8% CPI figure may be appropriate for those on higher incomes (especially where they own their own homes), for lower-paid employees in Canterbury, the higher costs of accommodation will mean their expenses have increased significantly more.
If you wish to talk through a wage increase strategy, why not give me a call.