January 25, 2026

#national Unions Say Govt Must Act as Public Sector Workers Face Rising Cost–of–Living Pressures

Matthew Tukaki Posted On January 25, 2026

Trade unions and worker advocates are calling on the New Zealand Government to take decisive action ahead of upcoming collective bargaining talks as inflation continues to erode the real incomes of public sector workers, according to a statement released today.

Representatives from public sector unions say the Government – as a major employer itself – has a responsibility to recognise the squeeze on household budgets and put forward fair pay offers that reflect the rising cost of living, rather than “rhetoric and token responses”. They warn that without meaningful increases, widespread strike action across the public sector is a real possibility.

Unions argue that this moment comes amid growing economic pressure on workers whose wages have struggled to keep pace with inflation, leaving many trying to make ends meet while prices for essentials continue to rise. Stronger pay outcomes from bargaining – backed by the Government’s good-faith engagement – are seen by workers as an urgent priority.

The situation comes at a time when protections around wage setting mechanisms in New Zealand have shifted in recent years – including the repeal of the Fair Pay Agreements framework by the previous Government – which at the time was intended to provide a structure for industry-wide bargaining over pay and conditions but was scrapped in late 2023 amid political debate about its impact on employers and economic flexibility.

Public sector workers provide essential services that affect every community – from education and health to public safety and local government. Unions say that ensuring pay increases reflect inflation not only protects workers’ living standards but also supports recruitment and retention in critical public services as the country continues to face workforce pressures.

As collective bargaining rounds approach, unions are urging the Government to show leadership, respect public sector staff, and strike fair deals that recognise their contribution to Aotearoa – and to avoid industrial unrest that could follow if workers feel ignored.

Radio Waatea will continue to follow developments in the bargaining process and bring updates from unions and government spokespeople as they respond.