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The Conversation: Why NZ s public sector wage freeze ignores the lessons of history

Why NZ s public sector wage freeze ignores the lessons of history

Opinion: Ardern s public sector pay freeze goes further than Muldoon ever did

With the Government facing a serious backlash over its public sector wage freeze policy, that sound you hear could be the ghost of Rob Muldoon chuckling. As Finance Minister in the Holyoake Government (1960-72) and later as Prime Minister (1975-81), he knew how tempting - and difficult - pay freezes could be. That didn t stop him using them, but not even he would have contemplated what the current Labour Government has announced. Targeting only public servants earning over NZ$60,000, for three years and with no apparent provision for inflation or cost of living increases, would have been anathema to Muldoon.

Alexander Gillespie: Why a wage freeze ignores the lessons of history

Alexander Gillespie Opinion - With the government facing a serious backlash over its public sector wage freeze policy, that sound you hear could be the ghost of Rob Muldoon chuckling. Rob Muldoon knew how tempting - and difficult - pay freezes could be, Alexander Gillespie writes. Photo: Alexander Turnbull Library As finance minister in the Holyoake government (1960-72) and later as prime minister (1975-81), he knew how tempting - and difficult - pay freezes could be. That did not stop him using them, but not even he would have contemplated what the current Labour government has announced. Targeting only public servants earning over $60,000, for three years and with no apparent provision for inflation or cost of living increases, would have been anathema to Muldoon.

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