New Zealand Prime Minister Jacinda Ardern, alongside government ministers and public sector chiefs, will take a 20% pay cut for six months in order to show solidarity with several Kiwis in the private sector who have either lost their jobs or faced salary cuts.
Ardern said that this decision would not apply to frontline public service workers such as teachers and healthcare professionals. Ardern does not have the authority to extend this legislation to members of parliament (MPs). However, Parliament itself does.
Promisingly, Ardern’s decision has received cross-party support. Opposition leader Simon Bridges also agreed to a 20% pay cut, while ACT leader David Seymour called for the policy to be applied to all MPs.
Auckland Mayor Phil Goff and several councilors in the city also followed Ardern’s lead and announced a 20% pay cut for six months as well.
Roughly 1.5 million Kiwis have signed up for the government’s wage subsidy program to cover a loss of income. It is projected that unemployment could rise from 4% to 8.5% and that the economy will shrink by 7.2% this year.
New Zealand has close to 1,400 coronavirus cases, 649 active cases,728 recoveries, and 9 deaths.
When asked if Australia would consider similar measures, Prime Minister Scott Morrison said, “It’s not something that’s being considered.”
Image Source: Newshub
New Zealand PM, Ministers, Public Sector Chiefs Agree to 20% Pay Cut
Opposition leader Simon Bridges also agreed to take a pay cut.
April 15, 2020
