The Government must be getting alarmed over the wage demands of nurses, just the first group of public sector employees that are lining up for negotiations this year.
This week the NZ Nurses Organisation "strongly rejected" a $500 million offer from negotiators for all the country's district health boards that would have given nurses a 9 per cent increase in their base rates by August next year.
Unless they get an improved offer they plan to start staging one-day strikes in public hospitals.
Meanwhile primary school teachers began meeting this week to consider an offer of a pay rise ranging from 2.2 per cent to 2.6 per cent a year for three years. Their lead negotiator said the overwhelming mood of the first meeting, attended by 2500 members of their union, was that the offer fell well short of what was needed.
When the union announced last year it would be seeking a 16 per cent pay rise, the figure looked like a wildly optimistic opening bid. Now, in the light of the offer the nurses have rejected, it looks all too serious.