Union rejects claim its 5pc pay crusade failing

A move by unions to accept no less than 5 per cent wage rises is "dead in the water", says an employers' group - a claim rejected by the country's largest union.

The Employers and Manufacturers Association said yesterday that unions were settling many wage claims for less than 5 per cent.

"Unions may still be saying 5 per cent is the going rate but many employers are now finding this is not the case," said association spokesman David Lowe.

"Old-style standover tactics have failed - settlements are regularly being reached at substantially less than the 5 per cent."

But Engineering, Printing and Manufacturing Union national secretary Andrew Little described the claim as ridiculous.

Of the pay claims settled since the EPMU began its "Fair Share - 5 in 05" campaign in late February, 137 were for 5 per cent or above, four settled between 4 and 5 per cent, and three under 4 per cent, he said.

Of the four between 4 and 5 per cent, three were actually worth 5 per cent when conditions were included.

"The others we agreed were genuinely distressed enterprises."

Mr Little said employers were putting heavy pressure on workers to accept less than 5 per cent or miss out on back pay and discretionary benefits.

But, "clearly the trend is for settlements around 5 per cent".

- NZPA