Spot the difference

November 6, 2009

John Key welcomes no pay rise decision.

Bus drivers snub $500 olive branch and what amounts to a 12% pay rise.

Obviously there is a big difference to the current pay rates of MPs and bus drivers.

But whatever the starting sum is, a 12% pay rise in the current economic situation appears to be generous.

There comes a time when continuing to turn down an offer starts costing more than the eventual pay rise is worth. If the dispute between bus drivers and NZ Bus isn’t settled soon the workers will find they’re costing themselves money.

Update: Adolf has pointed ou in a comment that the 12% as over three years which is less than 4% but the $500 adds 1.3% upfront.

That’s not nearly as generous as I first thought but it is still above the inflation rate and that plus a $500 bird in the hand may be better than the unknown number of birds still in the bush.

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