News

As New Zealand enters 2025, collective bargaining settlements are evolving in response to shifting economic conditions. Data from various sources across the country provides insights into the outcomes of settlements over the last twelve months and provides advice about the potential situation going into 2025.

The easing of inflationary pressures, currently at 2.2%, places it comfortably within the Reserve Bank’s target range of 1-3%, projected to persist until at least December 2026. Nonetheless, significant challenges remain, particularly around the rising minimum wage, ongoing living wage discussions, and reforms in migrant worker policies, all of which continue to shape wage negotiations.

Geopolitical factors and a declining currency are adding to the complexity, raising the cost of imported goods and operational expenses, with potential implications for inflation. Despite these challenges there are positive indications of economic recovery, with recent trends indicating a gradual stabilisation of business confidence and a more balanced approach to wage settlements. 

For a detailed analysis of the collective bargaining trends and economic factors shaping these agreements, click here to read more.