New Zealand Public Servants Strike Against Pay Cuts as Austerity Measures Bite

About 10,000 public servants in New Zealand will join a nationwide strike on Wednesday, making it the country's largest industrial action since October 2025. The workers from various government departments, including the Department of Internal Affairs and the Ministry of Social Development, are protesting pay cuts below inflation rates.

The annual rate of inflation stood at 4.1 percent for the 12 months to June, while petrol prices increased by 27.5 percent and electricity prices rose by 12 percent. Meanwhile, wages increased by only 2 percent in the public sector, with some workers facing a pay cut as low as 1.7 percent.

Prime Minister Christopher Luxon dismissed the strike as 'politically motivated', but the Public Service Association (PSA) claims it is to demand a fair pay deal. PSA leader Fleur Fitzsimons also supports increasing military spending, which will double from 1 to 2 percent of GDP, according to Labour's plans.

The Socialist Equality Group argues that workers must break free from the union bureaucracy and organise their own demands through rank-and-file committees, independent of the PSA and other officials. This is necessary to resist austerity measures and militarism, which are driven by the ruling class.