Is Labour supposed to be the party of labour or of capital? It’s often hard to tell these days, and many in the labour movement and the political left are feeling betrayed this week by the Government’s announcement of a pay freeze for public sector workers. The Government has essentially directed all their departments and agencies not to give any employees earning over $60,000 any further rises for the next three years, except in “exceptional circumstances”. It’s effectively a pay cut for the vast majority of public sector workers, as the cost of living and inflation will drive down the value of their