Category: Council Of Trade Unions

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Unemployment climbs above 5%

Source: Council of Trade Unions – CTU

Data released today by Statistics NZ shows that unemployment rose to 5.1%, with 33,000 more people out of work than last year said NZCTU Te Kauae Kaimahi Economist Craig Renney. “The latest data shows that employment fell in Aotearoa at its fastest rate since the GFC. Unemployment rose in 8 out 12 regions. 2.5m fewer hours were worked last year. There is a real and growing problem in the labour market.”

This data should be a wakeup call to the Government about the economy. Renney said “Unemployment is a lagging indicator and is forecast to continue to keep increasing. Nothing in this data suggests that these forecasts are going to change. The number of people who want more work and can’t get it is at its highest rate since COVID.

“Ahead of Waitangi Day, we should note that unemployment for Māori is nearly twice the rate of the general population at 9.2%. 5,700 more Māori are out of work than last year. Pacific Peoples unemployment is 9.6%, and unemployment for young people (15-24 year olds) is up 13,800 annually. The NEET (Not in Education, Employment or Training) rate was last this high, on a comparable basis, in 2012 according to Stats NZ.” Renney said.

“Wage increases are slowing, with nearly half (46%) of working people getting a pay rise less than CPI. With the minimum wage rising by only 1.5% in April, this is another trend likely to continue. With part-time work growing, but full-time work declining, maintaining incomes in households is going to be increasingly difficult.

“Right now, there is no plan for the economy. No plan for the labour market. The economy is in sharp recession. Unemployment is rising. It’s time for a plan for New Zealand. We are losing record numbers of people overseas, and without that these numbers would likely have been much worse,” said Renney.

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“Something is very wrong in our society and economy” – NZCTU Workforce Survey shows people fear for future

Source: Council of Trade Unions – CTU

Insecurity in work, housing, and health among working people has emerged as the key finding from the New Zealand Council of Trade Unions Te Kauae Kaimahi’s 2025 annual Mood of the Workforce survey.

NZCTU President Richard Wagstaff says the survey, which polled more than 1900 people, shows immense concern that the Government is taking Aotearoa New Zealand in the wrong direction.

“We’ve been running this survey since 2019, and I have never seen such a negative response. People are in fear for their jobs and their businesses, their ability to keep their homes, and for their health,” said Wagstaff.

“They also don’t trust this Government to make it better because they are feeling firsthand the damage that’s been done with austerity policies that are only benefiting an already privileged few.

“The message that the Government has no interest in helping working people, who are the majority of New Zealanders, is coming through strongly in people’s comments on the tax system, the health system, and their work.

“People are sharing stories of losing their jobs or struggling to cover the work of colleagues who have already lost their jobs. These are heartbreaking to hear. But so are the stories of families being broken up as people’s kids leave the country to find better job prospects, or of parents having to act as a safety net for their adult children. These children have been hit hardest by the recent downturns, and an unfair and unforgiving housing market.

“A consistent theme is an overwhelming sense that something is very wrong, both in our society and with the economy.

“We’ve seen that at a statistical level in things like the recent Curia polling which showed people feel we are on the wrong track as a nation, but the results from our workforce survey give a close up and troubling picture of what that means in people’s lives.

“My great concern is that rather than admit that their policy direction is hurting people and damaging our economy, the Government is doubling down on it in their recent announcements.

“Whether that’s because of the Government’s arrogance or because they live in a bubble of privilege and don’t understand the damage they are doing is immaterial. People want a change of direction and to see things done a different and better way.

“Any politician or political party that ignores working people and their communities does so at their peril,” said Wagstaff.

View the results

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Luxon’s speech an exercise in smoke and mirrors

Source: Council of Trade Unions – CTU

The Prime Minister’s State of the Nation speech is an exercise in smoke and mirrors which deflects from the reality that he has overseen the worst economic growth in 30 years, said NZCTU Te Kauae Kaimahi President Richard Wagstaff.

“Luxon wants to “go for growth” but since he and Nicola Willis took power, unemployment has skyrocketed, growth has plummeted, and record numbers of New Zealanders are heading overseas. They have overseen the worst record on economic growth since 1991,” said Wagstaff.
 
“It beggars’ belief to hear the Prime Minister talk up the need for investment in science and innovation, when over the last year his Government has cut research funding and axed more than 500 jobs in the public science sector. The new policies to merge Crown Research Institutes (CRIs) and “commercialise science” miss the point. The focus should be on increasing investment in science and properly funding CRIs and universities, not mergers, cuts, and slogans.
 
“Aotearoa New Zealand is only spending about half the OECD average on science and research and development (R&D). That needs to change, and yet we heard nothing today about increased funding for science and research.

“We are also alarmed at the Prime Minister’s signal that workplace health and safety is a cost rather than an investment in workers’ lives. Safe workplaces are prdocutive workplaces.
 
“The Prime Minister and Minister of Finance continue to demonstrate how out of touch they are with working people by failing to recognise the economic hardship that people are living through as a result of their heartless choices and their lack of an economic plan or industrial strategy.
 
“Working people in New Zealand are now experiencing extraordinary economic insecurity, from job losses and stagnating wages to housing insecurity and rising costs.
 
“At a time when people were crying out for economic investment and support through the cost-of-living crisis, the Government slashed and burned public services and infrastructure while making decisions that have increased costs, such as bringing back prescription fees, increasing public transport fees, indexing benefit increases to inflation rather than wage growth, and cutting the minimum wage in real terms for two consecutive years.
  
“The Government likes to talk about the need to tackle our poor productivity performance, and the need for a longer-term plan to arrest our decline, but their actions continue to take us in the opposite direction. We need an industry plan to create good high wage jobs in highly productive and low emissions industries.
 
“For too long politicians have failed to tackle the generational crises that confront us, from inequality to climate change, and the future of work. It’s past time that politicians recognise the need to do things differently and build an economy that works for everyone,” said Wagstaff.

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Working people will pay for static inflation

Source: Council of Trade Unions – CTU

Data released by Statistics New Zealand today showed that inflation remains unchanged at 2.2%, defying expectations of further declines, said NZCTU Te Kauae Kaimahi Economist Craig Renney.

“While inflation holding steady might sound like good news, the reality is that prices for the basics—like rent, energy, and insurance—are still rising. The removal of the Auckland Regional Fuel Tax helped ease petrol prices, but without that reduction, inflation could have gone even higher. Workers and families are still struggling with rising costs for everyday essentials,” said Renney.

“The recent drops in inflation have been helped by falls in the price of vehicle fuels – with the average price of 91 falling from $2.81 to $2.55. If we remove petrol from the CPI the overall inflation rose by 2.7%.

“Tradable inflation overall also turned, falling by less than last quarter. Tradeable inflation tends to lead the overall direction of inflation in the future”. 

 “Many working people aren’t feeling the benefits of lower inflation. Rental inflation was nearly twice general inflation at 4.2%, showing that landlord tax breaks aren’t leading to lower rental prices. 

 “While stable overall inflation is welcome, the prices for things that people can’t avoid are rising more quickly. Insurance prices rose by 11.2% annually. Local authority rates rose 12%. Household energy costs are rising by 5%. These are all eating into already tight household budgets.

 “Last month the government agreed to increase the minimum wage by 1.5% in April. Inflation is currently at 2.2% and seems to have reached its floor. For workers on the minimum wage this looks increasingly like another year in which they will take real terms pay cuts. The Government needs to respond to this data by lifting the minimum wage in real terms,” said Renney.

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NZCTU make submission in opposition to Treaty Principles Bill

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi have submitted against the controversial Treaty Principles Bill, slamming the Bill as a breach of Te Tiriti o Waitangi and an attack on tino rangatiratanga and the collective rights of Tangata Whenua.

“This Bill seeks to legislate for Te Tiriti o Waitangi principles that are not derived from the text, the intention of the parties or, the historical context in which the document was signed. It represents a direct attack on the legitimate meaning of Te Tiriti to undermine Māori rights,” said Acting NZCTU President Rachel Mackintosh.

“Our recommendation is that the Government completely abandon this Bill and make no further attempts to distort the genuine principles of Te Tiriti or to remove references to the Te Tiriti principles in legislation.

“From restricting the rights of unions to organise to attacking tino rangatiratanga, this Government has proven itself an enemy of collective rights and collective power.

“Just as workers are weakened when their collective strength is undermined, Māori face the risk of losing power and authority if their collective rights are stripped from them.

“This Bill has no place in a modern democracy. It represents backward colonial baggage that should be consigned to the dustbin of history.

“The NZCTU carries a long tradition of representing Māori workers and standing in solidarity with Māori. The struggle for workers’ rights and the struggle for tino rangatiratanga are inextricably linked. Both struggles stand in solidarity against the greed and ignorance of the powerful and claim for ordinary people what they justly deserve.

“The union movement represents more than 60,000 Māori workers, and we stand in solidarity with the tino rangatiratanga movement in the face of yet another attempt to undermine the collective strength of Tangata Whenua and working people,” said Mackintosh.

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GDP Figures No Christmas Present for New Zealand

Source: Council of Trade Unions – CTU

Data released by Statistics New Zealand today showed a significant slowdown in the economy over the past six months, with GDP falling by 1% in September, and 1.1% in June said CTU Economist Craig Renney.

“The data shows that the size of the economy in GDP terms is now smaller than at any time since June 2022. GDP per capita has now fallen for 8 consecutive quarters, with the fall accelerating in the past six months. The economic situation is even worse than we thought, and that means even more hardship for workers heading into Christmas,” said Renney.

“With unemployment being a lagging indicator, the pain for working people in terms of unemployment is likely to be worse than previously thought.

“Revisions to data have increased the strength of the economy in the past, which have removed the recessions recorded over the past few years. We now know that the economy was growing consistently during 2023 on an annual basis, and we have only had one recession since COVID – which is now.

“The data demonstrated that GDP fell across 11 of 16 sectors last quarter. Output fell across both goods producing sectors and service industries. Business Investment fell -2.5% last quarter, with large falls in plant, machinery & equipment. Falling business investment is likely to mean lower productivity growth in the future, and fewer jobs.

“This isn’t a wake-up call for the government, it’s an alarm. Excluding COVID lockdowns, this is the fastest fall in production GDP over six months since June 1991. Government spending has fallen at the fastest rate since 1992 and the budgets of Ruth Richardson. The economy isn’t back on track, its derailed.

“We have just had a budget where the Government’s fiscal plans have clearly been shown to have failed. Unemployment is rising – and will likely rise more.

“The economy is now showing the impact of the Government’s policies – it’s been in office for a year. It’s clear that it’s time for a new approach, or we will all suffer the devastating economic consequences,” said Renney.

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NZCTU: Minister needs to listen to the evidence on engineered stone ban

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi Acting Secretary Erin Polaczuk is welcoming the announcement from Minister of Workplace Relations and Safety Brooke van Velden that she is opening consultation on engineered stone and is calling on her to listen to the evidence and implement a total ban of the product.

“We need to follow Australia’s example and implement a total ban of engineered stone, a dangerous product that is killing workers,” said Polaczuk.

“Exposure to the silica dust from cutting engineered stone can cause the fatal lung disease silicosis. Workers exposed to this material are developing symptoms at an accelerated rate, and at a much younger age than other occupational respiratory diseases.

“The Minister has said that she’s consulting on the full spectrum of regulatory options but is also saying from the outset that she doesn’t think a ban is the way to go. She needs to keep an open mind and listen to the experts, and not rule out options from the outset.

“In July we joined with 18 other unions, public health experts and health and safety specialists and released an open letter calling on the Minister to listen to the overwhelming evidence and implement a ban. This is now her chance to do so.

“There are safe alternatives to engineered stone – it is a fashion item, not an essential product, and so we lose nothing from taking it out of the market.

“The Minister has the power to eliminate this hazard and save workers’ lives. This is her opportunity to do the right thing,” said Polaczuk.

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HYEFU and BPS data shows New Zealand is way off track

Source: Council of Trade Unions – CTU

New data released by the Treasury shows that the economic policies of this Government have made things worse in the year since they took office, said NZCTU Economist Craig Renney.

“Our fiscal indicators are all heading in the wrong direction – with higher levels of debt, a higher deficit, and deeper cuts programmed in the future. Our economic indicators are all heading in the wrong direction, with lower economic growth and higher unemployment. The Government’s policies are hurting working people, and they’re not working for Aotearoa,” said Renney.

 “The data showed that the economy is growing more slowly than forecast just six months ago. Next year GDP growth was forecast to 1.7% at Budget, now its 0.5%.  GDP is $20bn lower by 2028. Unemployment is higher in every year of the forecast – with 20,000 more people on jobseekers support by 2026. OBEGAL absent the new tricks of accounting – never comes back into surplus across the forecast period. Net Core Crown Debt increases across the forecast period by $58bn.  

“The Budget Policy Statement signals that we are in for more cuts in the next few budgets. There is only $700m available at the next Budget to pay for everything outside health. That bakes in likely cuts to public investment and to the public sector workforce every year for the next few years. All to pay for the tax cuts that have now passed. The folly of that decision is now being uncovered.

 “These books paint a picture of a government without a plan. The only solution the Minister of Finance is planning is to double down on an already failing strategy. These are the Government’s books; responsibility shouldn’t be passed on. Working people and communities across Aotearoa will suffer if we don’t change track,” said Renney.

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NZCTU put Brooke van Velden on notice over WorkSafe cuts

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi have sent an open letter to Minister for Workplace Relations and Safety Brooke van Velden, following another round of devastating job cuts at WorkSafe.

“Aotearoa New Zealand’s record on workplace health and safety is costing the lives of so many workers, and instead of working to turn that record around, we have a Minister who is making decisions that will cost even more lives,” said NZCTU Acting President Rachel Mackintosh.

“WorkSafe already lost 15% of its staff in the last 12 months – 113 roles. Now the organisation will lose another 54 roles, which will critically undermine its core functions as our workplace health and safety regulator.

“Alongside these job cuts, WorkSafe have announced they are disestablishing the health team, which will undoubtedly lead to an increase in health-related harm and deaths in workplaces across the country.

“Dozens of New Zealand workers die each year as a result of workplace injuries. In addition, estimates suggest that 750-900 workers die each year from work-related occupational diseases such as asbestosis and cancers.

“This hollowing out of our health and safety regulator is deliberate. WorkSafe is being set up to fail. The Minister and her Government have an aversion to regulation, yet good regulation is essential to good health and safety and saving workers lives.

“Workers will need to issue the Minister with an improvement notice if she doesn’t start taking health and safety seriously and use her role to bring down our abysmal injury and death rates.

“This Minister is overseeing an all-out assault on working people – while gutting WorkSafe, she is leaving workers in the ditch on Holidays Act reform, undermining personal grievance claims, and threatening to weaken health and safety law. This is on top of scrapping fair pay agreements, bringing back 90-day fire at will agreements and redrafting employment law on behalf of the multinational corporation, Uber.

“Working people are sick and tired of this Minister and her extreme anti-worker agenda. It’s well past time she learnt the requirements of her role and put the health and wellbeing of workers above the interests of big business.

“We are putting Brooke van Velden on notice and saying enough is enough,” said Mackintosh.

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Minimum wage ‘increase’ is an effective cut

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi are saying that the Government should do the right thing and deliver minimum wage increases that don’t see workers fall further behind, in response to today’s announcement that the minimum wage will only be increased by 1.5%, well short of forecast inflation.

“With inflation forecast at 2% by the Reserve Bank, the new minimum wage rate is an effective cut in real terms and will leave workers worse off. This is the second year in a row where this Government has made the decision to cut the Minimum wage in real terms,” said NZCTU Acting President Rachel Mackintosh.

“National promised to support New Zealanders through the cost-of-living crisis, and yet this decision will mean that the lowest income workers fall even further behind. Minimum wage Workers are now $1,206 a year worse off as a consequence of these real term wage cuts”.

“Government has a responsibility to ensure that all workers have enough to afford rent, pay the bills, put good food on the table, and buy their kids what they need. How are workers meant to keep up with rising food and rent costs when the Government is cutting their wages in real terms?

“At a time when inflation is coming down, this was an opportunity for the Government to give workers a break and ensure they get real terms pay increases.

“All New Zealand workers have the right to a liveable income to support their families – they deserve to be paid a Living Wage,” said Mackintosh.