Govt spending decision signals crisis and cuts

Source: Council of Trade Unions – CTU

The decision to nearly halve the amount of new investment being made in the next Budget signals that this Government doesn’t care about the users of public services, said NZCTU Te Kauae Kaimahi Economist Craig Renney.

“$1.3bn in operating allowance isn’t enough to pay for cost pressures in health alone ($1.55bn). There is no money for cost pressures in education and other public services, or proposed defence spending. This is a Budget that will be built on cuts to essential services,” said Renney.

“The fact that this announcement has come only three weeks away from Budget suggests that there is no agreement around the cabinet table about what government should be doing.

“We now know that we are looking at a Budget where departments will be asked to make further rounds of deep cuts – just after cuts at Budget 2024.

“The Minister of Finance is blaming borrowing for the need to make cuts. At the last Budget the government borrowed $12bn to pay for tax giveaways, including to landlords and tobacco companies.

“This decision to cut investment is a choice. When child poverty rises, as it currently is, it’s a choice to not increase support. When we can’t support people losing their job, that’s a choice. This Government’s choices are now very clear.

“We implore the Government to rethink this decision. It doesn’t help solve the public investment gap that already exists. It doesn’t help tackle unmet need in health and education. It’s time for a better approach, and to rebuild our public services,” said Renney.

Unions launch campaign to ban engineered stone

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions Te Kauae Kaimahi has today launched a campaign to ban the import, supply, and use of engineered stone in Aotearoa New Zealand.

“We are urging the Government to do the right thing and save workers’ lives by banning engineered stone, an extremely dangerous product that causes the fatal lung disease silicosis”, said NZCTU President Richard Wagstaff.

“Engineered stone is the asbestos of our times. It is not an essential product and there are many safe alternatives already in the market.

“Silicosis is a debilitating disease that cannot be cured. The evidence is clear that the only solution is to stop workers from being required to process engineered stone, which exposes them to the dangerous silica dust.

“Brooke van Velden has the power to save workers’ lives. All she needs to do is follow Australia’s example and implement a total ban.

“There is broad support for this campaign. Last year the CTU joined with 18 other organisations, including public health experts and health and safety specialists, and called on the Minister to act.

“Aotearoa has a terrible record when it comes to work-associated deaths. The Government has the opportunity to help turn that around by banning engineered stone. It’s time they stepped up on behalf of Kiwi workers,” said Wagstaff.

The NZCTU have today launched a public petition calling on the Minister to implement a full ban on the import, supply, and use of engineered stone.

Govt vocational education reforms will cause massive disruption

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions Te Kauae Kaimahi is warning that the Government’s decision to adopt a new model for the vocational education and training sector will lead to massive disruptions and instability in an already fatigued sector.

“The NZCTU remains fundamentally opposed to these reforms, which will create further disruption across the sector and come off the back of a period of disruption and change in the sector over the past five years,” said NZCTU Acting President Rachel Mackintosh.

“We are concerned by the impacts that another several years of change processes will have on the sector, learners, and industries.

“Our major concern regarding the model that the Government is adopting is the risk of the creation of new private agencies competing for public funding within the sector; this model has not served New Zealand well in the past.

“Profit motives drive instability in education, and it is not a good use of resources to have multiple agencies competing for funding as they must focus attention on securing funding at the expense of focusing on delivery for learners.

“The whole process for these reforms has been flawed. There is no reason why the consultation needed to have such a narrow scope, excluding critical stakeholders, and key subject matter experts.

“The Minister’s insistence on pushing ahead with these poorly thought through reforms is likely to create several more years of instability in the sector, and more uncertainty for learners, industries, and the vocational education and training workforce,” said Mackintosh.

Inflation data confirms real terms minimum wage cut

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is concerned for low-income workers given new data released by Stats NZ that shows inflation was 2.5% for the year to March 2025, rising from 2.2% in December last year.

“The prices of things that people can’t avoid are rising – meaning inflation is rising faster for those on low incomes,” said NZCTU Economist Craig Renney.

“Inflation was driven by increases in rents (up 3.7%), rates (up 12%), household energy (up 7.2%) and insurances (up 8%). Grocery prices were also higher, rising 4.3%.

“Earlier this year, the minimum wage rose by 1.5% – a full 1% less than actual inflation. This is the second year the Government has increased the minimum wage by less than inflation, which means that a full-time minimum wage worker is now cumulatively $2,438 worse off in real terms. Minimum wage workers are missing out on $28.36 a week because of the Government’s decisions.

“The Government is considering removing the Living Wage guarantee for government contractors who are caterers, cleaners, and security guards. This data shows why that protection is so important – working people can’t rely on this Government to protect them through the Minimum Wage.

“With 46% of workers receiving a pay rise less than inflation last year, it also shows that many working people are still doing it tough. Unemployment is still rising, with tens of thousands of more people on Jobseekers Support. It is clearly not workers who are benefitting from the very little economic growth is being delivered.

“This data is another piece of evidence about who is winning and losing in the economy. The poorest working people are facing higher costs they can’t avoid – but with less money to pay.

“Workers need a change in direction and a government that will actively address low pay, unemployment, and poverty – it’s time for a different approach,” said Renney.

NZCTU announce transformative policy vision for Aotearoa

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions Te Kauae Kaimahi has launched a new policy platform, Aotearoa Reimagined, which has been developed by engaging workers, community leaders and policy experts over the past year.

“Today we are announcing a transformative policy vision that reimagines our society and economy to ensure that Aotearoa New Zealand works for the many, not just the few. We challenge political parties to make a strong commitment to working people by adopting these policies in the lead up to the next general election,” said NZCTU President Richard Wagstaff.

“Our country is heading in the wrong direction. We have a broken economy, rising inequality and poverty, soaring unemployment, and stagnating wages. The rich keep getting richer at the expense of ordinary people. We need to do things differently. It’s time for bold change.

“We’ve spent the last year listening to workers who have told us that they are angry at a system that doesn’t meet their needs or aspirations. They fear their children are facing a future of increasing hardship.

“Everyone deserves security, dignity, and to have enough to thrive. Changing the country’s trajectory is possible—we just need to make different choices. We have listened to working people and created a plan to build a society that works for everyone. 

“Our plan would ensure everyone can have good, well-paid jobs underpinned by strong workers’ rights.

“It will deliver world-leading public health and education, a cradle-to-grave care and support system, modern infrastructure, warm dry, affordable homes, clean and publicly owned energy, and low-cost transport.

“The plan would ensure that Aotearoa meets its climate obligations and guarantees a just transition for the workers and communities who will bear the brunt of the climate crisis and technological change.

“We are also calling on politicians to reject the politics of division and honour Te Tiriti o Waitangi by implementing it in law and in our constitutional frameworks.

“We can fund the transformative change we desperately need by rebalancing the tax system, taxing capital gains and ensuring that the wealthy pay their fair share.

“The union movement is challenging political parties to make this vision a reality and create an Aotearoa that works for the many, not just the few. It’s time for a new approach,” said Wagstaff.

Read the full policy platform here.

Brooke van Velden ramps up her war on working people

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is dismayed that Minister for Workplace Relations and Safety Brooke van Velden has launched another attack on workers’ rights by removing employment protections for workers when they start in a new role.

These protections include being provided information about the role and function of unions and that, for the first 30 days, new employees must be employed on the same (or better) terms with any onsite collective agreement while they decide whether to join a union.

“In yet another announcement from Brooke van Velden, workers’ rights are being eroded and unions undermined,” said NZCTU President Richard Wagstaff.

“Currently workers in a new role have protection for 30 days, to weigh their options and settle in without being disadvantaged. The Minister clearly wants to disrupt this period and encourage employers to create division among workers – between those who have a union agreement and those who don’t.

“Make no mistake, this is a deliberate attempt to undermine the role of unions in workplaces and prevent working people from securing good pay and conditions when they take on a job in a new workplace.

“When workers start a new job, they are in a vulnerable position and can’t be expected to assert their rights in terms of trade union coverage.

“The Minister has no experience of unions or collective bargaining, and she refuses to engage with unions to understand the issues. In less than two years in the role, she already has the worst record in the portfolio in decades.

“Workers are sick and tired of this Government and their continued disdain for ordinary people who work hard every day to keep this country running.

“Across the country workers are organising to stand together and fight back against this Government, which is actively hostile to their interests,” said Wagstaff. 

Health and Safety changes driven by ACT party ideology

Source: Council of Trade Unions – CTU

Health and Safety changes driven by ACT party ideology, not evidence said NZCTU Te Kauae Kaimahi President Richard Wagstaff.

Changes to health and safety legislation proposed by the Minister for Workplace Relations and Safety Brooke van Velden today comply with ACT party ideology, ignores the evidence, and will compound New Zealand’s dismal health and safety performance.

“It’s disappointing to see the Minister has ignored the widespread consensus on what New Zealand needs to do to improve its poor track record and instead has chosen to carve out small businesses from good health and safety practices,” Wagstaff said.

“Exempting small businesses from best practice health and safety makes no sense when we know that small business are riskier and need more support.

“The Government seems to think the biggest obstacle to our poor productivity and health and safety outcomes is too many road cones. It’s no wonder New Zealand can’t get ahead when our leaders in Government seem so out of touch, and have no credible responses to these challenges.

“Given the massive challenge we have as a country to improve our health and safety performance, it’s astounding the Minister would target the use of road cones and expect WorkSafe to focus its scarce time and energy on creating a hotline.

“The Minister has been quick to cut support for important issues like modern slavery, and sat on her hands on other important health and safety concerns, like banning engineered stone. It would seem that this Government is more concerned about road cones than either of these issues.

“What’s worse is that these changes are being justified on the basis of cutting red tape for economic growth. Good business know that proper health and safety is not a compliance cost.

“On average there is a workplace fatality every week, another 20 are killed from occupational disease, and thousands more are incapacitated by injuries. Nothing in these proposals signals an intent to improve these numbers,” said Wagstaff. 

Recession ends – Economic challenges remain

Source: Council of Trade Unions – CTU

Figures released by Statistics New Zealand today showed that the economy grew by 0.7% ending the very deep recession seen over the past year, said NZCTU Te Kauae Kaimahi Economist Craig Renney. “Even though GDP grew in the three months to December, our economy is still 1.1% smaller than it was in December 2023. Unemployment is up. Annually, business Investment is falling. We are still very far away from being back on track.”

“While any economic growth is welcome, this data further demonstrates the compelling need for an actual economic plan, not just a few slogans. One based upon growing both public and private investment. One based upon growing wages and household incomes. Many might celebrate this economic signal, but that one note needs to be put in context. Unemployment is up. Child Poverty is up. Homelessness appears to be rising. Our economic challenges are still very much here and worse than they were a year ago,” Renney said. 

“The GDP data now shows that our GDP per capita fell 2.2% from last year. GDP per capita is lower than it was in 2021. On quarterly basis, it increased by 0.4%, not enough to offset recent falls. Real household spending on durable goods, which is a key measure of consumer confidence, was 2.6% lower than December 2023.

“GDP data also shows that the wages rose far less quickly than profits – asking questions about where the benefits of this growth are going. Across the economy, the broad measure of wages (compensation of employees) rose 1.7% last year. The broad measure of profit (Gross operating surplus and gross mixed income) rose 5.7% – or 3.3 times the rate of wages. If there is a recovery, it’s not yet ending up in workers pockets,” said Renney.

Government must act decisively and ban engineered stone

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi have reiterated their call for Government to protect workers by banning engineered stone in a submission on MBIE’s silica dust consultation.

“If Brooke van Velden is genuine when she calls for an evidence-based approach to this issue, then she must support a full ban on engineered stone products,” said NZCTU President Richard Wagstaff.

“Processing engineered stone is extremely harmful to health. A ban will save lives.

“Engineered stone is not an essential building product and many safe alternatives exist. We should not be putting workers’ lives at risk for a trendy kitchen.

“The Government needs to act now. We cannot wait for more workers to be harmed, or killed before they realise decisive action is necessary,” said Wagstaff.

The NZCTU is also among those calling for stronger regulation of all work involving silica to protect workers from the deadly lung disease silicosis.

WorkSafe estimates that 80,000 workers are working in conditions where the workplace exposure standard for silica dust is regularly exceeded, showing the need for better protections against exposure.

“Workers need the certainty that their health is being protected at work. Stronger regulations will provide businesses with the clarity needed to ensure this is being provided,” said Wagstaff.

“We also add our voice to those calling for the establishment an occupational lung disease registry to support exposed workers with treatment and effective follow-up.”.
 

New procurement rules hurt low-income workers

Source: Council of Trade Unions – CTU

New draft government procurement guidelines will remove living wage protections for thousands of low-paid workers in Aotearoa New Zealand, said NZCTU Te Kauae Kaimahi President Richard Wagstaff.

“The Minister of Finance Nicola Willis has proposed a new rule saying that the Living Wage no longer needs to be paid in cleaning, catering, and security guard services that are procured by government. These workers now face the potential of significant pay cuts,” said Wagstaff.

“During a cost-of-living crisis, government should be lifting people’s wages and ensuring everyone has good jobs, but instead they are reducing the quality of life for thousands of New Zealand workers.

 “The Living Wage is an important protection for workers, and its level is set by independent experts who look at the real cost of living for families. Taking this protection away won’t lead to better contracts or better services, it will only lead to higher profits for companies and a more exploited workforce.

“Nicola Willis claims that this protection will be replaced by a new ‘economic benefit rule’. There is nothing in that rule about wages, terms and conditions, worker protection, or income security. For this government, economic benefit clearly doesn’t mean any benefit for workers or their families.

“This is about to trying to lift the profits of companies at the expense of working people. It’s the same logic that brought back 90-day trials, removed Fair Pay Agreements, reduced sick leave, and cut the minimum wage in real terms.

“The NZCTU condemns these changes, which will worsen the material living standards for thousands of workers,” said Wagstaff.