Category: Council Of Trade Unions

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Kinleith mill closure shows need for industrial strategy

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to deliver an economic and industrial strategy for regional manufacturing, rather than just expressing sympathy for job losses, following the announced closure of Kinleith mill in Tokoroa.

“The closure Kinleith mill in Tokoroa is not just devastating for the 230 workers and their families, it is another major blow to regional manufacturing in Aotearoa New Zealand,” said Wagstaff.

“Over the last several months we have seen significant job losses in the regional manufacturing sector, with worksites closing around the country.

“The Government’s failure to step in and protect these communities demonstrates their lack of concern for regional New Zealand and the care for workers and their whānau.

“This is not about crudely subsidising and giving handouts to particular companies, it’s about putting forward an economic and industrial strategy that supports industries and regions to protect and generate good jobs and create full employment for working people.

“What’s needed is a government that is willing to show leadership on economic development by working with industry and unions to deliver good work and high living standards for all.

“Workers also deserve active support when they lose their jobs, not just sympathy. That’s why for years we have been calling on successive governments to adopt a social insurance scheme that would protect workers through redundancy.

“We haven’t seen ministers lift a finger for any of the workers who lost their jobs in this sector, and yet they will support landlords and higher income earners with billions of dollars’ worth of tax cuts.

“Unless the Government responds to the pain that regional communities are experiencing with active industrial policy, we are going to continue to see the loss of more and more manufacturing jobs in this country,” said Wagstaff.

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Uniformed Defence Force should not be used as strike breakers

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is criticising the Defence Minister Judith Collins for deploying the military as strike breakers against their own people.

“In a modern liberal democracy, any deployment of the armed forces in employment relations is a drastic step, and should be avoided at all costs,” said Wagstaff.

“The first thing a responsible employer and Minister should do is make a reasonable offer in good faith to settle the collective agreement. That has not occurred and right now seems to be the last thing they want to do.

“To so easily bring out the military against their own people – the civilian defence force – is reckless and will do nothing to build organisational cohesion and commitment.

“NZDF civilian staff represented by their union, the PSA, don’t expect to come under attack just because they want to settle their collective agreement and have taken lawful industrial action in support of their modest claims.

“But NZDF don’t appear to want to settle, if they did, they would make a reasonable offer – not the current offer of 0% which is not reasonable.

“It’s alarming that the Minster opted to take this course of action, instead of urging the NZDF to turn up at the bargaining table with real intent to settle.

“This Government is at war with an imaginary enemy they call the ‘back office’, when they should understand that any capable military force, like other industries, depends on the support of hard-working civilians who provide the foundation for operational success.

“The real enemy of the defence force and public services in general is not the back office, it’s under investment, low morale and poor leadership from this Government.

“The Minister should be supporting those who job it is to support the military, by pressing NZDF into getting an agreement with the PSA,” said Wagstaff.

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Government must vote down ACT Members Bill that would undermine workers’ rights

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to vote down an ACT Party Members Bill that would undermine workers’ rights by making it easier for employers to fire workers.

Last week ACT MP Laura Trask’s Employment Relations (Termination of Employment by Agreement) Amendment Bill was drawn from the ballot.

“This Bill would be a major backwards step. It is an attack on the rights of working people and makes it less likely that workers will be treated with fairness and respect in their relationships with employers,” said Wagstaff.

“Brooke van Velden has said that she supports the Bill ‘in her capacity as a fellow ACT MP’. What we want to know, is what her official position as a government minister?

“What this Bill does is make it easier for employers to exploit power imbalances in the workplace and constructively dismiss workers, while making it harder for workers to hold employers responsible. Constructive dismissal is an objectionable practice.

“This approach would only make it easier for employers to lean on workers and push them out.

“There is already a process for employers to engage in mediation with staff. This Bill is not needed to ensure that without prejudice conversations can occur. These occur frequently and play a part in resolving practically all employment issues.

“All workers have the right to good work and should be able to expect to be treated with fairness in the workplace.

“This change would appeal to the worst employers who don’t have any respect for proper process or the rights of employees. We are calling on the Government to clarify their position and vote down this unnecessary and unjust Bill,” said Wagstaff.

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Unemployment rising shows the need for a plan

Source: Council of Trade Unions – CTU

New labour market data released by Statistics New Zealand today shows a weak labour market and the need for a plan to deliver positive change, said NZCTU Economist Craig Renney.

“Unemployment rose to 4.8% – which is the highest rate it has been since COVID-19.  There are 29,000 more people unemployed since this government took office. Yet there is no plan to help workers – that needs to change,” said Renney.

“It’s clear that some communities are increasingly being left behind. Unemployment for young people is now a real concern, with 20% of 15–19-year-olds unemployed and 8.4% of all 20–24-year-olds unemployed. Māori unemployment is 9.2% and Pacific Peoples unemployment is 9.9%. Unemployment in in Auckland is now 5.2%.

“Wages are also reflecting the softer labour market, with 37% of all workers seeing no pay rise, and 50% of workers seeing an annual pay rise less than the 3.8% increase in household costs reported yesterday. With the minimum wage rising by less than inflation this year, its low-income workers who are bearing the brunt of this Government’s policies.

“This was the first time in 37 quarters that the number of people employed in New Zealand fell. A million fewer hours were worked this year. 367,000 people want more work but can’t currently get it. The numbers unemployed for more than 6 months is at its highest level since 1992.

“The headline rate of unemployment didn’t hit 5%, but the underlying data shows that the labour market is as weak as people fear. There have been significant layoffs at sites across New Zealand which won’t have registered yet in this data.

“The Government’s only plan appears to be welfare sanctions which will only increase hardship for unemployed workers. Workers deserve to know what this government is going to do ensure everyone has access to good, sustainable work,” said Renney.

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Government science cuts take New Zealand even further backward

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is deeply concerned about the future of investment in science, following the latest announcement of another 60 jobs cuts at Environmental Science and Research (ESR). The Government has now axed more than 500 jobs in the public science sector.

“The Government doesn’t seem to believe in the value of science and isn’t interested in making the investment required. Instead, it is taking us backwards and slashing funding in favour of tax cuts for landlords and tobacco companies,” said Wagstaff.
 
“We should be increasing investment in science and properly funding Crown Research Institutes (CRIs) and universities. New Zealand is only spending about half the OECD average on science and research and development (R&D) already.
 
“It’s well known that countries that invest a higher proportion of GDP directly in R&D (both private and public) see greater returns economically, socially and environmentally.
 
“The decision to make these cuts has been made even though the report of the Science System Advisory Group report is due out shortly, which demonstrates the lack of commitment there is to listen to the evidence on the importance of science investment.
 
‘The Government talks 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.
 
“It’s time we had a serious conversation about science, and we urgently need a government that is prepared to have that conversation and not just bury it’s head in the sand,” said Wagstaff.
 
Note:
The CTU and several affiliated unions are member organisations of the Save Science Coalition. The Save Science Coalition released a report in July this year about the cuts to science funding and staffing so far, which can be found here. The group is now working on an update to this report, to account for the ongoing cuts we are seeing at GNS, ESR and elsewhere. The report will contain more detailed numbers and information and is expected to be released before the end of the year.

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Monthly Employment Data shows weakness in economy

Source: Council of Trade Unions – CTU

Monthly employment data released today by Statistics New Zealand showed our continuing labour market weakness, and particularly challenging conditions for young working people, said NZCTU Te Kauae Kaimahi Economist Craig Renney.

“There are 21,000 fewer filled jobs than this time last year, and the fall has been led by those starting out in work. There are 25,000 fewer jobs being filled by people aged 15-24 than a year ago. This data shows that right now, it’s a hard place to find work for young people.”

“On an annual basis, weakness in the labour market was particularly evident in Auckland (down 10,500 filled jobs) and Wellington (down 3,000). The number of filled jobs fell 2% in Southland, 1.7% in Taranaki, and 1.1% in Manawatū-Whanganui. This data won’t yet reflect the significant layoffs in places like the Smithfields Timaru site or Winstone Pulp International in Ruapehu.”

“Annually, construction seems to be the most adversely affected sector, with a loss of more than 10,000 filled jobs. Accommodation and food services have 7,000 fewer filled jobs, and manufacturing sees nearly 6,000 fewer filled jobs. Administration and support services sees 7,000 fewer filled jobs. Private sector employers seem to be losing staff quickly in this labour market.”

Renney said, “The pressure is also applying to earnings. Annually, accrued earnings rose 0.8%, the slowest September rate since this series began in 2019. Here, unemployment is forecast to rise further to 5.5% in the near future, while job growth in the US and the UK is ahead of forecasts, and Australia put on an additional 47,500 jobs last month.”  

“This data shows that the labour market needs a plan, one that focusses on helping people into good, long-term work. Yet the government is doing the opposite – making work more insecure, taking away essential investment, and it has no employment plan, except more sanctions. There are things we could be doing to manage the pain being felt for working people right now. But the government is choosing not to deliver them.”

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NZCTU alarmed at further cuts to WorkSafe

Source: Council of Trade Unions – CTU

WorkSafe’s announcement that it is planning even further restructuring and cuts just months after losing 15% of its staff has alarmed the NZCTU Te Kauae Kaimahi.

“Our health and safety regulator is a critical component of our health and safety system, and we know it already has an undercooked capacity to deliver on its role,” said NZCTU President Richard Wagstaff.

“Taking more people out to save money to pay for tax cuts is short-term thinking that will have long term consequences for the health and safety of New Zealand workers.

“WorkSafe is now set up to fail. They have stripped down the organisation to its bare bones, throwing whatever they can to the so called ‘front line’ inspectorate, knowing full well that without a well-resourced support function, the inspectorate will be less effective. 

“Everyone in New Zealand has the right to expect a safe workplace and to be able to come home safely to their family at the end of the day. Sadly, these cuts will mean more workers will be at-risk.

“This announcement is all smoke and mirrors. The fact remains that WorkSafe, remains well short of the numbers of inspectors the agency once had when it was created in 2013. At that time, we had 8.4 inspectors per 100 thousand workers (similar to Australia) and now it has been run down to 6.3 – a level we last saw when the Pike River disaster occurred.

“Compounding this problem is the lack of support, and the expectation in this latest proposal for inspectors to pick up more administrative and other functions on top of their day job. This makes a mockery of the claims to move resources to the front line.

“These proposals signal a further shift away from protecting workers from risks to their health and safety and towards a focus to responding to harm. WorkSafe has had to shrink away from its proper role to fit the budget.

“Our health and safety system relies on an effective regulator. This latest announcement demonstrates yet again that health and safety is just not a priority for the Government,” said Wagstaff.

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Workers demonstrate strength of union power

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi is celebrating a strong turnout of workers across the country who stood together in opposition to the Government’s anti-worker agenda, with more than 10,000 working people attending hui from Whangārei to Invercargill.

“Today workers from a wide range of sectors and industries came together and demonstrated the strength of union power. Workers told the Government that they are sick and tired of the total disregard for their livelihoods,” said NZCTU President Richard Wagstaff.
 
“It is galling to hear Brooke van Velden try and claim today the coalition is great for working people, when she is overseeing a series of policies that erode hard fought for worker’s rights, and refuses to even meet with unions.
 
“Actions speak louder than words. That’s why we know that this coalition government is in the pockets of the rich and corporate interests and doesn’t care about working people.
 
“We are proud of our movement for uniting together and sending this Government a strong message that will not back down and let them get away with their anti-worker and anti-Te Tiriti agenda.
 
“When unions and working people unite and use our collective strength, we bring people together and transform society for the better. We have a proud history of creating change, even in the toughest circumstances.
 
“We will continue to fight for good work, livable incomes, well-funded public services, health and safety at work, and the rights of kaimahi Māori,” said Wagstaff.

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Government must support workers following Smithfield closure

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to show leadership following the announced closure of the Smithfield meat works, and the continued loss of regional manufacturing jobs, by putting in place policies to support workers with retraining and income insurance.

“The loss of 600 jobs will be devastating for Timaru and the communities of South Canterbury, especially during a cost-of-living crisis and an economic downturn,” said Wagstaff.

“It is unacceptable that there has been absolutely no help for the affected workers even though the Government has known since last month that this was likely to happen. We have already seen this lack of support in other situations, such as Winstone pulp and paper.

“The trend we are seeing in terms of the loss of manufacturing jobs in regional communities is going to have a long-term negative impact on regional economic development and on the health and wellbeing of whānau and communities.

“Every forecast tells us that unemployment is going to rise, but nothing is being done at the government level to address it. What we are seeing is a total failure of leadership.

“The Government is happy to underwrite private building construction but will do nothing to underwrite workers incomes.

“We need to learn the lessons of the past and not throw workers on the scrap heap when the manufacturing sector is under pressure. Government has a responsibility to support workers with retraining and pathways into employment.

“It is also becoming clearer by the day just how foolish it was to scrap plans for an income insurance scheme that would have helped tide workers over until they found new work,” said Wagstaff.

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Falling Inflation Reflects a Falling Economy

Source: Council of Trade Unions – CTU

Data released by Stats NZ today showed inflation slowed to an annual rate of 2.2%, reflecting lower petrol prices and a weaker economy, said NZCTU Economist Craig Renney.

“The data shows that petrol prices fell 8% annually, and vegetable prices fell 18% annually. These reflect both softer global demand and a return to normal harvests after Cyclone Gabrielle. Prices for discretionary spending items such as furniture, electronics, or second-hand vehicles fell. This suggests weak demand and low consumer confidence, which is exactly what you would expect when unemployment is rising,” said Renney.
 
“Inflation and rising costs that can’t be avoided by households kept rising much faster than the headline rate. Electricity costs are up 7.4% a year. Rates bills rose 12% last year. Pharmaceutical products rose 17% with the reintroduction of prescription fees. Housing insurance was up 20% from last year.

“Rents were the biggest contributor to annual inflation, up 4.5%. It’s clear that the landlord tax cuts aren’t working to reduce rents. Low-income households, struggling after real terms cuts to the minimum wage this year, will still be feeling the pinch of these increases.
 
“One of the biggest drivers of the fall in inflation was the reduction in early childhood costs associated with the new family boost payment. Without that change quarterly inflation would have risen from 0.6% in September to 0.9%. Yet we know that more than half of all eligible households aren’t claiming that support – meaning that fall is unlikely to be translating into families’ pockets for many. Petrol pricing was supported by the one-off removal of the Auckland Fuel Tax, and with rising oil prices globally that fall is unlikely to be sustained.
 
“Inflation is falling right now, but low-income workers might not be feeling the benefit as inflation they can’t escape keeps rising. Lower inflation is good news if it doesn’t come at a cost of much higher unemployment, which every forecast tells us will be happening.

“With inflation now being back in the target band, the Government has no reason to not invest in making sure that unemployment doesn’t happen. Anything else is a choice,” said Renney.