Category: Council Of Trade Unions

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Trade Deal is no deal for Workers

Source: Council of Trade Unions – CTU

“Today’s announcement of a possible trade deal with the United Arab Emirates is not a cause for celebration”, says NZCTU Te Kauae Kaimahi President Richard Wagstaff. “There is no evidence of a deal with no enforceable rights for workers, protections against forced labour or modern slavery. Nothing has been noted abut enhancing the rights of women in the UAE.”

“We don’t currently know the real value of the deal. No National Impact Analysis or economic analysis has been made public. The International Trade Union Confederation states the UAE has one of the worst records for absolute denial of fundamental workers’ rights. No Independent Trade Unions are allowed under UAE law, nor is there any right to strike. One thing we do know is that this deal does nothing to help tackle climate change.”

“We will be working with the Government, parliament, and allies to highlight the problems that this trade deal will create. Migrant workers in the UAE make up 88 percent of the overall workforce, yet they have little or no protections at work. This agreement does nothing to protect them. We should send this agreement back so that a properly enforceable trade deal can be signed,” said Wagstaff.

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Government’s desperate decree to stop public servants working from home won’t work

Source: Council of Trade Unions – CTU

“The Minister of Public Service Nicola Willis is expecting public servants to stop working from home to help bolster the flagging local economy is micromanaging gone mad and counterproductive.” NZCTU Te Kauae Kaimahi President Richard Wagstaff said.

“This Government has already tried to control staffing ratios in terms of ‘front line’ and ‘back office, and now it is trying to control where people should work.”

“Minister Willis should concentrate on the big picture issues confronting Aotearoa New Zealand, instead of trying to manage the day-to-day operations of the public service.”

“Though flexible hours and working from home options vary across organisations, it’s understood that people are more productive and happier with flexible arrangements. In a cost-of-living crisis it also reduces the financial and environmental impact of transport and parking. This is an operational matter, one the minister shouldn’t be involved in.” Wagstaff said.

“Working from home practices have benefited from new technology, making it easier to connect remotely. The advent of COVID speed up the adoption of these tools and practices, demonstrating value to employers and employees alike.”

“Employers offering a hybrid model of working from home for part of the week has become very attractive for some workplaces, both in terms of convenience and productivity.”

“It’s crucial that the public service offers good work that attracts and retains the workers we need. This decision will just make that goal much harder in an already difficult environment.”

“Despite the Government doing its best to portray itself as modern, innovative thinkers, this decree demonstrates that in reality they don’t understand the value of a modern, positive, high-trust workplace culture. Micromanaging and stopping staff from working some of their time at home is all about an old-fashioned command and control mentality.”

“The Minister of Finance is fooling herself if she thinks forcing people to stop working from home will correct the damage done to the economy by the massive job cuts.” Wagstaff said.

“Public servants only have so much money to spend. Now they will have to spend more on public transport and less on their local communities. It is a zero-sum game,” said Wagstaff. 

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GDP numbers show economic worries are real and need a solution

Source: Council of Trade Unions – CTU

Data released by Stats NZ today showed that the size of the economy fell -0.2% in the June Quarter. CTU Economist Craig Renney said “GDP in June was smaller than June 2023 – meaning no real growth in the economy for at least a year. GDP per capita has been falling since September 2022, with a steeper fall than that found during the Great Financial Crisis.”

“The fact that we are back again in economic decline should be of real concern to those in charge of the economy, and should cause a rethink. Unemployment is rising quickly. Activity in retail trade and wholesale trade has been in decline since 2022. Business investment is lower than this time last year. Building construction fell. Government investment is also falling, with spending being lower than this time last year. There is no driver of growth in the current data to lead the recovery.”
 
“With data as bad as this, there should be a plan to deliver growth. Every other country highlighted by Statistics New Zealand in its papers saw growth in June 2024. Australia, Canada, China, the European Union, Japan, UK and the US. None of these countries is proposing the kind of economic and fiscal approach currently being delivered in New Zealand. We are at risk of making the currently bad situation worse.”
 
“With jobs being lost across Aotearoa, and with falling GDP, this is the time to rethink what we are doing. Softer growth and lower interest rates will feed through to lower tax revenues, putting the governments books further at risk. Other countries are seeing growth, and we need to be building a more sustainable economy in the future. When you are in a hole you should generally stop digging. That calls for renewed investment in New Zealand – not less.”
 
“There are things the government could be doing to make sure that the economy returns to growth, and that the recovery benefits all New Zealanders. We have an energy crisis costing jobs rights now. There are building sites lying idle and workers heading overseas for work. There are stalled school rebuilding projects. Rebuilding Aotearoa now will help with the recovery and make our growth less inflationary when it returns. Its time to change economic track.”

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Government should intervene to protect local manufacturing jobs

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to intervene and protect local manufacturing, following the announced closure of the pulp and paper mill at Penrose, Auckland, which is off the back of the recently announced closure of two mills in the Ruapehu district.

“It’s devastating that so soon after the news about the Ruapehu mills, we are now seeing another pulp and paper mill go under, and around 75 job losses,” said Wagstaff.
 
“This points to increasing market failure in a critical industry, which will have severe impacts for local communities and New Zealand’s manufacturing sector.
 
“The Government should show some leadership and intervene to protect communities from further mill closures and job losses.
 
“This Government pretends it has a plan to improve the life of kiwis, and to build our economy, but we look at the choices they are making, the reality is their inaction speaks louder than words.
 
“At a time when the country is facing economic uncertainty and rising unemployment, ministers should be doing a lot more to support local manufacturers, including by stepping up with a plan to ensure power price stability.
 
“Our thoughts are with FIRST Union and E tū members and all workers at the Penrose mill who are facing the awful prospect of losing their jobs,” said Wagstaff.

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National and NZ First urged to block ACT’s anti-worker agenda

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is calling on the Government to reconsider its decision to progress Brooke van Velden’s new Employment Relations Amendment Bill, which would deny workers who have been misclassified as contractors their fundamental rights.

“If this Bill proceeds, businesses will be encouraged to exploit the contractor loophole and deny workers their fundamental rights including collective bargaining, annual leave, sick leave, holiday pay, and the right to join a union,” said Wagstaff.

“Despite what the Minister is claiming, the Bill could actually make life more uncertain for employees and employers by exposing more workers.
 
“The Government seems committed to making life harder for working people. At a time when unemployment is rising, when work is becoming scarce, this is exactly the wrong path to take. 
 
“These changes are engineered for employers in the gig economy. Uber has lost in court and the Government is going to legislate so that they, and companies like them, don’t lose again. 

“It is abundantly clear who ACT is working for – not for some of the most vulnerable workers in the country, but for multinational corporations and unscrupulous employers who want to exploit workers.
 
“National and NZ First should reconsider their decisions and block this ACT policy that is a fundamental attack on worker’s rights. They could stop this tomorrow,‘ said Wagstaff. 

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Millions Wasted on Treaty Principles Bill

Source: Council of Trade Unions – CTU

Calculations undertaken by the NZCTU Te Kauae Kaimahi show that the Government will have wasted millions of dollars to take the already failed Treaty Principles Bill forward.

“This Bill is already dead, yet it keeps taking investment away from bigger priorities for New Zealand. Overall, the Bill and its process is estimated to have cost $4.15m. This would pay for around 40 nurses – the same amount that Wairarapa Hospital is currently short,” said NZCTU Economist Craig Renney.
 
“This calculation is based on extremely conservative assumptions. We have assumed very limited engagement with departments, and only a tiny number of departmental staff (12 in total – not all full time) being involved in the direct production of the bill. We have not added in costs for bodies such as the Waitangi Tribunal, the Human Rights Commission, nor Crown Law. There are a range of other costs – such as parliamentary questions and support for the Governor General which have also been left out of this equation.
 
“That creates a cost of around $2m in departmental costs just to bring the bill to the House. National and NZ First have agreed that it will pass at first reading, meaning that it will have a second reading and a 6 month Select Committee process. That, plus the additional work this will mean for departments will likely require an additional $2.1m of expense. Again, this is a very conservative estimate, based upon just the Select Committee staff, holding meetings around Aotearoa, and the cost of 3 hours of parliamentary time.
 
“There are however significant savings that could be made right now to reduce these costs. Hon. David Seymour is not the controlling Minister for any of these departments. They could instead be directed by their controlling Ministers to not spend any further time or resources on this bill. It could then be voted down at the first reading. That would roughly halve the cost of the bill.
 
“Hon. David Seymour is entitled to put bills before the house. That is a perfectly proper thing for him to do in his role as an MP and as a Minister. But that doesn’t mean that he should have the resources of the state to support a process that is already dead. Nothing is preventing Mr. Seymour from talking about his bill or stopping him from exercising his free speech. But to further waste millions of dollars on this vanity exercise at the same time as 7,000 staff are being cut from public services shows a lack of leadership and the wrong priorities.
 
“These costings are likely to be a significant underestimate of the real costs of this process. External counsel is probably being retained to support departments in this work. External consultants will be engaged, and extensive consultation probably undertaken. During the six-month Select Committee process these costs will continue. Then there are the opportunity costs associated with doing work on a bill that has already been defeated. These resources could be used in areas that would deliver actual results for New Zealanders. In effect, this would likely double the impact of the direct spending cost.
 
“There is still time to save some of the costs associated with this failed bill – but only if actors such as the Prime Minister act now. This would not only save money, it would also signal to the public and to possible submitters that they shouldn’t waste their time on this process. Everyone would be financially better off, and it would reduce tensions on a very divisive subject. Hon. Seymour would still be able to progress his right to free speech and to promote his bill. Otherwise, we are likely going to waste the equivalent of feeding 7,205 children a free school meal for a year on a failed project,” said Renney.

Costings

Total Departmental Costs are based on a 31-week process to deliver a bill to the House. This includes Staff from TPK, Te Arawhiti, Treasury, Justice, and DPMC. Ministerial Services Staff and Parliamentary Counsel Office staff have been added to the timetable as appropriate. 12 staff – not all fully employed on this Bill – have been incorporated from the departments. 5 weeks for Parliamentary Counsel Office drafting have been added to the cost.
 
This work comes in two phases. The first phase is the cost of bringing the Bill to the House. This generates an estimated observable cost of around $2m. Then there are costs for the departments of supporting the Select Committee and the Second Reading of the Bill. That adds a further $875,000 of estimated costs.
 
Each department will have its overhead costs associated with the direct staff involved. We don’t have a direct cost for these, but we have taken the figure from the University of Auckland for NZ government research as a guide. This would cover costs such as office, IT, internal legal, HR, and training costs. These have been added, where appropriate, to direct labour costs in departments.
 
Parliamentary time is calculated per hour from the total remuneration costs of MPs. Figures are taken from the last MP pay update and recent reports of the on-costs for each MP. Three hours of parliamentary time has been allotted to this part of the costs (1 hour first reading, 2 hrs second reading), and overhead recovery is then applied. This meets the cost of the building, additional parliamentary staff including security, and the TV/translation services of the House. This generates an estimated cost of $435,000.
 
Finally, the Select Committee will be staffed (three direct staff, plus one independent advisor) for the 6-month process of engagement. It is assumed that the Committee will travel to 10 sites around Aotearoa, engaging with Iwi and others on the Bill. We have not calculated any MP costs in this part, only Committee Staff and travel costs associated with flights, accommodation, and room hire. Overhead recovery is added to the staffing component but not the other costs. This generates an estimated cost of $825,000.
 
Total estimated costs by component:

  • Departmental – $2.89m
  • Parliament – $435,000
  • Select Committee – $825,000

Estimated Total:

Full calculations are available on request.

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NZCTU slams Government for failing mill workers

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi is slamming the Government for failing to bring a plan to the table to save around 300 jobs in the Ruapehu district, following the decision of Winstone Pulp International to close the Karioi pulp mill and the Tangiwai sawmill.

“Our hearts go out to all the workers who have lost their jobs, and we stand in solidarity with them at this terribly difficult time,” said NZCTU President Richard Wagstaff.
 
“The Government had the power to keep the mill alive by creating a plan for power price stability, but they failed to deliver.
 
“This decision will be devastating for the Ruapehu district who were already dealing with high unemployment and a lack of opportunities. This is the last thing they need.
 
“Government has a responsibility to keep rural communities alive by supporting regional economic development and stepping in to show leadership when critical industries are struggling. Writing off whole communities is simply unacceptable.
 
“Local manufacturing plays an important role in our regional economies and that needs to be protected into the future. It is the role of Government to guarantee this by implementing employment, regional development and Just Transition strategies that prioritise job creation and protection in rural communities.
 
“Everyone deserves good work that is secure and pays well, regardless of where they live. This decision shows we have a long way to go to make that a reality,” said Wagstaff.

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Government cuts to pay parity don’t help children

Source: Council of Trade Unions – CTU

Government cuts to pay parity for some early childhood teachers shows the Government isn’t listening to the workers in the sector, said CTU Vice President Rachel Mackintosh.

“All teachers deserve to be paid fairly. We have a shortage of qualified early childhood staff in Aotearoa and are already losing teachers overseas. Reducing pay and conditions for relief teachers won’t make that problem any better,” said Mackintosh.

“With the sector in crisis, the last thing we need is the Government adding more fuel to that fire. The early childhood education sector already has poor teacher-child ratios, an over-burdened workforce, and difficulties in securing learning support for children who need it. Qualified and experienced relief teachers play an essential role in the sector, and reducing their pay won’t help address any of these issues.

“This is just another step in devaluing teachers by this Government. After years of hard work by teaching staff and whānau to get pay parity for this workforce, repealing a key section of it shows that they don’t understand the sector. The only beneficiaries of this decision are agencies providing teaching staff who will make more profit, and for-profit ECE centres that will use it to reduce their costs. It’s putting profit before education.

“Our concern is that this is just the start of a campaign against workers, whānau and tamariki by prioritising the wish lists of employers and business as we are seeing in proposed reforms to health and safety and employment legislation.

“The Government must prioritise listening to early childhood teachers and parents who want better and higher quality ECE services with qualified teachers. That means teachers need to be paid well. Taking pay parity away make it worse,” said Mackintosh.

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Minister must listen to Court’s Uber ruling and abandon contractor reform

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is celebrating the Court of Appeal ruling that Uber drivers were misclassified as contractors and is calling on Brooke van Velden to abandon her plans to block workers misclassified as contractors from testing their employment status in court.

The Court of Appeal’s has ruled that a worker’s status as either an independent contractor or an employee must be determined by the real nature and circumstances of the work and how the working relationship functions. Independent contractors are independent businesses, whereas workers perform work for their employer’s business.

“This is a tremendous victory for working people in Aotearoa New Zealand,” said NZCTU President Richard Wagstaff.

“The ruling proves why workers need access to justice, to challenge unscrupulous employers like Uber who are circumventing employment law by hiring people as contractors.

“Mislabelling genuine employees as independent contractors exposes workers to exploitation, denying them many of the basic protections and entitlements that are provided for employees, such as sick and annual leave, minimum wage, protection of hours and protection from unjustifiable dismissal.

“If Minister van Velden had her way, these Uber drivers wouldn’t have been able to even get their case heard in court. The implications of that are profound would undermine the very foundations of employment law.

“It would create a system that further incentivises companies to exploit the contractor loophole, undermining fair competition and eroding standard employment conditions across industries and the entire economy.

“The Minister must listen to the judgement of the Court of Appeal and recognise the rights of workers to have cases heard in the courts. There is now no excuse to pursue her unethical plans for contractor reform.

“The executive branch has a duty to uphold the rights of workers to test their employment status in court. Attempting to remove their ability to do so, because they don’t like the judicial branch’s decisions, would be an affront to constitutional norms in New Zealand.

“With the rise of the so-called “gig economy”, cases of workers being misclassified as contractors are more and more frequent. The Court of Appeal notes that whether a someone is an employee has “assumed increased importance in light of the growing fragmentation, casualisation, and globalisation of work and workforces in New Zealand”.

“Everyone deserves good work – work that is well-paid, safe and secure and has minimum rights and conditions. That means they need the legal protections afforded to employees,” said Wagstaff.

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Human rights review confirms widespread migrant worker exploitation

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is calling on the Government to take immediate action to end migrant worker exploitation in Aotearoa following the release of the Human Rights Commission review of the Accredited Employer Work Visa (AEWV) scheme.

“The report provides compelling evidence that workers are being exploited as a consequence of the AEWV policy settings, and that a few tweaks to the system won’t work – it requires a fundamental overhaul,” said NZCTU President Richard Wagstaff.

“Workers are currently losing pay, living in poverty, and sliding into an informal economy where they are exploited with little or no pay and long hours, and are being verbally and physically assaulted.  Workers have been repeatedly denied access to union representation and have failed to have their rights upheld.

“These policy settings are completely in the Governments hands – so it could end that exploitation if it chose to. The CTU is calling on the government to respond immediately to the findings of this report, meaningfully consult with migrant workers, community groups, and unions, and set out how it will implement the recommendations.

“The report repeatedly cites strong government and business relationships with unions as an effective means of supporting migrant workers and preventing their exploitation. Regulations must ensure that unions have rights to access workplaces to bring unjust practices to light.

“There must be proper resourcing for the parts of government responsible for labour rights, migrant exploitation, and prosecuting employers who don’t play by the rules.

“Concerns about the potential for human trafficking are confirmed in this review, and the need to implement modern slavery legislation. Unfortunately, we have a Prime Minister and Minister for Workplace Relations and Safety who have said modern slavery is “not a priority”.

“Every worker deserves to be treated with fairness and respect and has a right to a workplace that is free of exploitation and abuse. There is no place for migrant exploitation in a decent society,” said Wagstaff.