Category: Council Of Trade Unions

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NZCTU slams Government cutting disabled workers wages as disgraceful

Source: Council of Trade Unions – CTU

The NZCTU is slamming a decision by the Government in Budget 2024 to cut a programme which ensured that disabled workers are paid the minimum wage.

“It is disgraceful that this Government is cutting the incomes of hundreds of workers with disabilities across Aotearoa New Zealand,” said NZCTU President Richard Wagstaff.

“The idea that any worker should be paid below the minimum wage, let alone as low as $2 per hour, is totally unacceptable.

“The Government was elected on a platform of supporting New Zealanders through the cost-of-living crisis, and yet with this change they are intentionally making life harder for disabled workers,” said Wagstaff.

“The previous Government’s decision to end the minimum wage exemption for disabled workers by paying employers a subsidy was a long-overdue decision,” said Nicole Wallace, convenor of Kaimahi Whaikaha, the NZCTUs disabled workers sector group.

“That policy was the result of decades of advocacy by workers with disabilities, the union movement, and disabled people’s organisations. Workers with disabilities deserve to work with dignity.  

“It is deeply disappointing that the new Government is reversing that policy and condemning many disabled workers to low wages.

“Workplace discrimination and lack of access to work are a significant contributor to high rates of poverty among people with disabilities. This decision will further increase poverty among disabled people,” said Wallace.

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GDP data camouflages economic weakness

Source: Council of Trade Unions – CTU

Data today released by Statistics New Zealand shows that the economy grew by just 0.2% annually, showing stalled growth and weak demand. There has now been six successive quarters of decline, the worst period since the GFC. This is not an economy that is growing or working for working people.

“This data confirms the weakness of the economy at this point. We are becoming more dependent for growth on a few sectors, such as dairy exports, tourism, and rental services. Overall, our exports of goods and services fell in real terms by 0.4%. The top level growth figure of 0.2% growth is hiding real problems in the economy,” said CTU economist Craig Renney.

“On a per capita basis, annual GDP fell by 2.4%. Business investment fell 0.5% overall, led by a decline in plant, machinery and equipment. Households annual consumption of durable and non-durable goods fell 2.6%. This is a very weak set of accounts.  

“GDP data showed declines in output for mining, manufacturing, construction, wholesale trade, retail trade and accomodation, transport, postal and warehousing. Falls occurred in professional, scientific, and technical services. Annual GDP growth was weaker than Australia, Canada, the EU, the US, and the OECD average of 1.7%.

 “This dataset supports the view that many people will already hold – the economy is limping along. Last months Budget had no plan for economic growth, nor any ideas as to how to make the economy work for working people. Countries that have invested in their productive capacity – such as the US – have seen much stronger and more sustained growth.

“Now should be the time that we invest in Aotearoa. Growth is being held back by a lack of investment, both by the government and the private sector.

There is no confidence in the economic management of this country because there is no plan for anything except a tax cut, and reducing government investment in areas such as housing, research and development, and climate change,” said Renney.

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New Zealand not in Better Health after Budget 2024

Source: Council of Trade Unions – CTU

The NZCTU has analysed the health spending at Budget 24 in conjunction with ASMS and NZNO. Health funding was central during the election campaign. All major political parties stated that they would increase health funding every year.

 “This Government has added $93 million to health operating expenditure for the 2024/25 fiscal year on a net basis. This appears to be much less than the $2 billion of new operating expenditure claimed in the Budget. Much of that is not new money, it’s simply recycled expenditure. When adjusted for inflation, total operating expenditure fell by $775 million or nearly 3%,” said Craig Renney, NZCTU Economist and Director of Policy.

“With population growth, this figure becomes even more troubling. Per capita operational expenditure on health fell by 1.3%, and real per capita expenditure (i.e., adjusted for inflation) fell by 4.5% on current population projections.

“Many election promises were not delivered in Budget 2024, including:

  • 13 new cancer drugs
  • 50 additional doctors per year
  • More nurses and midwives
  • Funding a new medical school.

“As an example of the priorities within government, Budget 2024 commits more new money to funding security guards for A&E departments than to training new medical staff. We would question whether hospitals would need so much security if patients were being seen more quickly by doctors.

“This Budget doesn’t appear to have addressed any of the key workforce shortages in any meaningful way. This is likely to increase stress levels across the workforce and encourage more trained medical staff to move overseas.

“Budget 2025 will present another opportunity to address the shortages being generated by this Budget. The Coalition Government needs to take that opportunity to invest properly in health services and health workforces,” said Renney.

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Review an opportunity to strengthen workplace health and safety

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on Minister Brooke van Velden to ensure that her review of health and safety law puts the voices of workers front and centre.

“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. That must be the number one priority of any review to health and safety laws,” said Wagstaff.

“This review must include robust consultation and engagement with workers and their unions, to ensure best practice health and safety. It is workers who bear the brunt of poor health and safety, the people doing the work are the best placed to understand risks.

“I am concerned that the announcement of this review foreshadows a weakening of a long-standing consensus on improving workplace health and safety in Aotearoa New Zealand.

“The current Health and Safety Act is generally working well, and it is line with international best practice. What we need is to build on the current system, and strengthen the law, rather than weaken it.

“This Government’s aversion to regulation must not put the health and safety of workers at risk. Good health and safety relies on having a strong regulator, capable employers, and informed and empowered workers working together.

“Good businesses know the importance of health and safety, it’s not a tacked-on compliance cost but a standard part of good business practice.

“Under the Minister’s watch, WorkSafe has undertaken job cuts and is under further pressure to find even more cost savings. This is a recipe for further workplace injuries and death.

“This review is a great opportunity to strengthen New Zealand’s approach to health and safety. Some easy wins for the Minister would be to ban engineered stone and introduce corporate manslaughter legislation,” said Wagstaff.

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Proposed Holidays Act changes undermine workers’ entitlements

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is calling on the Government to not reduce worker entitlements in their review of the Holidays Act.

“We are concerned that the proposed changes undermine the agreed position reached by unions and business under the last government,” said Acting NZCTU President Rachel Mackintosh.

“Under the guise of ‘simplicity’, the Minister seems intent on reducing hard-won entitlements that have been put in place for working people.

“Worker entitlements in the Holidays Act must be protected through this review. There appear to be no plans to engage with workers or their unions, despite them being the people who are directly impacted by this.

“We reject the idea that part-time workers should have their sick leave entitlement pro-rated. Viruses and other illnesses have no regard for hours of work.

“The proposed changes are irresponsible, and will disproportionately impact on Māori, Pasifika, women and other vulnerable workers, who are more likely to be in part-time and insecure work.

“People who are sick should be supported to stay at home and not spread sickness around workplaces.

“These changes will force more people to go into work sick, and that represents a step backwards. Ultimately, it would be worse for businesses, families and communities and our stretched health system.

“Everyone deserves good work – and that means workers should have enough leave available to look after their health and wellbeing and live a meaningful and fulfilling life,” said Mackintosh.

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Budget 2024 fails to deliver investment that New Zealanders need

Source: Council of Trade Unions – CTU

Budget 2024 is placing this governments ideological wants before real New Zealanders’ needs.

“Tax cuts and spending cuts are favoured over addressing the cost-of-living crisis and delivering the investments that New Zealanders need,” said NZCTU Economist Craig Renney.

“Nicola Willis has failed her own tests that she set herself, such as when she said her tax cuts would “not require any additional borrowing” said Renney. According to Treasury, the Government will borrow an additional $17.1bn by June 2028. Tax cuts will cost nearly $10bn. Future taxpayers are going to pay for tax cuts today.

“Willis also claimed that she would be able to deliver on all National’s election promises. Yet the tax cut programme doesn’t include the Working for Families changes promised by National in opposition. The gambling tax changes were supposed to bring in $716m over the next four years. They now bring in $190m. It’s now clear that the tax package isn’t being delivered as promised.

“The Budget also fails the test of not cutting front-line services. Real terms cuts are made to operating grants to education. Vote Customs sees only cuts, no investment at all. The same is true for Agriculture, Biosecurity, Fisheries, and Food Safety, as it is for Māori Development and Pacific Peoples.

“The Budget fails the test of helping to end child poverty. Officials now forecast that  targets on child poverty will be missed significantly. The Government states that, “A key driver of child poverty is living in a benefit-dependent household”. In reality, the key driver of living in poverty is being poor – something that is not helped by real terms cuts to the minimum wage, and cuts to welfare payments.

“This Budget fails the test of preparing New Zealand for the future. Investment to support business, science, and innovation is cut by $1.4bn – and only $700m is returned. This includes cutting large elements of the Warmer Kiwi Homes programme, which improves the energy efficiency and health of New Zealand’s ageing housing stock. Tackling climate change is no longer a concern, with $180m cut from the Energy Efficiency and Conservation Authority. The National Resilience Plan, established to help with future natural disasters, is ended.

“The Government has clearly signaled its values with this Budget. Short-term benefits for some in the form of tax cuts will come at the cost of long-term borrowing, rising child poverty, and increasing insecurity from challenges such as climate change and rising unemployment.

“This is a Budget for the few. It doesn’t deliver for the people who need it most. The Government has failed the most important test of all – delivering a better future for Aotearoa,” said Renney.

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NZCTU calls on Wellington councillors to vote against airport privatisation

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff backs the thinking of 74% of Wellingtonians in rejecting the airport privatisation.

“This is an important public asset, and the council share has reliably generated returns for Wellingtonians. In the last year alone, it generated $20.4m,” said Wagstaff.

“The best thing we can do is maintain control over a public monopoly like the airport to make sure that it is run in the public interest.

“There has never been a financial case for the sale, and the poll shows that there is no popular demand for it either.

“Instead of selling our shares, we should be using our shareholding and presence on the board to make sure that the airport is great employer, is committed to decarbonisation and that it continues to be great public asset for the benefit of Wellingtonians.

“Under the companies act our 34% shareholding prevents the airport from making any strategic decisions that would harm Wellingtonians. It also gives us 1/3 of all seats on the board.

“The privatisation of assets in Christchurch and the ports of Auckland have been rejected by Councillors there because they don’t stack up. It doesn’t stack up here either and Wellington council should follow their example by voting against a share sale that there is no mandate for.

“As a nation, we need to secure our future through building economic resilience and a just transition to a low-emissions economy. That means keeping public assets in public ownership,” said Wagstaff.

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NZCTU launch project to set out alternative vision for Aotearoa

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions Te Kauae Kaimahi has today launched Reimagining Aotearoa Together, a long-term project that will set out an alternative vision for Aotearoa that looks beyond the narrow confines of the policy straight jacket adopted by successive governments.

“Reimagining Aotearoa Together is a response to the continued failure of government to deal with the inequality and unfairness at heart of Aotearoa New Zealand’s society and economy,” said NZCTU President Richard Wagstaff.

“We will be reaching out to workers, tangata whenua, community allies, NGOs and interested New Zealanders to develop transformative policies that get to the heart of the change that is so desperately needed.

“We will also be growing a movement of people who are ready to go out and lobby political parties to adopt the policies in the lead up to the next election.

“Together we need to secure a vibrant, aspirational future that honours Te Tiriti o Waitangi and works for the many, not the few.

“Successive governments have failed to tackle the generational crises that confront us, from inequality, to climate change, and the future of work.

“We know that if we continue down the path of the past few decades, we will get more of the same – people working longer hours, and still not having enough to pay the bills and keep a roof over their heads. The wealthy getting richer while the rest of us suffer. A polluted natural environment and increasingly unstable climate.  

“People are sick and tired of what seems like an endless cycle of failure to meet these challenges. It’s like being stuck on a revolving conveyer belt with no off ramp.

“That’s why it’s time we stepped up and set out a comprehensive vision for change that can’t be ignored by those in power.

“A better way is possible. The future is not set in stone. It will be determined by the choices we make now,” said Wagstaff.

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NZCTU calls on Govt to reverse disestablishment of Pay Equity Taskforce

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi Secretary Melissa Ansell-Bridges is calling on the Government to reverse their decision to disestablish the Pay Equity Taskforce team, as it will result in gender and ethnic pay disparities persisting as pay equity claims go unaddressed.

NZCTU Te Kauae Kaimahi Secretary Melissa Ansell-Bridges is calling on the Government to reverse their decision to disestablish the Pay Equity Taskforce team, as it will result in gender and ethnic pay disparities persisting as pay equity claims go unaddressed.  

“We are deeply concerned by the disestablishment of the Pay Equity Taskforce. It sends a message that the government is washing its hands of responsibility for ensuring that working women aren’t being discriminated against in their pay,” said Ansell-Bridges.

“It is shocking and totally unacceptable that the Government is essentially saying that there is no role for government in resolving pay equity claims and getting rid of discriminatory gender pay gaps. 

“We must ensure that all communities are free from discrimination, paid fairly and have good incomes. That means addressing pay equity claims as a matter of urgency.

“The Taskforce was already understaffed, and claims were already taking too long. This decision will greatly compound the problem and undermine the progress toward pay equity in the public sector.

“This decision is reckless and isclearly part of the Government’s widespread public service cuts, which are undermining essential services in order to pay for tax cuts for landlords and the most wealthy.

“The Taskforce is still needed. There are numerous claims still unresolved, and all resolved claims still need to be reviewed regularly, which means there must be a continued role for government.

“Everyone deserves good work that pays well, and that means we must not tolerate anyone being paid less because they work in industries that have been historically undervalued by virtue of being female dominated.

“This is another attack on working people from this Government, which has shown no regard for workers’ rights. They must reverse these changes and uphold the principle of fair pay for all people,” said Ansell-Bridges.

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Unemployment data shows need for the Government to act now

Source: Council of Trade Unions – CTU

NZCTU Economist Craig Renney said new data released by Statistics New Zealand shows the need for Government to act now, with unemployment rising from 3.4% to 4.3%.

“There are now an additional 31,000 people unemployed since this time last year. Unemployment rose more quickly for women, kaimahi Māori, and for Pacific Peoples. The number of young people not in education, employment or training jumped 17%. This is a tough time for working people,” said Renney.

“Unemployment is a lagging indicator, meaning changes in the economy take time to fed through to labour market. The weakness in the economy is catching up with workers. The unemployment rate rose in 10 out of 12 regions of New Zealand. 119,000 Kiwi workers wanted more hours but couldn’t get them – a rise of nearly 30% from a year ago.

“This information should be a wake-up call to the Government. Unemployment is rising, but there is no plan to deal with the increase in those who will need help. Cuts to public services that would have helped the newly unemployed will likely make this situation worse.

“Workers wages are also showing signs of strain, with the increase in average hourly earnings (5.2%) rising at the slowest rate since March 2022. The Labour Cost Index is showing its lowest rate of increase since December 2022 at 4.1% – almost the same as inflation which is at 4%. Workers wages are barely keeping up with inflation.

“The NZCTU doesn’t accept that job losses and families being thrown into poverty are the right way to manage the economy. Add to this real term cuts to the minimum wage, and cuts to welfare payments, and there are all the ingredients needed for worker exploitation and increasing child poverty.

“The Government has a chance to act now before unemployment rises further and help make sure that workers and their whānau don’t bear the costs of their changes,” said Renney.