Category: Council Of Trade Unions

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Unions celebrate May Day during tough time for working people

Source: Council of Trade Unions – CTU

On International Workers’ Day, also known as May Day, the New Zealand Council of Trade Unions Te Kauae Kaimahi and the wider union movement are celebrating the proud history of the labour movement during a tough time for working people.

“May Day is an opportunity to pause and remember the hard-won achievements of the labour movement, from the eight-hour day to weekends and the minimum workplace rights and conditions including health and safety,” said NZCTU President Richard Wagstaff.
 
“It is a tough time right now for working people in Aotearoa New Zealand, with unemployment rising and government launching an all-out attack on their rights and conditions, from 90-day trials, to repealing Fair Pay Agreements, to widespread job cuts in the public service. It’s more important than ever that we take time to reflect on the power we have when we come together as working people to organise for a better future.
 
“As a movement, sometimes we face setbacks, other times we make great advances. But we keep moving forward and making progress for working people.
 
“On this May Day, let’s recommit to the idea that everyone deserves good work – work that is secure and pays well, provides lifelong opportunities, fosters health and wellbeing, enables people to have a voice in the workplace, and contributes to a meaningful and fulfilling life.
 
“If you want to be part of making history, join your union, get involved and let’s keep up the proud record of the labour movement,” said Wagstaff.

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NZCTU welcomes corporate manslaughter bill introduction

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is calling on all political parties to support the new Member’s Bill from Labour’s workplace relations and safety spokesperson Camilla Belich MP that would ensure negligent companies are held accountable when their employees are killed at work.

The Crimes (Corporate Homicide) Amendment Bill would introduce a new criminal offence that provides that a person or entity will commit the offence if they have a relevant legal duty of care, and engage in conduct that exposes any individual to whom that duty is owed to a risk of death or serious injury, are reckless as to that risk, and their conduct results in the death of the individual.
 
“Unions have long been calling for corporate manslaughter legislation. We commend Camilla Belich for showing leadership on this Workers’ Memorial Day by introducing this Bill and fighting to uphold the health and safety of working people,” said Wagstaff.
 
“This Bill would bring us in line with international best practice, but most importantly, it would save workers’ lives.
 
“In Aotearoa New Zealand, the rate of workplace death is one of the worst in the developed world. There were 57 workplace fatalities in 2023 and three fatalities in the first 2 weeks of 2024. Every week 17 workers are killed as a consequence of their work.
 
“It’s a record we should be ashamed of, but it doesn’t have to be this way. This Bill is one of the most effective ways of preventing workplace deaths, as it holds employers accountable if they do not prioritise health and safety at work.
 
“Everyone deserves good work – work that is safe and secure, well-paid, and contributes to a meaningful and fulfilling life.
 
“The NZCTU are calling on the Government and all political parties to do the right thing and help ensure everyone is safe at work by supporting this Bill,” said Wagstaff.

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NZCTU stands in solidarity with Myanmar community in opposition to junta visit

Source: Council of Trade Unions – CTU

Today NZCTU President Richard Wagstaff joined the Myanmar community at a rally outside MFAT’s Lambton Quay offices, in opposition to the attendance of officials from the illegal Myanmar military junta at today’s ASEAN-NZ dialogue meeting.

“Myanmar’s military junta has been internationally condemned for crimes against humanity in its ruthless war against its own people,” said Wagstaff.

“The union movement stands in solidarity with the Myanmar community in their fight for peace, justice, and democracy.

“Given this Government claims its tough on crime, how can it allow war criminals into the country? The Government should revoke the officials’ visas and expel them from the country.

“Across the world governments have stood firm in excluding and sanctioning the junta. For New Zealand to break ranks now and welcome them to our country is a stain on our democratic principles and international reputation, and a betrayal of the Myanmar community in New Zealand,” said Wagstaff.

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Inflation data shows need for a plan on climate and population

Source: Council of Trade Unions – CTU

Data today shows headline CPI inflation at 4%, continuing the fall begun in March 2023. Rises are concentrated in particular sectors – especially services. This data also shows that that the minimum wage increase will be half the rate of inflation this year, taking money out of the pockets of those with the least.

“Inflation was being generated by rents, (4.7%), rates (9.6%), and insurance (14%). Rents are rising at the fastest rate since they were recorded in 1999. Housing & vehicle insurance increased more than 20%. These are all in areas that working people can’t avoid,” said CTU Economist and Director of Policy Craig Renney.

“Pricing for goods that in the past have generated inflation such as food are now much more subdued. Vegetable prices have fallen nearly 15% annually according to this report.

“However, petrol prices rose by 12% from last year. This is worrying as petrol pricing tends to lead inflation data. The faster we can transition to an electric vehicle fleet the better.

“Inflation is now in sectors that don’t respond well to interest rate changes in New Zealand – such as insurance. This should give the Reserve Bank a reason to pause and reflect on its future interest rate path.

“Overall, this data suggests that inflation is continuing its long road back to the Reserve Bank rate. In the last three months, inflation was well within the 1-3% band being targeted.

“Inflation is still higher in New Zealand than it is in other comparable countries such as Australia or the USA, where economic and employment growth is also stronger on the back of strong infrastructure spending, government investment, and higher wages.

“Prices in New Zealand are responding to pressures such as population growth and climate change. The absence of both a plan and investment from government in these areas suggests an absence of action on future price rises,” said Renney.

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Minister of Finance admits to new borrowing need

Source: Council of Trade Unions – CTU

At Finance and Expenditure Committee today the Minister of Finance admitted that the Government will have to borrow to make ends meet in the forthcoming Budget.

“This admission is in direct conflict with the statements made by Nicola Willis in opposition that the tax plan requires no additional borrowing. Yet today we discover that additional borrowing will be happening,” said CTU Economist Craig Renney.

“The Minister is still insisting that the additional borrowing will not pay for tax cuts, even though it’s clear that without these tax cuts, additional borrowing would not need to take place. The obvious lesson from all of this is that the government is borrowing to pay for tax cuts.

“The economics of this make no sense. Given the economic circumstances that New Zealand is in, if we are borrowing, it should be for investments that will lead to long-term productive growth. It should be for infrastructure, R&D, and public services. Instead, we are providing yet more money for landlords, and more money for higher-income earners.

“The Minister of Finance had an opportunity at the Budget Policy Statement to come clean about how her tax plan would be paid for. The Minister should provide that information to the public, bearing in mind we are just seven weeks away from the Budget, so the details should have been finalised.

“But what would be even better is if the Minister announced a plan to invest in public services, deliver economic growth, and abandon the currently unfunded tax cuts,” said Renney.

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CTU stands in solidarity with public service workers

Source: Council of Trade Unions – CTU

The NZ Council of Trade Unions Te Kauae Kaimahi is standing in solidarity with workers affected by the latest round of public service job losses and calls on the Government to stop their reckless attacks on essential public services, said CTU President Richard Wagstaff.

“These cuts have a massive impact on services that save New Zealanders lives, as we can see with cuts to the Suicide Prevention Office, but we also must not lose sight of the devastating impact job losses are having on thousands of families across the country,” said Wagstaff.

“Many of these workers are low paid and already struggling to get by, serving their communities in jobs that deliver essential services for the public.

“Hearing stories of laid-off workers having to pull their kids out of childcare and stop mortgage repayments demonstrates the real heartbreaking impact of public service cuts.

“It is the role of government to invest in services and prevent rising unemployment. Yet here we have a government that is actively pushing people into unemployment in their ideological pursuit of tax cuts for landlords and high-income earners.

“These ongoing job losses highlight the importance of the income insurance scheme the Government axed in haste.  It would mean any workers who lose their jobs would continue to receive a decent income while they look to find a good job that utilises their skills and experience.

“New Zealand workers are among those with the lowest levels of redundancy protection in the world. As we deal with a challenging global economy, now should be the time to give workers more income and economic security – rather than less,” said Wagstaff.

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CTU calls on Government to exclude Myanmar Junta from ASEAN meeting

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is supporting the 33 Myanmar community organisations in New Zealand who are calling on the New Zealand Government to reverse the invitation to the Myanmar military junta to join the ASEAN-NZ Dialogue meeting scheduled for 18-19 April in Wellington.

“Inviting the Myanmar junta representatives at this time sends the signal that New Zealand both recognises and supports the existence of this murderous regime,” said Wagstaff.
 
“Myanmar’s ruling junta has targeted trade unions and has been internationally condemned for crimes against humanity in its ruthless war against its own people.
 
“Across the world the UN and democratic governments have stood firm in excluding and sanctioning the military junta. For New Zealand to break ranks now, and welcome them to our country is a betrayal of our principles and our reputation, and a betrayal of the Myanmar community in New Zealand. 
 
“The New Zealand Government, as host nation, must intervene to prevent the Myanmar junta representatives attending this meeting,” said Wagstaff. 

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Unions deliver MPs petition to stop real terms cuts to the minimum wage

Source: Council of Trade Unions – CTU

Today a delegation from the union movement delivered a petition of nearly 9,000 people calling on the Government to commit to annual minimum wage increases that keep up with rising costs.

“This Government is effectively cutting the wages of low-income families by not increasing the minimum wage to keep up with rising costs. This is on top of getting rid of free prescription fees, scrapping support for public transport fees, and increasing benefit sanctions,” said CTU President Richard Wagstaff.
 
“This petition sends a clear message to this Government that all workers have the right to a liveable income to support their families.
 
“We appreciated hearing from workers in homecare and retail at Parliament today about the reality of what it’s like living on the minimum wage. In response, Labour, Green and Te Pāti Māori MPs committed that they would deliver significant increases to the minimum wage when they are in government.
 
“The 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. This is even more true during a cost-of-living crisis.
 
“How are workers meant to keep up with rising food and rent costs when the Government is cutting their wages in real terms?
 
“All workers should be paid more than the Living Wage, but at the very least, the Government must ensure that the minimum wage is enough to get by. Pushing wages backwards at a time when so many are doing it tough is simply heartless,” said Wagstaff.

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Budget Policy Statement still missing in action

Source: Council of Trade Unions – CTU

The Government has released its Budget Policy Statement today, showing worsening economic forecasts with inflation falling more quickly than expected, caused by unemployment rising and growth stalling. However, the statement lacks information on what the Government intends to do in response, said CTU Economist Craig Renney.

“The Budget Policy Statement is supposed to provide guidance and certainty around the forthcoming Budget. Sadly, both are in short supply,” said Renney.

“The Government has replaced objectives that looked to lift New Zealanders’ wellbeing and tackle climate change with cuts to public services. Kiwis deserve better than this.

“By not providing any information on forthcoming spending allowances, we have no insight into how the Government is planning to invest in New Zealand. This note reads like 8 pages of excuses for not doing your homework.

“Promises to get back to surplus have gone out the window. After fearmongering for so long about our debt position, the BPS accepts that our debt levels are within the bounds of “prudence on debt sustainability”.

“This is the time for Government to be acting responsibly by investing in New Zealand and raising its productive future. However, instead they appear to be acting pro-cyclically – cutting investment and spending at a time when the economy is in the doldrums.

“The Government has no plan for sustainably growing the economy or creating good jobs. There is no case made for tax cuts, particularly tax cuts for higher-income earners or landlords. There is nothing to meet the demands of a growing population with higher needs. Instead, it’s a return to the rhetoric that justified sustained underinvestment in the public realm.

“New Zealanders who read the Budget Policy Statement will find it short of information and short of ideas. It’s not surprising that analysts weren’t allowed to access the Government lock-up for this information release, as they would have found little to say,” said Renney.

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More questions for the Government’s tax changes as costs grow

Source: Council of Trade Unions – CTU

The Government should reconsider the delivery of their tax plan, as costs continue to escalate, said CTU Economist Craig Renney.

“Our analysis, using the latest data available from IRD and the Treasury, indicates that the cost of the income taxation changes is now half a billion dollars more than National indicated in its pre-election fiscal plan,” said Renney.

“All up, the modelling undertaken by the CTU shows that the cost of indexation is now likely to be $9.5bn over the next four years – against the $9bn budgeted by National.

“The CTU analysis should alarm New Zealanders. It should also worry anyone who genuinely believes in value for money or in social investment.

“The analysis does not consider any additional increases caused by a rising population, which will add to the costs. Over the next four years, if the population rose at the same rate as in the pre-COVID period, this would likely add a further $300m to the cost of the income tax package.

“These costs are in addition to the many problems already being faced by the plan. $3bn for landlords – up $800m. $1.3bn missing from cutting welfare payments. Casino taxes bring in only $150m instead of $750m. The Government is relying on more than $1bn of tobacco taxes, and not delivering promised Working for Families changes, to prop up the package.

“Overall, the tax plan is now likely to be billions of dollars short of its overall revenue target. The only way left to fill the gap is through even deeper cuts to public services and public investment. Already we are seeing investment in areas like disability support, free school lunches and pay for the Police suffering, while landlords are guaranteed a $3bn payday.

“These are just part of many damaging consequences that New Zealanders are now seeing from the Government’s reckless commitment to tax cuts.

“The Budget Policy Statement is on Wednesday, and the Government should use the opportunity to show New Zealanders how it is going to make its plans work, and what it is going to cut to deliver them. Better still it could use that opportunity to abandon its plan and invest in all New Zealanders, not just a few,” said Renney.

Costed National Pre-Election Estimate Revisions Difference in cost
New Analysis
Income Taxation – Direct  $9bn  $9.5bn  $490m
Income Taxation – Population $0 $300m  $300m
Known Costings
Interest Deductions  $2.1bn  $2.9bn  $800m
Foreign Buyer Tax  $3bn $0 $3bn 
Commercial Building Depreciation $2.1bn  $2.3bn   -$200m
Gambling Tax  $716m  $151m  $565m
Brightline Adjustment  $200m  $202m  -$2m
Climate Dividend  $2.36bn  $2.05bn  $315m
Close Labour Programmes $2.12bn  $2.62bn   -$497m
Benefit Indexation $2.04bn  $670m  $1.37bn
Yet To be Costed
Immigration Savings $492m  $492m $0
Public Service Cuts  $2.38bn  $2.38bn $0
Contractor Savings  $1.6bn  $1.6bn  $0
Abandoned Policies
App Tax reversal $206m  $0m   -$206m
Working for Families Changes $1.4bn  $845m   -$555m
New Revenue
Tobacco Taxation $0 $1.5bn  $1.5bn
Total gap in tax plan $3.83bn