Category: Council Of Trade Unions

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is calling on the Government to take action on poverty and the cost of living, in response to new data released today showing an increase in child poverty rates.

The number of children living in poverty increased on all the measurements undertaken by Stats NZ, disproportionately impacting Māori, Pasifika and disabled children.

“It is intolerable that a further 23,000 children are now living without the essentials to ensure a good start in life. All families deserve to have incomes that enable them to live with dignity,” said Wagstaff.

“We are deeply concerned that the data is very likely to get even worse given the Government’s welfare changes will take money from families on the lowest incomes in the country, with their own analysis showing that the changes will put an additional 11,000 children into poverty.

“Unemployment is forecast to rise, and the Government has cut the minimum wage in real terms, ditched Fair Pay Agreements, and created further employment insecurity for young people by extending 90-day trials.

“Not only are the Government taking decisions that will lower incomes, but they are also making the cost-of-living worse by cutting free prescriptions.

“We are calling on the Government to advance policies that lift people’s incomes and ensure that everyone has enough to pay the bills, feed their kids and keep them warm through winter,” said Wagstaff.

Source: Council of Trade Unions – CTU

The union movement is sending its love and condolences to the family of Fa’anānā Efeso Collins, said NZCTU President, Richard Wagstaff, today.

“We are heartbroken for Efeso’s whānau, friends and community,” said Wagstaff.

“This news is devastating. Efeso was a leader who had so much more to give.

“Efeso was a lovely man. He was full of warmth, grace and passion for his people. “He was always a staunch supporter and advocate of unions.

He championed workers’ issues, from the Living Wage to Fair Pay Agreements.

“We will miss him dearly,” said Wagstaff.

Source: Council of Trade Unions – CTU

The Productivity Commission report released today on the impact that redundancy has on New Zealand workers shows the need for the protection that income insurance provides, said CTU President Richard Wagstaff.

The report, using a detailed study of Aotearoa New Zealand workers involuntarily laid off, shows only 50 per cent of displaced workers find new jobs immediately after layoff and only two-thirds find new jobs within six months.

“New Zealand workers are among those with the lowest levels of redundancy protection in the world, with protection levels just below those of Paraguay and Colombia,” said Wagstaff.

“The tripartite work to address this problem through an income insurance scheme was stopped by the new Government, despite rising unemployment and the likelihood of greater supply chain disruption in the future.

“As New Zealand deals with a challenging global economy, now should be the time to give workers more income and economic security – rather than less. Social Insurance would have given workers the security that is commonplace in successful economies overseas.

“The research also showed that the “earnings of workers who find new employment take almost three years to return to pre-layoff levels”. This backs previous findings from the OECD which showed that New Zealand workers faced a much higher wage scarring than workers elsewhere in the world.

“With the Government cancelling social insurance, bringing back 90-day trials, ending Fair Pay Agreements, and cutting the minimum wage and welfare in real terms, they seemed to determined to reduce security rather than increase it,” said Wagstaff.

Source: Council of Trade Unions – CTU

The decision to not fund the purchase of new Interislander ferries shows the Minister of Finance is out of her depth, said NZCTU President Richard Wagstaff.

“The failure to adequately fund the purchase of the new ferries is an example of this Government’s short-term thinking,” Wagstaff.

“The Minister of Finance is well out of her depth. What value for money is delivered by throwing away potentially hundreds of millions of dollars in penalties to pay for breaking the contract? What value do New Zealanders get from buying used ferries that will need to be remodelled anyway to work in New Zealand?

“This is classic short-term thinking – the very opposite of responsible economic management. Not only will this decision cost us right now, but it undermines the economic and social resilience of the country. We will bear the cost of this ineptitude for decades to come.

“The Interislander ferry fleet is in dire need of replacement. The ferries experience regular technical problems, disrupting plans for hundreds of thousands of New Zealanders, and interrupting the flow of $14 billion worth of freight every year.

“These new ferries would have upgraded our ability to move that freight via rail, a capacity that will be lost under Nationals new plan. It hurts our ability to deliver on our climate goals and reduces the resilience of our already strained transport network.

“The new ferries that the Government had ordered from Hyundai would have secured this crucial transport link for decades to come and increased the flow of goods and does so with a lower emissions profile. Instead of building Aotearoa up, It is telling that this Government places little value on the key connections between our island nation.

“This kind of infrastructure is essential if we are to modernise and grow the economy over the coming years. This Government has talked a lot about getting the economy back on track, yet it is axing a vital piece of infrastructure that would deliver this.

“The Government has claimed that the upgrade will cost too much. However, previous CTU’s analysis shows that, over the lifetime of the assets, the cost of upgrading the Interislander ferries is only around $11 per New Zealander a year. By contrast, the landlord tax cuts will cost Kiwis $139 each year,” said Wagstaff.  

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is concerned that the Government’s welfare and employment policies will make it harder for people who lose their jobs, following the release of new employment data.

The data shows that unemployment rose for the December 2023 quarter, to 4%, and the Treasury and Reserve Bank both expect it will rise to 5% by the end of this year. In real terms, that means a further 60,000 people will be unemployed, compared to 2022.

“Unemployment is always stressful, but the Government’s recent policy decisions will make things even more difficult for displaced workers,” said Wagstaff.

“The Government has ended work on the income insurance scheme, which would have provided displaced workers with up to seven months of financial support after losing their job, at 80% of their salary or wages. This would have helped to reduce the high rate of wage scarring – the pay cut that workers often experience as a result of losing their job – that New Zealand has compared to our OECD peers, and supported workers to upskill and retrain.

“The Government has announced its intention to introduce new sanctions for welfare recipients. But the evidence is clear that this punitive approach to welfare doesn’t work, and only serves to compound social harm and increase poverty.

“The Government has also extended 90-day trials to businesses of all sizes, meaning that many job seekers who do find work will feel insecure in their employment for the first three months. As with their other policy decisions, there is no evidence that 90-day trials increase employment.

“Instead of helping people through the cost-of-living crisis, the Government’s policies are further reducing employment security, and increasing poverty,” said Wagstaff. 

Source: Council of Trade Unions – CTU

The decision today by the Government to cut the minimum wage in real terms is a sign of what they think about workers, said CTU Economist Craig Renney.

“All New Zealand workers have the right to a liveable income to support their families – they deserve to be paid a Living Wage,” said Renney.

“The Government is increasing the minimum wage by a paltry 2% to $23.15. This falls well short of the Living Wage rate, which is currently $26. That is simply heartless at a time when so many are doing it tough.

“Inflation is currently 4.7%, and a 2% increase means in real terms cuts for the lowest income workers across New Zealand. Taking money away from hundreds of thousands of workers during a cost-of-living crisis defies understanding and is poor economics.

“The proposal wasn’t even supported by MBIE officials, who recommended a 4% increase, rather than a 2% increase. That’s an annual difference of $944.32. If the minimum wage had kept up with inflation, that would have been a $1,274 difference annually – or $24.52 a week.

“How are workers meant to keep up with rising food and rent costs if the Government is cutting their wages in real terms? This is a Government that doesn’t seem to know how difficult life is for working people and those on low incomes. It’s simply out of touch and focused on tax rises for the wealthiest people and landlords instead.

“Such an inadequate increase may save some New Zealand businesses a few dollars, but it will cost everyone more in the long-run. It will mean higher payments in tax credits. It will mean higher support for rental payments. It makes no sense from an economic and or fiscal perspective.

“The Government should do the right thing and deliver a minimum wage that doesn’t see New Zealand workers fall further behind,” said Renney.

Source: Council of Trade Unions – CTU

NZCTU Economist Craig Renney is calling on Finance Minister Hon. Nicola Willis to scrap her plan to cut frontline services after she acknowledged today that this is likely to happen.

“In September last year, the CTU showed the areas that were at risk – these included the courts, biosecurity, and cybersecurity. National refused to answer questions at the time, but now reports in the media show this to be true,” said Renney.

“These are frontline services that all New Zealanders rely on. The Government needs to scrap its proposed tax cuts and protect the essential services that keep this country running.

“We are now seeing that it’s even worse than had been advertised at the election. Ministers aren’t taking responsibility for the cuts – that is now the responsibility of Chief Executives. The cuts package now extends to even more departments and public services, as the Government desperately tries to make its pre-election promises work.

“The Finance Minister’s credibility is once again on the line. Her pre-election promise was that as Finance Minister she would “reduce the cost of back-office government bureaucracies with an immediate savings drive across a series of identified government agencies while protecting frontline services.’[1] It’s now very clear that the Minister is breaking her promise to New Zealanders.

“The Government is also claiming that this is part of moving resources into the frontline. This is simply untrue. These cuts are needed to pay for tax cuts that will give landlords thousands of dollars a year while giving those on the minimum wage a couple of dollars a week.

“Aotearoa New Zealand’s population is rising rapidly. Unemployment and the demands on public services will keep increasing. Yet the Government is now no longer ruling out cuts to essential services such as customs, food standards, or search and rescue.

“These aren’t spending cuts to fund new frontline services. Instead, they are cutting to fund their reckless tax cut policy for the wealthiest New Zealanders,” said Renney.

---

[1] p17 National’s Back Pocket Boost, 30 August 2023

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff said he was disappointed in the Government’s short-sighted decision to shut down the Regional Skills Leadership Groups (RSLGs), saying it is further evidence of the Government’s lack of a strategy when it comes to vocational education and workforce planning.

“Coming off the back of the reckless decision to disestablish Te Pūkenga, this is another example of the new Government’s slash and burn approach. As with Te Pūkenga, the government hasn’t announced what will be replacing the RSLGs. This will only add to the uncertainty facing the vocational education sector and its workforce,” said Wagstaff.

“The RSLGs, which were set up as part of the Reform of Vocational Education, play an important role in identifying skills and workforce needs across different regions of the country.

“Aotearoa New Zealand suffers from persistent skills shortages and high levels of skills mismatching. This hinders productivity growth and increases the wage scarring experienced by workers who lose their job.

“With unemployment forecast to rise over the next year, we should be looking at how we can support people into good work and help employers find the essential skills they need.

“The NZCTU supported the establishment of the RSLGs as mechanisms for rebuilding New Zealand’s capacity for regional economic development, including skills and workforce planning.

“Importantly, the RSLGs promote worker voice in the development of training initiatives and solutions to persistent labour market problems in different parts of the country.

“Union representatives on RSLGs speak for the interests of our members as learners and give workers a voice in the skills and workforce development strategies of their regions.

“While the new government has been quick to first disestablish Te Pūkenga, and now the RSLGs, we are yet to hear what its alternative plan is for vocational education,” said Wagstaff.

Source: Council of Trade Unions – CTU

The Council of Trade Unions Te Kauae Kaimahi is once again advancing its call for a total ban on engineered stone in Aotearoa New Zealand. They are urging Workplace Relations and Safety Minister Brooke van Velden to listen to unions, academics, industry leaders, and health and safety experts who all agree that banning this product is crucial.

Australia is set to become the first country in the world to ban engineered stone. From 1 July 2024, Australia is taking engineered stone off the market following its decision to ban importation, manufacturing, and use of the product.

“The evidence of the harm caused by engineered stone is overwhelming. It is clear to us that a ban on this product is the only option,” said CTU President Richard Wagstaff.

“Dubbed the modern-day asbestos, exposure to the silica dust from cutting engineered stone can cause the fatal lung disease silicosis.  

“Workers exposed to this material are developing symptoms at an accelerated rate, and at a much younger age than other occupational respiratory diseases. Silicosis is an incurable disease, but the exposure is preventable. 

“The Australian Government listened to the overwhelming evidence and implemented a total ban. That decision will save workers’ lives.

“The CTU sent a letter to Minister van Velden in December 2023, calling on her to follow the Australian example and ban the importation, manufacturing, and use of engineered stone in New Zealand.  

“The Minister’s silence on this issue demonstrates a lack of concern for the health of working people. This needs to be addressed urgently.

“The Minister has the power to eliminate this hazard and save lives. Instead of prioritising the removal of Fair Pay Agreements and extending trial periods, the Minister should focus on making work better and remove engineered stone.

“Engineered stone is a fashion product, and other options are available. It’s not worth the life-altering damage to workers, and their whānau, to keep this material in the market,” said Mr Wagstaff.