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.
Parental leave payments will increase by 6% from Monday 1 July 2024 to reflect the rise in average weekly earnings.
The maximum parental leave payment rate for eligible employees and self-employed parents will increase from $712.17 to $754.87 gross per week.
Under the Parental Leave and Employment Protection Act 1987, eligible parents are entitled to payments equal to their normal pay up to the current maximum rate. The maximum rate is adjusted annually to account for any increase in average weekly earnings.
The minimum parental leave payment rate for self-employed parents will increase from $227.00 to $231.50 gross per week, to reflect the minimum wage increase on 1 April this year.
The minimum rate for self-employed parents is equivalent to 10 hours worked at the adult minimum wage, which is now $23.15 per hour.
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.
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.
AI technology to sense pedestrians around forklifts is the centrepiece of a new safety commitment WorkSafe has accepted from a major player in the kiwifruit industry.
The commitment, known as an enforceable undertaking, was put forward by Trevelyan’s Pack and Cool Limited in Te Puke, where a worker was traumatically injured in April 2022. Trevelyan’s is New Zealand’s largest single-site kiwifruit and avocado packhouse.
The man was struck while walking behind a reversing forklift, and had his left leg and foot run over. When the driver moved the forklift forward, he ran over the victim’s foot a second time. Ultimately, the victim’s lower left leg could not be saved, and it was amputated below the knee.
WorkSafe’s role is to influence businesses to meet their responsibilities to keep people healthy and safe. Our investigation found Trevelyan’s traffic management plan for the site was deficient, with forklifts and workers clearly not kept separate.
“Forklifts are essential to the kiwifruit industry and we expect businesses to manage their risks. Where they don’t, we will take action. Harvest season brings heightened risks from more product movement, less space to work, and more people in close quarters,” says WorkSafe’s regulatory support manager, Catalijne Pille.
In response to the incident, Trevelyan’s has committed to delivering a series of safety initiatives worth half a million dollars, including:
An AI pedestrian detection system fitted to 40 forklifts to improve safety and reduce risks.
Collaborating with the kiwifruit industry to spread the uptake of this technology and enhance safety.
Investing in training to improve health and safety competency across the business.
Reparation to the victim.
Funding for the Amputee Society of Waikato, Bay of Plenty and Districts.
Funding scholarships for the Health and Safety Association of New Zealand.
“Artificial intelligence brings significant possibilities for health and safety innovation. In this case, it’s about using algorithms and sensors to detect nearby pedestrians to reduce the risk of accidents and enhance workplace safety. We hope to see the benefits extend beyond the kiwifruit industry,” says WorkSafe’s Catalijne Pille.
As a result of the undertaking, WorkSafe’s charges against Trevelyan’s were discontinued. WorkSafe will regularly monitor progress on the agreed initiatives and can resume prosecution if necessary.
“Trevelyan’s investment to improve safety in their workplace is the preferred solution in this case. It demonstrates a substantial commitment to health and safety which may not have been achieved by prosecution.”
My life changed in one second on 25 April 2022. Since then, everyday tasks like dressing, showering, and walking have become challenging. My mental health has been up and down, it is physically difficult for me to play with my grandchildren, and sometimes even lying in bed is painful. My injury had a very bad effect on my retirement savings, as I’d planned to work for another five or ten years, but I’ve not been able to. I didn’t want to tell my story in court, but I’m pleased to see Trevelyan’s invest in making its site safer as I do not want anybody else to go through my experience.
Statement from Trevelyan’s Pack and Cool Limited managing director James Trevelyan
Trevelyan’s Pack and Cool Limited acknowledges the importance of learning from the accident and is committed to ensuring that such incidents do not reoccur.
Trevelyan’s Pack and Cool Limited is not only committed to investing in the health and safety of our workforce and the broader industry, but also in actively supporting the injured person and his family. We are dedicated to building robust capability in the New Zealand workforce, with a specific focus on the prevention of forklift accidents.
An example of implementing improvements includes installing artificial intelligence (AI) equipment in our forklifts. While this AI system is in use in other industries across New Zealand, Trevelyan’s is the first within the kiwifruit industry to have trialled and fitted the equipment to its fleet. As part of our EU commitment, we have also funded another 60 pieces of equipment for other post-harvest facilities across the remainder of the industry.
Trevelyan’s Pack & Cool Limited places the highest priority on the health and well-being of all Trevelyan’s staff, growers, suppliers, and community. This commitment not only reflects our obligations under the Health & Safety at Work Act 2015 but is also a testament to our genuine concern for each individual associated with us.
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.
Join us for an online Q&A session with our Chief Executive Steve Haszard to discuss our refreshed strategy and to answer your questions.
Our refreshed strategy has a focus on making a difference to the most serious harm in New Zealand workplaces. It defines the wider health and safety at work system (te aronga matua) and reflects our role in the system (kawa), how we will undertake that role (tikanga), where we will focus our effort (kaupapa), and how we will measure our impact (mātauranga).
Join our Chief Executive Steve Haszard on Wednesday 12 June 2024 from 3–4pm for this online Q&A session.
If you’d like to ask a question on the day, make sure you join the session on a laptop or desktop. We’ve found that there is limited function on mobile phones and using the web browser Safari. If you find you cannot ask a question, try a different browser or you can emailcommunications@worksafe.govt.nz.
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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.