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.
E tū is disappointed with NZ Post’s decision to move mail delivery into the parcel network, which will mean workers are moved to a contracting model.
NZ Post announced the details of the plan today, which is a response to declining mail volumes.
Postal worker and E tū delegate in Dunedin, Terry Howells, says workers are upset by the changes.
“I think it’s the end of an era for post itself, and people are quite downtrodden about it,” Terry says.
“A lot of posties took this job because it’s a good lifestyle, and this will be a major disruption to that. I can’t see it working in the long run.
“Being directly employed comes with all the employee benefits we’ve built up over time. I don’t think contractors are treated well here at all, the contracts are tough. Going into that side would be horrible, really. We can see it leading to exploitation, particularly for migrants.”
Terry says that affected workers are still looking for answers.
“It’s difficult to know what the next steps will be, we need more concrete information. The company needs to be a bit more upfront on what direction they’re going in. That’s a crucial part of the transition ahead.”
E tū Negotiation Specialist, Joe Gallagher, says NZ Post contracting out mail delivery will make them disconnected from the community.
“Having directly employed posties not only gives workers better protections, it also means NZ Post has a real stake in all parts of the delivery of the services,” Joe says.
“Passing the buck to a network of contractors means we’ll see a ‘race to the bottom’ with perverse incentives to make the most money, not deliver the best service. We see examples of this across many different industries.
“Mail delivery volume might be declining, but a robust network remains a core part of our society’s infrastructure.”
Joe says that while the union continues to oppose these changes, E tū and NZ Post are both committed to a ‘just transition’ for affected workers.
“The good news is that due to a long history of strong union membership, NZ Post workers are in a better position to shape their own future and all parties can work together to minimise the harm to affected workers.
“When people lose their jobs, or their jobs become more precarious, it affects the whole community. We’ve been proud of the work we have done in the past to ensure workers who are affected by changes in the post system are on the best footing possible, for example by helping them into new work through the E tū Job Match programme.”
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.
GDP numbers released today show that the economy shrank into a technical recession with the economy declining by -0.1% in the December 2023 quarter, following a -0.3% decline in the September quarter. GDP per capita also fell by 0.7%, continuing its recent run of declines.
7 out of 16 economic sectors saw annual declines in output, including most of the goods producing sectors like manufacturing and construction. Public administration increased its output, caused mainly by the general election during this period. On a quarterly basis, New Zealand now finds itself alongside the UK in having negative growth. Australia (+0.2%), the US (+0.8%), Japan (+0.1%), and the OECD average (+0.3%) all saw positive economic growth.
“This data confirms what many other economic indicators have been showing – that the economy is slowing, and growth is well below its historical trend. That should worry working people, as lower economic growth generally leads to higher unemployment and lower wage growth” said CTU Economist Craig Renney.
“The data illustrates the current weakness in the economy. While we shouldn’t over interpret one datapoint, the broader economic data points to a stronger case for some timely investment in the economy. This would both tackle our chronic infrastructure gap, enhance our low productivity, and both support business investment and boost flagging demand. The worst way to achieve that would be with tax cuts.
“This should act as a wake-up call about our economic direction. Those countries with an active economic plan based on investment – like the US – are seeing strong economic growth and employment growth. This Government is heading in the opposite economic direction. Central government expenditure in New Zealand fell -2.2% on average across the past year, so excuses about government spending shouldn’t hold any weight.
“This is not the time for cuts, it’s the time for investment that will benefit all New Zealanders – not just a select few,” said Renney.
This technical bulletin is aimed at persons conducting a business or undertaking (PCBU) who design, manufacture, supply or use cabinets constructed to meet the requirements of AS 1940, and compliance certifiers who encounter these cabinets in the course of their duties.
Background
Flammable liquids need to be stored correctly and safely. If they are not, they can pose a risk to workers and others in the workplace.
Regulations 11.11 and 11.29 of the Health and Safety at Work (Hazardous Substances) Regulations 2017 prescribe requirements for the storage of flammable liquids (classes 3.1A-C) in cabinets. A PCBU should have documentation that the cabinet complies with the relevant requirements of one of the standards specified in these regulations. This could include an assessment by a relevant duty holder (for example, designer, manufacturer, importer, supplier or PCBU with management or control of the workplace) detailing how the cabinet complies with the standard.
A type of compliant cabinet that is commonly used in workplaces is one constructed and installed to sections 4.9.2 and 4.9.5 (and 4.9.7 for regulation 11.29 cabinets) of AS 1940:2017 – The storage and handling of flammable and combustible liquids (AS 1940).
Cabinets that have been constructed to the previous AS 1940:2004 standard will also comply with AS 1940:2017, as the construction requirements for cabinets in section 4.9.2 are the same.
What is the issue?
A cabinet constructed to section 4.9.2 of AS 1940 is required to be marked to verify compliance with the standard.
WorkSafe has become aware of cabinets marked as compliant that appear to be non-compliant with the construction requirements of section 4.9.2.
To help PCBUs make sure that their flammable liquid cabinets comply with section 4.9.2 of AS 1940, this technical bulletin provides clarity on these areas of concern:
secondary containment
construction materials
self-closing doors
door handles
perforated shelving.
What does AS 1940 require?
Secondary containment
The space under the lowest shelf of the cabinet acts as the secondary containment area for the flammable liquids contained within the cabinet. This space must be at least 150 mm deep. The measurement does not include a 40 mm air space that must exist between the double-walled sheet steel construction.
The cabinet must be constructed so this secondary containment area cannot be used as part of the storage space of the cabinet.
The cabinet must be constructed so all leakage flows into this area.
PCBUs must make sure their cabinets remain liquid-tight. This may involve testing of the cabinet’s secondary containment.
Construction materials
Any components critical to the cabinet’s structural integrity must not melt at temperatures less than 850°C.
This includes any hinges, handles and the locking mechanism, depending on the design of the cabinet, as these components are critical to its structural integrity. PCBUs need to determine if these components of their cabinets meet this requirement.
Aluminium (including rivets) and plastics cannot be used for any component, or part of a component, critical to the cabinet’s structural integrity.
Self-closing doors
Cabinet doors must be self-closing, close-fitting and held shut automatically by catches at two or more points.
The doors must close fully and not remain partially open. If a cabinet has two doors, and one side has a lip, then the doors must automatically close in the right order so both doors close fully, and the catch engages. If the doors close out of order one door can remain partially open. This means that the locking mechanism will not work properly.
There must be no manual intervention needed to make sure the doors close in the right order and the catch of the locking mechanism engages.
Linear actuators can be used so the cabinet doors close in the right order.
If the cabinet is equipped with a device to hold the doors open, the doors must close as soon as the ambient temperature exceeds 80°C.
Door handles
A 40 mm air space between the double-walled sheet steel construction is required, and this space should be maintained to meet the construction requirements. Placing the handles or other devices within the 40mm air space may create a heat transfer bridge between the inner and outer metal walls of the cabinet door.
Recessed door handles may only be used under AS 1940 if there is a 40 mm air space between the inner cabinet wall and the inside of the recessed door handle.
Perforated shelving
Shelves must be perforated to allow free air movement within the cabinet.
The standard does not provide a definition of perforated, or how many holes within the cabinet shelf are required. Typically, a compliant cabinet will have multiple holes on each shelf. Any gap between the shelf and the cabinet walls or door will also assist with the free movement of air.
Maintenance and use
Under section 36 of the Health and Safety at Work Act 2015, PCBUs have a primary duty of care to ensure the health and safety of workers, which includes the provision and maintenance of safe plant and structures. This duty of care extends to the maintenance of storage cabinets used to hold flammable liquids.
You need to make sure the cabinet continues to meet the requirements of AS 1940 and that no changes or alterations, including wear and tear from day-to-day use, impact the compliance with the standard (for example, preventing the cabinet door to self-close).
Other common areas to check regularly as part of maintenance is whether the cabinet locks properly and that the secondary containment area is not used for storage (that is, the lower shelf has not been removed).
Compliance certification
If a hazardous substance location has been established and requires certification, then a compliance certifier should assess the marking on the cabinet and whether the cabinet has been constructed to section 4.9.2 of AS 1940. This should include assessing whether the cabinet has been properly maintained and that it continues to comply with the relevant requirements of the standard.
A compliance certifier should not assume compliance of the cabinet. For example, they may wish to check that the self-closing doors do close in the right order and catch correctly. A certifier may also require a PCBU to provide evidence that the cabinet construction complies with the relevant requirements.
Further information
For further information regarding your cabinet, contact the supplier of your cabinet or your compliance certifier. PCBUs who are concerned that their cabinet does not meet the construction requirements of section 4.9.2 of AS 1940 should consider contacting the manufacturer and/or supplier of their cabinet.
Download
Technical bulletin: Clarification on construction requirements of flammable liquid cabinets designed to comply with AS 1940(PDF 167 KB)
The NZ Council of Trade Unions will be supporting Uber drivers as their legal fight for basic workers’ rights, including even being paid the minimum wage, heads to the Court of Appeal.
Drivers are holding a rally outside the Court of Appeal in Wellington at 9am today, as the court begins its appeal against the Employment Court verdict in 2022 (in a case taken jointly by FIRST Union and E tū) that four drivers were permanent employees, not contractors.
“Uber drivers have been the denied the fundamental rights that most of us are able to take for granted – they aren’t even being paid the minimum wage. It’s wrong and needs to change,” said Acting CTU President Rachel Mackintosh.
“As a country we must support the drivers in their fight against a multinational company that is trampling on their legal employment rights.
“This case is relevant not only to gig or platform workers, but to all working people. All workers who have been misclassified as contractors have the right to test their employment status in court, and it should worry us all that this Government is threatening to take that right away.
“The distinction between an employee, who works for an employer under their control and direction, and a genuinely independent contractor (who carries out a business in their own right) is an essential one that the court has an important role in upholding.
“The difference between a contractor and employee is one of substance. The uber drivers who are at the heart of this case are, in substance, employees. They are not independent contractors; they have no ability to bargain contracts and are significantly under the control of the platform provider, who dictates their pay and punishes them if they try and take control of their hours.
“Gig economy workers exist in an employment context that heightens their vulnerability to unfair treatment. That’s why we need to reform employment law to protect their rights, not undermine them as this Government has threatened,” said Mackintosh.
E tū, the union for journalists and media workers in Aotearoa, is today launching a campaign to stop the proposed changes at TVNZ.
The Save Our Stories campaign is a response to last week’s announcement of a proposal for significant cuts across the workforce and the programmes produced, including cutting the shows Fair Go and Sunday, gutting Re: News, and cutting the Midday and Tonight bulletins.
E tū Negotiation Specialist, Michael Wood, says the Save Our Stories campaign is about everyone coming together to protect the media platform.
“We’re bringing together workers, viewers, and supporters to remind TVNZ of their purpose and responsibilities. TVNZ isn’t just some business, it’s a vital part of our society and Kiwis need a strong TVNZ to tell Aotearoa’s stories and hold power to account.
“This is about everyone – every single New Zealander is a stakeholder in this, so we invite everybody who wants to build and protect a strong media landscape to support the campaign.”
The campaign has been launched with a video featuring people from across TVNZ’s workforce, and an open letter.
“So many people have reached out to our union to show their support for TVNZ workers and ask how they can help. From prominent public figures, to people whose lives have been changed thanks to TVNZ’s coverage, to dedicated viewers who don’t want to see their favourite shows get the axe.
“These people can help by signing the open letter, sharing our video, and sending the message to decision-makers that our media is worth protecting.”
“The Minister appeared to endorse proposals that would strip workers of essential basic workplace protections,” said Acting CTU President Rachel Mackintosh.
“The union movement wishes to speak urgently with the Minister about these remarks which follows the indecent haste to scrap Fair Pay Agreements and reinstate 90-day trials.
“It is particularly concerning to hear that the Minister wants to review health and safety law. New Zealand has an appalling health and safety record, with approximately 17 workers killed as a consequence of their work every week. Every 15 minutes a worker suffers an injury that requires more than a week away from work. The lessons from Pike River tell us that we need stronger health and safety law, not lighter touch regulation. Nobody gains from that.
“The Minister also highlighted contractors as an area where ‘certainty’ was needed. Right now, workers can go to court to show that they are employees – which is what Uber workers did. The Minister and the National/ACT coalition agreement appears to want to take away that right. This would strip essential protections such as leave, sickness, ACC, and more from thousands of the most vulnerable workers.
“We’re also appalled to hear the Minister complaining about the advances that have been made for workers in recent years. Increasing the minimum wage occurred while we had record-low unemployment. Sick leave entitlement increased to match Australia. Paid Parental Leave increased to 26 weeks. These are all good things for workers, and their families. They should be celebrated, not used as reasons for complaint.
“The Minister set out a vision for the economy built on flexibility – the same language was used in the early 1990s by Jim Bolger and Ruth Richardson to strip workers of so many protections.
“If she has her way, this flexibility will come from working people losing their rights, their health, and their terms and conditions of employment. This isn’t a vision for a better economy, it’s a prescription for the kind of low wage, low productivity economy we should be leaving behind. The Minister has recently refused to engage with workers representatives, we would urge her to reconsider.” “We will be outlining our concerns to the Minister, and requesting a discussion on her policy agenda and how it will impact working people.”
Changes to taxation for landlords have blown out in cost and taken the Government’s tax plans with them said CTU Economist and Director of Policy Craig Renney. “At the election, the National party claimed that the return of interest deductibility would cost $2.1bn. Now we discover it’s going to cost nearly $800m more”.
“This Government appears to have its priorities all wrong. It is committed to fattening the wallets of landlords, but it won’t commit to feeding hungry children in schools. There is no economic evidence that shows this tax cut will lead to lower rents. But there is plenty of evidence that nearly $3bn could make a huge difference to the state housing waitlist, or to those seeing their benefits cut in real terms”.
Renney said “This adds to the problems that National had in opposition making its tax plan add up. This blow-out for landlords needs to be added to the $1.35bn missing from welfare indexation savings. The potential $3bn from foreign buyers has gone, and the cost of indexing income tax changes is likely to be much higher than forecast.”
“This will likely mean deeper cuts to essential public services to pay for this plan. That in turn will impact every community around New Zealand. These are huge sums of money that could be invested in those with the very highest needs. Instead, it’s simply going to inflate the housing market again and force first home buyers to the sidelines”.
Renney said “It’s not too late to change. This tax change will go through the House very soon, but the Government could withdraw the bill and explain to New Zealanders why nearly $3bn needs to be spent in this way, instead of rebuilding the 350 schools that have been paused. It’s time to change track and invest in New Zealand, not landlords.
NZ Council of Trade Unions Secretary Melissa Ansell-Bridges is marking International Women’s Day by calling on the Government to implement mandatory ethnic and gender pay gap reporting and follow Australia’s lead who recently released their first round of mandatory reporting.
In 2023, the National Advisory Council on the Employment of Women, acting as New Zealand’s Pay Transparency Advisory Group, recommended that a mandatory reporting system be adopted to help lower the ethnic and gender pay gap and increase transparency. The previous Government agreed to introduce legislation, but this did not occur before the election.
A mandatory system was supported at the time by the National Party and employer organisations such as the EMA.
“The Government needs to live up to their words in opposition and introduce legislation that requires pay gap reporting,” said Ansell-Bridges.
“We know that greater pay transparency through mandatory reporting will empower women and all working people to improve their pay.
“While the gender pay gap in Aotearoa New Zealand has fallen significantly since 1998, it is unacceptable that women are still paid 8.6% less than men. The gender pay gap for wāhine Māori, Pacific and Asian women, and disabled women is significantly higher.
“No one in New Zealand should suffer the indignity of pay discrimination due to their gender or ethnicity.
“Government has a chance to significantly improve the standard of living for women across the country by following expert advice and Australia’s lead. They need to take it,” said Ansell-Bridges.