E tū, the biggest private sector union in Aotearoa New Zealand, is shocked to learn that the National Party’s coalition agreement with ACT would see planned tax breaks for landlords brought forward, costing at least $900 million according to analysis by the Council of Trade Unions.
The news comes as the new National-led Government is announcing more details about their fiscal plan. E tū urges the Government to prioritise workers and their communities, including essential workers in care and support.
One area that needs urgent attention is funding for the care and support pay equity claim. Care and support workers have already waited too long for proper recognition of their skills.
Caregiver and Convenor of the E tū Community Support Industry Council, Marianne Bishop, says funding the sector properly is long overdue.
“It’s stupid that the sector has always been so underfunded,” Marianne says.
“People pay taxes their whole lives, but then have to fight for the care they need when they are older.
“The new Government has some important decisions to make about their priorities. Landlords are not doing it tough, but care and support workers certainly are.
“We have only had up to a 3% pay rise in the last year, with some of us getting nothing, despite the cost of living increasing so much more than that. Everyone is really struggling, especially our colleagues in home support who have to cover their own vehicle costs and other expenses.”
Marianne says the Government needs to fund pay equity to ensure the care sector can function properly in the future.
“We have an ageing population and an ageing workforce. What’s going to happen in 10, or 20 years’ time? How are going to attract new people into the industry if they can’t earn a living? It’s just not going to work.
“We won the first settlement under a National Government in 2017, now it’s time for them to step up again. They keep saying that people voted for change, well now it’s time to really change things for people who need care and those who provide it.”
E tū, the biggest private sector union in Aotearoa New Zealand, says the new National-led Government’s 100-day plan announcement that they will repeal the legislation for Fair Pay Agreements is a giant step backwards.
Fair Pay Agreements were set up under the previous Government as a mechanism for sector-wide collective bargaining, establishing new minimum pay and conditions that would apply to every covered worker. The law provides full democratic participation from both workers and employers and is similar to sector-wide bargaining processes used around the world, such as Australia’s modern awards.
Security guard Rosey Ngakopu, who has been a key member leader in E tū’s campaign for Fair Pay Agreements, is hugely disappointed.
“It just feels like a slap in the face, it’s completely disrespectful and stupid to cancel our Fair Pay Agreements,” Rosey says.
“Us security guards and our brothers and sisters in cleaning really need improvement in our industries. That’s what Fair Pay Agreements are all about. We need better wages, we need better job protection, and we need proper health and safety. They’ve taken it all away.”
“That’s just the National Party for you though, that’s what they do. Whatever we are able to win, they’ll just rip it away.”
E tū National Secretary Rachel Mackintosh says the decision will mean workers who have initiated Fair Pay Agreements are missing out on a huge opportunity.
“Fair Pay Agreements were the best improvement to employment law in decades,” Rachel says.
“The mechanism was carefully developed to give workers a real chance at finally winning better pay and conditions. E tū members in cleaning and security have long faced a working life of low wages and inadequate conditions, especially relating to key issues like health and safety, job security, and opportunities for career progression.
“We know that low wages are the key driver of inequality, and workers in industries like cleaning and security suffer the consequences. By removing Fair Pay Agreements before the first ones have even been negotiated, the Government is attacking the most vulnerable people in Aotearoa’s workforce.”
Rachel says this is a poor start for the new Government.
“This decision adds to many more that demonstrate the Government’s backwards priorities. They have announced the return of 90-day trials for all, despite evidence they threaten job security without any meaningful benefit to business or job opportunities.
Further, Rachel says the proposal to remove peoples’ rights to challenge their employment status as contractors in the Employment Court will lock in exploitation and severely constrain the access to justice that is fundamental to our democracy.
“E tū is also deeply concerned about National’s attack on working people on a range of fronts, including through its tax policy. It is galling that this government will remove our world-leading smokefree initiative to help pay for tax cuts for landlords and those already well-off.”
In light of the Deputy Prime Minister Winston Peters’ recent comments about the media, a group of journalists who serve as E tū delegates say these claims are misinformed.
Mr Peters has claimed the Public Interest Journalism Fund was a government “bribe” – which is a well-known but incorrect claim made amongst those who peddle conspiracy theories. He has further doubled down on that by saying he is at “war” with the media. We strongly reject claims of a bribe.
Journalism was just one of many industries that got government help as a result of the Covid-19 pandemic. There was never any expectation tied to the Public Interest Journalism funding to cover any one topic, or in any one way, and there were clear and well-publicised conditions for the work produced.
While journalists strongly reject Mr Peters’ claims, we will all continue to cover him, New Zealand First, and all parties in an unbiased way. The media has an important role to play in a democracy, holding politicians to account and acting as a watchdog for the community.
Journalists at the front line doing their job have faced strong and sometimes unusual pressures recently from people acting on strong views, to limit reporting or the how stories are told.
By spreading misinformation and supporting conspiracy theories, Mr Peters is placing journalists at risk. We urge Mr Peters, as well as other senior politicians and public figures, to support and protect our independent media, not attack it.
The Post and Stuff delegate Tom Hunt said it was ludicrous to label PIJF a bribe.
“Many of the PIJF journalists were also union members and were bound by E tū’s journalistic ethics, which enshrines editorial independence from outside influence.
“The Media Council also has principles saying publications should be ‘bound at all times by accuracy, fairness and balance’. Furthermore, media companies have their own standards which enshrine independence.
“Taking aim at these journalists who are now, or will soon, be facing the end of PIJF funding is a cynical cheap shot.”
RNZ delegate Phil Pennington said RNZ journalists strive every day to meet the demands of their stringent editorial standards, standards shared with many other media organisations.
“Our journalists’ daily work helps support and protect an environment of free debate and wide-ranging input, and we hope and trust all our political leaders’ efforts do, too.”
Another experienced journalist told E tū that Winston Peters’ attack on the media was reminiscent of how Sir Robert Muldoon behaved. He attacked unionists and journalists, infamously refusing to allow journalist and cartoonist Tom Scott to attend press conferences.
The order was made by the Employment Relations Authority (ERA) in a recent determination. This follows an earlier Labour Inspectorate investigation into the matter.
Businessman Vijay Singh, the sole shareholder and director of Laxmi Narayan Restaurant Ltd, trading as Karfa Moroccan Cuisine, was also ordered to pay a further $11,250 in penalties to the Crown.
He was found to have unlawfully deducted money from his restaurant manager’s wages over a 2-year period, underpaid him, failed to pay him for holidays and leave, and under-recorded the hours the employee worked in exchange for having helped him obtain a work visa.
This resulted in the employee regularly receiving payment for fewer hours than he had worked and he was working up to 25 hours a week for which he wasn’t being paid.
The ERA ordered Laxmi Narayan Restaurant Ltd to pay the employee:
minimum wage arrears of $19,320.53
unlawful deductions of $3,865.79
holiday and leave arrears of $3,674.07
interest of $2,019.27.
Laxmi Narayan Restaurant Ltd is ordered to pay penalties of $17,000 while Mr Singh must pay a penalty of $5,500. Half the penalty amounts are to be paid to the employee and the other half to the Crown. If Laxmi Narayan Restaurant Ltd is unable to pay, Mr Singh is liable for both amounts.
New analysis has shown the cost of interest deductibility changes will put a further $1 billion in the pockets of landlords, said NZCTU Economist and Director of Policy Craig Renney.
“We have looked at the details of the National Party & ACT coalition agreement, and our investigation demonstrates that the cost of returning interest deductibility will rise from $2.1 billion to $3 billion. Once behavioural impacts are added, this figure would likely exceed $1bn across the forecast period. This is a direct effect of the changes to the policy which bring in interest deductibility earlier and faster than previously suggested”.
This is set out in table 1 below:
Table 1: Mortgage Interest Deductibility
Programme
2023/24
2024/25
2025/26
2026/27
2027/28
Current law
50%
25%
0%
0%
0%
National Party Proposal
50%
50%
75%
100%
100%
Coalition Agreement
60%
80%
100%
100%
100%
Craig Renney said, “Crucially, this change would be retrospective – meaning that landlords would be able to claim 60% interest deductibility from 1 April 2023. That means that they will be receiving a rebate on payments already made. Landlords will be cut a cheque from government, but tenants will not benefit from the rental payments they have already made. That’s hugely unfair and simply rewards landlords for nothing.
“This $1 billion additional cost will pile further pressure on a budget that already is having to cope with the $3 billion loss of the foreign buyer tax. This is money that will need to be found from further deep cuts to public services, more debt, or higher taxes – such as those on the new smokers National is hoping pick up the habit. It’s an enormous and unnecessary expense. This is money that could be used to support free prescriptions or half-price public transport, both of which are being scrapped.”
These numbers have been independently assessed by Terry Baucher, Tax Specialist at Baucher Consulting.
Baucher said “It is a highly unusual move to make retrospective tax changes like this. I can’t recall a tax measure like this being brought in after an election with retrospective effect.”
Renney said, “Nobody voted for this change. ACT’s manifesto had Interest rate deductibility changes starting in 2024, as did the National Party Manifesto. There is no mandate for this change. These changes are likely to put further pressure on the housing market and will advantage landlords against first home buyers. There is no economic reason why you would make this change in the way they have.
“Budgets are about choices, and we are going to have a mini-budget in December 2024. The incoming government could have used this money to pay the pay parity bill for Early Childhood teachers, which would cost just a quarter of this cost-blow out. Instead, landlords are getting an early Christmas present while tenants and the users of public services get austerity and cuts.
“National and ACT should abandon this bad plan and instead use the $3 billion to invest in communities and public services across New Zealand. The value of National’s tax package to middle and low-income households has already been weakened with the loss of working-for-families tax credits. This change simply skews the tax advantages further to those with higher incomes.”
CTU analysis shows that over the forecast period to 2027/28 (the same period used by National in their Back Pocket Boost document) mortgage interest deductibility was due to bring in $3.516 billion in revenue.
With the changes National had proposed, this fell to $1.094 billion – a fall of $2.42 billion. This fall is different from the $2.1 billion set out in the Back Packet Boost report because it uses updated data from IRD (produced in November 2022) which revised the estimates of income.
When the additional changes factored in from the changes set out in the coalition agreement are provided, then the income generated falls to $512 million – a fall of $3 billion. This means that the deal has added a further $600 million to the cost of the changes.
Example
John owns one rental property with a fixed mortgage rate, earning the median rental payment of $580 a week. He earns $80,000 a year in income from his other employment. This gives him a combined income of $110,160.
Over the five-year period from April 2023, the coalition agreement proposals would mean that John had $411,617 in taxable income, against $524,709 on current law. This would mean that they pay $40,385 less in tax over 5 years, before any additional impact of changing the threshold rates for income tax.
The difference between the coalition deal and the National Party proposal adds a further $35 a week in benefit for John.
John’s tenant sees no benefit from these proposals.
Understand the different between casual, fixed-term and part-time employees
‘Casual’ workers and fixed-term employees are both different to part-time workers, and sometimes people mix all these terms up.
A ‘casual’ employee isn’t defined in law but usually refers to a situation where the employee has no guaranteed hours of work, no regular pattern of work, and no ongoing expectation of employment. They only work when it suits you both. If you hire a casual worker, you must make this clear in their employment agreement.
A fixed-term (temporary) employee’s employment will end on a specified date or when a particular event occurs. A fixed-term employee might be someone who is brought in to replace another employee on parental leave, to cover a seasonal peak or to complete a project. There must be a genuine reason for the fixed term.
Whether you’re considered to be part-time or full-time depends on how many hours you have to work. Employment law doesn’t define what full-time or part-time work is, but full-time work is often considered to be around 35 to 40 hours a week.
Employment rights and responsibilities apply to all employees, but the way in which annual holidays, sick and bereavement leave are applied can vary.
For all types of employees, it’s important to keep accurate records of wage and time, and holidays and leave so that you can make sure leave entitlements can be correctly calculated.
The New Zealand Council of Trade Unions has today provided its briefing for the incoming government.
NZCTU President Richard Wagstaff said since 2017, the country has made significant progress on a range of economic and social issues.
“Under the last Government, many measures improved. Child poverty has fallen. Unemployment reached record lows. The minimum wage increased by 44 percent. Benefits were increased and linked to wages rather than inflation. Paid parental leave was extended to 26 weeks, and sick leave was doubled. All of these changes helped to deliver a more equitable Aotearoa and helped to ensure that some of the poorest New Zealanders had a real boost in their quality of life. We hope that the progress made to date continues under this new government.
“New Zealand needs to become the best country in the world to be a worker, by creating good work, and building a more productive, sustainable, and inclusive economy.”
To continue making progress the incoming government should prioritise action in areas such as:
Work to eliminate the barriers that disadvantage kaimahi Māori
Increasing the minimum wage to the living wage
Continue working to improve pay equity
Reform the Holidays Act
Criminalising wage theft
Introduce corporate manslaughter legislation
Eliminate migrant labour exploitation
Ratify all International Labour Organization fundamental conventions
Increase the capacity of New Zealand’s labour and health and safety regulators
Support vocational education and workforce development
Continue to plan for just transitions
Rebalancing the tax system
Increase the supply of affordable housing
Establish a Ministry of Green Works to close our infrastructure gap
Improve competition in key sectors
“There are also a range of areas where the CTU believes that the incoming governments agenda could do with fresh ideas. Reversing progress on honouring Te Tiriti o Waitangi; repealing the Fair Pay Agreements Act; reinstating 90-day trials for all businesses; continuing to misclassify employees as contractors; stopping further work on social income insurance; cutting public sector funding; and repealing the Reserve Bank’s employment mandate are not going to help.
“If implemented, these policies will take New Zealand backwards. They represent outdated ideas that have been proven not to work.
“This briefing is just the start of the work that the incoming government will need to complete. There is much to do, and every day that action is delayed in these areas real workers and families suffer across New Zealand. The NZCTU wants to engage with government urgently on these issues and more.
“We passionately believe in making New Zealand the best country in the world to be a worker through the creation of good work. Regardless of the differences between the trade union movement and the political parties that comprise the new government, we stand ready to work constructively with government, delivering positive policies that will make this aspiration a reality.”
November 26 marks the day women effectively begin working for free, say the New Zealand Council of Trade Unions.
NZCTU National Secretary Melissa Ansell-Bridges said that despite continued wage growth and low unemployment, the pay gap for women remains unacceptable.
“The labour market data released by Statistics NZ shows that we still have a lot of progress to make. The statistics are even worse when ethnicity is factored in. The incoming government must prioritise settling pay equity settlements to close these gaps.”
NZEI National Secretary Stephanie Mills said fair pay for early childhood teachers must be recognised and funded with urgency.
“Women in education have fought over decades to have their mahi and contribution to the learning and growth of our youngest citizens recognised and properly valued. We’ve seen significant pay equity settlements for school support staff, but there is still work to do. The settlement of more than 70 percent pay increases for kaiārahi i te reo shows the even more significant under-valuation of Māori and Pasifika women. “
Melissa Woolley, Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi said it was essential that progress continued to be made.
“We must keep up the momentum – thousands of care and support workers are already seeing their pay being eroded because of the failure to progress a fresh pay equity deal. They do a critical job of supporting people every day so they can live with dignity.
“Thousands of community social workers are also facing long delays just getting paid their pay equity payments that have already been agreed. So, our message to the incoming government is that in a cost-of-living crisis it is even more important that there is no backsliding. Let’s keep making progress.”
New Zealand Nurses Organisation President Anne Daniels said the health workforce were trying to reverse decades of historic sexism.
“It has been 130 years since women received the vote in New Zealand, but in terms of pay we are still treated like second class citizens. It is time for this inequity to stop; an inequity especially felt by Māori and Pasifika women.”
WorkSafe New Zealand says an incident where a worker was seriously injured underlines the importance of training staff to keep them safe.
On 15 November 2021 a staff member with the Auckland International Airport Limited (AIAL) wildlife team was monitoring geese near the airport’s runways. The victim fired a cartridge from a pyrotechnic launcher toward the geese from the open driver’s side window of their stationary work vehicle. As a result of firing the launcher, the victim sustained serious harm, including laceration to their right-hand palm and loss of two of their fingertips on their right hand.
WorkSafe investigated the incident and found the victim did not receive adequate training on the safe use of the launcher and storage and handling of the cartridges. WorkSafe also found standard operating procedures relating to pyrotechnics were not as they should be.
“The way training was carried out was concerning. Training can be ‘watered down’ if it is simply passed on by person to person and not directly linked back to what the best practice states and the law requires.” says WorkSafe’s National Manager Investigations Catalijne Pille.
“This matter highlights that businesses and organisations need to pay adequate attention to the use of equipment or keeping across training regimes. Passing down knowledge without having check-ins can mean gaps in information or that training is not aligned with best practice.”
Since the incident the PCBU has engaged with an external business to carry out training and reports increased satisfaction with the new process.
AIAL has entered into an Enforceable Undertaking with WorkSafe. This requires the PCBU to raise the health and safety standard in their workplace, wider industry and local community.
This Enforceable Undertaking includes:
Financial amends to the victim.
The implementation of a new suite of controls to greatly minimize risk to workers.
The development and implementation of a wildlife working group with key external stakeholders.
The development and implementation of a national wildlife hazards conference.
Funding to support organisations delivering mental health services in the South Auckland area.
Through this Enforceable Undertaking a Wildlife Working Group will be established with a focus on minimising wildlife risks. This will be supported by the creation of a National Annual Wildlife Hazards conference and a sponsorship programme, focusing on safety and well-being improvements.
“We all have a part to play in New Zealand’s health and safety system and Auckland International Airport Limited has taken up the opportunity to drive health and safety change within the industry.”
WorkSafe will monitor compliance and progress of the terms of the Enforceable Undertaking which have been agreed to.
Statement from Chloe Surridge, Chief Operations Officer at Auckland Airport
Auckland Airport takes ownership for the events that led to one of our wildlife team members suffering a significant injury and we are deeply sorry for the impact this incident has had on the health and wellbeing of our team member and their family.
While birds are a threat to aircraft safety, it is extremely important any tactics used to scare them don’t risk causing anyone personal harm. That wasn’t the case on this occasion, and we have worked closely alongside WorkSafe in full support of its investigation. We have also made significant improvements to ensure the future health, safety and wellbeing of our wildlife rangers, including more specialised training, changes in operating procedures and improvements in record keeping.
The process of the enforceable undertaking has not only created positive change across our own training and procedures, but will deliver long-lasting outcomes for health, safety and wellbeing at other airports and in our wider community.
The coalition agreements set out by the incoming government are nothing less than an attack on working Kiwis, their rights, and their needs said the New Zealand Council of Trade Unions.
NZCTU President Richard Wagstaff said, “The programme provided today shows that incoming Government is out of touch with the priorities of New Zealanders, and the challenges that they face.”
“It is telling that one of the first areas of work they have highlighted for action is the repeal of Fair Pay Agreements, and the reintroduction of 90-day trials. Both measures are designed to reduce security for workers, and to make it easier to fire employees.
“At a time of economic hardship for many in a cost-of-living crisis, this is simply appalling and insensitive.
“We are alarmed to hear that they wish to revise already weak health and safety regulations, especially in light of the high fatalities and serious injuries experienced in the workplace today. Removing the ability to challenge your employment status as a contractor will also mean that more workers face discrimination and exploitation.
“National’s tax plan now makes even less fiscal sense given that significant parts of it have been withdrawn due to the loss of the foreign buyers’ tax. This puts a $3 billion gap in their plans which is not addressed in the agreements. We are highly concerned that they will fill the gap with even deeper cuts to essential public services like schools and hospitals. The government should provide transparency urgently as to how that gap will be filled.
“The incoming Government makes clear in its documents that public services will be stripped further and faster than previously thought. At the same time new commitments are made for health and education without any new funding. This will mean deeper cuts to services all Kiwis rely upon. The commitment to part privatising elements of health and education should particularly concern New Zealanders.
“All New Zealanders should be deeply concerned at the attacks on Māori, highlighted by the proposals by to remove co-governance and bodies such as the Māori Health Authority. The proposal to Introduce a Treaty Principles Bill risks damaging community relations in New Zealand, and does nothing to support Māori. The government is a Treaty partner and should recognise and honour its agreements to the Treaty, rather than abdicate its responsibilities.
“These proposals confirm the worst fears of the New Zealand public about the incoming government. This programme will damage the lives of many middle- and low-income Kiwis and will set back progress on essential issues. Now is the time for all organisations around Aotearoa to unite to challenge this dangerous and damaging direction for the country.”
