National’s reverse Robin Hood tax plan enriches mega landlords by hundreds of millions

Source: Council of Trade Unions – CTU

New Zealand Council of Trade Unions analysis has revealed that a select group of landlords would be made tax-cut millionaires if Christopher Luxon’s landlord tax breaks are delivered after 14 October.

NZCTU Economist Craig Renney said “National waited until the very last moment to tell New Zealanders about their tax and fiscal plans. Day after day their numbers are being challenged.

“Now, we can reveal another harsh and unfair reality of their tax plan. ‘Mega-landlords’ would each likely make more than a million dollars extra from the removal of mortgage interest deductibility. Meanwhile, those who get disability benefits would see their incomes fall by more than $17,000 across the same period.

“Over five years, Nationals tax cuts would give $1.3 million to each of those landlords with more than 200 properties. This is based on the average benefit that landlords would get. Over five years this group of 346 mega-landlords would collectively gain nearly half a billion dollars in tax breaks.

“We know this windfall gain would not be passed on in lower rents, but would just further fatten the bank accounts of landlords.”

These figures have been independently verified by Terry Baucher, taxation specialist at Baucher Consulting.

Renney said “Christopher Luxon clearly wants to cut public services and will likely have to go further than planned because his foreign buyer’s tax and casino tax don’t add up. But National has not been upfront with voters about who gains from his tax policy. Last week we discovered that only 3,000 households would get the much claimed $250 a fortnight benefit. Now we discover that around 300 landlords would make millions.

“This is just another example of National’s reverse Robin Hood tax plan. We found out only last Friday that National plans to take $2 billion off those on benefits, including disabled people, to help fund its tax cuts. Our most marginalised would suffer while rich landlords get even richer.”

“National’s tax plan would overwhelmingly enrich those who already have significant assets – while harming those with the least.  National should scrap their unfair and unreliable tax plans which are balanced on the backs of the most vulnerable. They shouldn’t have to pay the price of National’s plan.”

Disabled community advocate Henrietta Bollinger said this policy was unaffordable for disabled people and their whānau.

“It completely fails to account for the reality of disability, the number of barriers we face in housing, education, employment, or healthcare that may lead us to rely on welfare. It completely fails to account for the hidden costs of disability.

“It also completely fails to recognise the financial pressures disabled people are already under. 
Instead of choosing to stand with around 24% of the population, their families, and communities National are choosing as a prospective governing party to stand with a privileged few.”

Systemic advocate Rhonda Swenson, who is on a supported living benefit, said the proposed changes will see disabled people falling further behind.

“For me, $17,000 is just under a year’s salary. It just makes it harder in terms of buying food and the basics.

“It makes me angry, it means they’re not valuing the people at the bottom. The disabled community deserves to be respected. [These cuts] will tip some people over the edge. They will make people more desperate.”

What is the size of tax cuts for Mega-Landlords under National’s tax plan?

National’s policy is to restore interest deductibility for rentals in 25% steps, until it is fully restored from 1 April 2026.


Background

24/25 25/26 26/27 27/28 28/29 Total
IR Costing $522,500,000 $617,500,000 $760,000,000 $760,000,000 $760,000,000 $3,420,000,000
Number of private rentals 510,000 510,000 510,000 510,000 510,000
Per rental $1,025 $1,211 $1,490 $1,490 $1,490 $6,706
Number of Mega-Landlords 346
Minimum rentals per Mega-Landlord 200
Average per Mega-Landlord $1,341,176
Mega-Landlords total tax cut $464,047,059

Beneficiaries Calculations

Year 2023/24 (Current) 2024/25 2025/26 2026/27 2027/28 2028/29
Rates Wages (FSM) 7.29% 6.53% 5.59% 4.40% 3.74% 3.19%
CPI (FSM) 6.03% 3.78% 2.47% 2.15% 2.01% 2.00%
Single 18+ years Wages $786.69 $838.06 $884.91 $923.84 $958.39 $994.72
CPI $816.43 $836.59 $854.58 $871.76 $889.19
Diff -$21.63 -$48.32 -$69.26 -$86.64 -$105.53 Total
Annual -$1,124.97 -$2,512.42 -$3,601.78 -$4,505.27 -$5,487.45 ($17,231.89)

Fence post ski death due to poor risk assessment

Source: Worksafe New Zealand

Risk assessment failures by NZSki have emerged as central to the death of an experienced skier at Coronet Peak four years ago.

60-year-old Anita Graf-Russell died of blunt force trauma, after colliding with a wooden fence post at the bottom of Sugar’s Run in September 2019. She was a very accomplished skier who could tackle various trails and runs without any difficulty. Ms Graf-Russell was a much-loved sister, friend, mother of four, and grandmother.

In August 2023, Judge Geoff Rea found the operator NZSki Limited guilty of breaching its health and safety obligations, and the company was sentenced today in the Queenstown District Court.

WorkSafe’s investigation uncovered a 2014 document from a ski patrol staffer titled Padding Hazard Register Grid. It refers to “28 fence posts, metal deer fencing and strainers in the area being very likely to be skied into at high speed. Several serious harm injuries have occurred already. Many near misses.” The staffer stated the risk score as 10 out of 10.

In his decision, Judge Rea ruled the company had been put on notice of serious safety issues concerning the fence, but had not conducted an adequate risk assessment for the fence at any stage since 2014.

“NZSKI created a risk by having a ski run sloping towards a water reservoir, but did not control the subsequent risk of the fence they installed around it. The bottom line is if you create a risk, you need to assess it and control it,” says WorkSafe’s area investigation manager, Steve Kelly.

“Skiing is obviously a leisure activity, but that doesn’t excuse operators from failing to manage risk. You might be seeing a hazard in front of you so often it’s commonplace. But taking the time to go through a proper risk assessment process makes sense, especially in seasonal industries.

“Operators like this have a duty of care to not only their employees but also members of public, who are paying customers. Businesses and organisations must not lose sight of that,” says Steve Kelly.

Background

  • NZSKI Limited was sentenced at Queenstown District Court on 10 October 2023.
  • A fine of $440,000 was imposed, and reparations of $130,000 ordered.
  • NZSKI was charged under sections 37(1), 48(1) and 2(c) of the Health and Safety at Work Act 2015
    • Being a PCBU who controls or manages a workplace, namely Coronet Peak Ski Field, Queenstown (the Ski Field), failed to ensure so far as was reasonably practicable, that the workplace was without risks to the health and safety of any person, including Anita Maureen Graf-Russell, and that failure exposed Anita Maureen Graf-Russell to a risk of serious injury or death, arising from collision with a fence post that was part of a double height deer fence surrounding a water reservoir, at the base of the Sugar’s Run ski trail, at the Ski Field.
  • The maximum penalty is a fine not exceeding $1.5 million.

Media contact details

For more information you can contact our Media Team using our media request form. Alternatively, you can:

Phone: 021 823 007 or

Email: media@worksafe.govt.nz

Te Whatu Ora must stop unjustly delaying pay equity for 65,000 care and support workers – E tū

Source: Etu Union

E tū, The Public Service Association Te Pūkenga Here Tikanga Mahi (PSA), and the New Zealand Nurses Organisation Tōpūtanga Tapuhi Kaitiaki o Aotearoa (NZNO) are calling on Te Whatu Ora to stop interfering in the Care and Support Workers’ pay equity claim that has left 65,000 underpaid health workers waiting.

“For more than a year we have undergone a rigorous pay equity process. We have systematically proven and measured the undervaluation of care and support workers based on their gender,” says PSA Assistant Secretary Melissa Woolley.

The three unions filed the claim on 1 July 2022 with 15 employers that are representative of the wider care and support sector, employing around 30 percent of the workforce.

“We are disappointed that as we near the end of the process, Te Whatu Ora has interfered and overstepped its role by trying to initiate a review of work on the claim that has already been completed and received the necessary sign off,” says E tū Assistant National Secretary Rachel Mackintosh.

Pay equity claims follow a prescribed process overseen by the Public Service Commission. Each milestone during the process is awarded appropriate signoff before advancing to the next stage and Rachel says the proposed review seeks to re-open elements of the work that have already been signed off.

“We are on the edge of a decision that would make sure care and support workers are paid fairly for what they do and that would strengthen our community-based health services. This unwarranted and damaging proposed review has significantly delayed reaching a settlement,” says caregiver and NZNO delegate Trish McKillop.

Unions have issued a legal challenge to the review.

An open letter has been launched calling on funders to provide sufficient resources to settle the claim as soon as possible and stop the interference. The letter is supported by community organisations including Grey Power, the National Council of Women, and the Council of Trade Unions.

The situation is now urgent as the Care and Support Workers Pay Equity Settlement Act is due to expire on December 31 st with no assurance of how its protections will be maintained.

“We are committed to working with the next government to ensure care and support workers receive a pay equity offer by the end of the year,” Melissa Woolley says.

Further information:

  • The Care and Support Workers’ pay equity claim covers home support workers, aged care workers, disability support workers, and mental health and addictions workers.
  • Aotearoa celebrated proudly in 2017 when unions won an historic pay increase for care and support workers following landmark legal wins championed by aged care worker Kristine Bartlett. But since then, their wages have regressed back to minimum wage while the cost of living has skyrocketed.

Packaging workers continue week-long strike for decent pay – E tū

Source: Etu Union

E tū members at Graphic Packaging in Auckland are doing a rolling strike until next week to win a decent pay increase for its lowest-paid members.

Up to 60 members from the packaging production plant will be participating in the strike with daily pickets during weekdays for the duration of the industrial action.

The company’s current pay offer still falls short of what members are hoping for.

Delegate Stephen Meredith says members are feeling really disappointed at the company’s most recent offer.

“It feels disrespectful to receive a low-ball offer. Right now, almost half our membership earns under $24 an hour, which is more than $2 less than the Living Wage.

“For us, that’s the crux of the matter and that’s why we are fighting, because our lowest-paid members are struggling and deserve better, as well as trying to get others a fair and decent increase,” he says.

E tū organiser Alvy Tata says the reason for the strike is simple: winning an acceptable increase for the lowest paid members.

“This is about recognising workers’ contributions, giving them the pay increase they deserve, and lifting up those who earn the least,” she says.

“The company needs to come to the table and give these workers a proper, fair pay rise now.”

Picket details

E tū members from Graphic Packaging International NZ are striking from Wednesday 4 October to Tuesday 10 October, with a picket outside Downers at 1061–645 Great South Road, Penrose, Auckland, 7am–2pm.

Note: The picket will be held on weekdays only.

NZCTU agrees with National Party; it’s important to stand up for workers

Source: Council of Trade Unions – CTU

Nicola Willis has today agreed with NZCTU analysis that shows less than 0.2% of New Zealand households will receive the advertised $252 a fortnight rate claimed by National.

NZCTU President Richard Wagstaff also agreed with Willis, in her belief that the NZCTU must stand for working people.

“That is exactly why we won’t back anyone who wants to strip away Fair Pay Agreements from hundreds of thousands of New Zealand’s lowest paid workers.

“We won’t support anyone who wants to reintroduce 90-day trials – something the Treasury has shown doesn’t work and leads to insecurity and exploitation. We won’t support people who don’t support increases in the Minimum Wage”.

“We won’t support a tax plan that is balanced by taking $2 billion from 350,000 low-income New Zealanders on benefits. We won’t back a plan that relies on making thousands of public servants redundant and cutting essential public services. We won’t back a plan that takes $2 billion out of climate change action and puts it in the pockets of landlords.”

Wagstaff said he would love to see the National Party deliver policies and programmes that would genuinely support working people across New Zealand. “But their proposed policies for the government would instead make life harder for working people right across Aotearoa.”

New Chief Executive for WorkSafe

Source: Worksafe New Zealand

WorkSafe New Zealand Board Chair Jennifer Kerr has announced the appointment of Steve Haszard as the organisation’s next Chief Executive.

Mr Haszard will start with WorkSafe on Monday October 9 for a term of up to 18 months.

“Following the decision of current Chief Executive Phil Parkes to move on by the end of 2023 the WorkSafe Board moved quickly on a succession plan to enable an effective transition and to bring certainty of leadership,” says Ms Kerr.

“Steve brings strengths in regulatory practice, organisational change, and strategy development and execution. His leadership experience will provide clarity for WorkSafe’s staff and system partners throughout this period of change.

“Steve’s immediate priorities will be to lead WorkSafe through its organisational change process, drive the articulation of our strategy and implement the response to the Strategic Baseline Review.”

On October 9 Mr Parkes will move into the role of Strategic Advisor to the Chief Executive to support the transition period and will continue to lead several key projects which underpin WorkSafe’s core regulatory functions until he finishes by the end of 2023.

“Mr Haszard will focus on WorkSafe’s future from day one, and the organisation will continue to benefit from Mr Parkes’ experience, institutional knowledge and strong relationships within the health and safety system.

“Phil has led WorkSafe through some challenging times including Whakaari and COVID-19 while contributing to healthier and safer outcomes for New Zealanders,” says Ms Kerr.

Media contact details

For more information you can contact our Media Team using our media request form. Alternatively, you can:

Phone: 021 823 007 or

Email: media@worksafe.govt.nz

Work-related health newsletter – October 2023

Source: Worksafe New Zealand

Our October work-related health update.

Updates in this edition include: 

  • updated guidance on local exhaust ventilation
  • information about managing spring fatigue
  • a summary of our work-related health notifications for 2022-2023
  • new workplace exposure standards and biological exposure indices coming soon
  • Kia Oho Ake Quick Prints, new health and safety resources for teachers in secondary and tertiary education; and
  • upcoming conferences.

Read the full newsletter(external link)

National’s fiscal plan continues attack on low income households

Source: Council of Trade Unions – CTU

National has finally released its fiscal plan after much delay and it reveals a plan to cut the incomes and essential public services the poorest New Zealanders rely on, just so they can pay for tax cuts for landlords and the well-off, says NZCTU President Richard Wagstaff.

“Cutting $2 billion from benefits during a cost-of-living crisis is cruel. These are the New Zealanders who can least afford a cut and who get $2 a week if they’re lucky from National’s tax cuts, and they would lose $40 a week in benefit cuts. On top of that, National would be putting up the price of public transport and prescription drugs.

“This doesn’t just affect workers who are out of a job, it also targets disabled New Zealanders and people with chronic illnesses. Why is National attacking these Kiwis who have the least?

“Additionally, National has confirmed that it plans to strip billions out of public services that are already under huge strain with current resources. The scale of the cuts that will be required to fund National’s fiscal plan will be felt deeply whether it’s at our borders, in our justice system, protecting our environment, or in numerous other areas of public sector activity.

“National’s claims that they can save billions by firing a few comms staff (who do vital working informing and consulting with the public) is pure fiction,” said Wagstaff.

Back-breaking demolition case a credit to victim’s tenacity

Source: Worksafe New Zealand

The need to protect workers, and to be clear about health and safety practices on work sites, are lessons from a botched demolition that severely injured a labour hire worker in Auckland two years ago.

The worker, Mosese Foketi, was employed to do waste removal. However, he was involved in demolishing a wall, which collapsed and trapped him under a large slab of clay blocks and mortar in September 2021.

Mr Foketi suffered multiple injuries – breaking his back in several places, along with his foot and shoulder. Last year Mr Foketi spoke publicly about the toll the incident had taken, and that he had been pressured to tell WorkSafe he wasn’t doing demolition work.

WorkSafe’s subsequent investigation found roles and responsibilities were not clearly defined or communicated on site, and risk management and supervision had fallen short.

Mac Group Limited, which oversaw the demolition, and its labour hire company JNP Construction Limited, were both charged by WorkSafe in September 2022 and sentenced today in the Auckland District Court.

“We’re pleased to get a resolution in this case for Mr Foketi, who hasn’t been able to work since the incident. He lives with ongoing pain from injuries that are absolutely not his fault – and we’re glad the court agrees,” says WorkSafe’s acting national manager of investigations, Paul West.

“Demolition is dangerous work. This case is a lesson for all businesses and organisations to have effective health and safety measures firmly in place to protect all workers from this kind of harm. It’s also a lesson for businesses and organisations to be honest and upfront with WorkSafe, because the truth will emerge if you are failing your workers on health and safety.

“While labour hire workers might feel there is a power imbalance in their employment arrangements, they are as entitled to the same health and safety protection as any other worker in Aotearoa. If you have concerns about the safety of your workplace, speak up if you feel able to do so. If not to your employer, then to a health and safety representative, someone you trust, or to WorkSafe directly,” says Paul West.

Background:

  • Mac Group Limited was sentenced on 25 September 2023 at Auckland District Court
  • A fine of $105,000 was imposed, and reparations of $35,900 ordered
  • Mac was charged under section 36(1)(a) and section 48 of the Health and Safety at Work Act 2015
    • Being a PCBU having a duty to ensure, so far as is reasonably practicable, the health and safety of workers who work for the PCBU, including Mosese Foketi while the workers are at work in the business or undertaking, namely demolition work at 2/14 Wakefield Street, Auckland (the site), did fail to comply with that duty, and that failure exposed the workers to risk of death or serious injury.
  • The maximum penalty is a fine not exceeding $1.5 million.
  • JNP Construction Limited was sentenced on 25 September 2023 at Auckland District Court
  • A fine of $6000 was imposed, and reparations of $18,400 ordered
  • JNP was charged under section 36(1)(a) and section 48 of the Health and Safety at Work Act 2015
    • Being a PCBU having a duty to ensure, so far as is reasonably practicable, the health and safety of workers who work for the PCBU, including Mosese Foketi while the workers are at work in the business or undertaking at 2/14 Wakefield Street, Auckland (the site), namely labour hire to Mac Group Limited, did fail to comply with that duty, and that failure exposed the workers to risk of death or serious injury
  • The maximum penalty is a fine not exceeding $1.5 million.

WorkSafe job losses another reminder of risks to public services this election

Source: Council of Trade Unions – CTU

Working people will bear the brunt of WorkSafe’s proposal for a deep and wide restructuring that was announced today said the New Zealand Council of Trade Unions.

“Reducing WorkSafe’s capacity and capability is the wrong thing to be undertaking when New Zealand’s poor health and safety record is costing so many lives of working people,” said NZCTU President Richard Wagstaff.

Between June 2022 and June 2023, 71 New Zealanders died from a result of an injury at work. In addition, estimates suggest that another 750-900 workers die each year from work-related occupational diseases such as asbestosis and cancers.

“More funding is needed right now to ensure WorkSafe’s valuable mahi can continue to help ensure working New Zealanders can return home safe and healthy from work.”

While the NZCTU agrees with the intention to prioritise maintaining the existing frontline inspectorate numbers, this needs to be understood within the context of an already understaffed resource, and now the frontline inspectorate will operate with even less organisational support.

In addition, WorkSafe have an array of core legislative functions which are beyond simply ensuring compliance with minimum standards, such as establishing codes of practice and best practice guidance on how work safely, data analysis and providing research and education.

Following the Pike River Mine tragedy, the Independent Taskforce on Workplace Health and Safety called for a regulator that had both the mandate and resources to be a visible and effective best practice regulator.

“Reducing WorkSafe’s capacity now risks going back to how things were in the lead up to Pike.

“These proposed cuts will only make it much harder for New Zealand to make real progress in turning around its poor health and safety record,” said Wagstaff.

“What is really worrying is that National and Act are threatening to make even more cuts at WorkSafe and across the public service to fund their tax cuts for landlords and others.  

“When cuts are made to public services, there are real consequences as this exercise at WorkSafe shows. The scale of cuts demanded by National and ACT would have a huge impact on public services New Zealanders rely on – there is no doubt that hospitals, schools, and many other services are at risk.

“You just can’t cut public services and expect better results – WorkSafe’s proposals for restructuring are a clear warning of the consequences of that,” said Wagstaff.