Category: Employment Issues

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Kinleith mill closure shows need for industrial strategy

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to deliver an economic and industrial strategy for regional manufacturing, rather than just expressing sympathy for job losses, following the announced closure of Kinleith mill in Tokoroa.

“The closure Kinleith mill in Tokoroa is not just devastating for the 230 workers and their families, it is another major blow to regional manufacturing in Aotearoa New Zealand,” said Wagstaff.

“Over the last several months we have seen significant job losses in the regional manufacturing sector, with worksites closing around the country.

“The Government’s failure to step in and protect these communities demonstrates their lack of concern for regional New Zealand and the care for workers and their whānau.

“This is not about crudely subsidising and giving handouts to particular companies, it’s about putting forward an economic and industrial strategy that supports industries and regions to protect and generate good jobs and create full employment for working people.

“What’s needed is a government that is willing to show leadership on economic development by working with industry and unions to deliver good work and high living standards for all.

“Workers also deserve active support when they lose their jobs, not just sympathy. That’s why for years we have been calling on successive governments to adopt a social insurance scheme that would protect workers through redundancy.

“We haven’t seen ministers lift a finger for any of the workers who lost their jobs in this sector, and yet they will support landlords and higher income earners with billions of dollars’ worth of tax cuts.

“Unless the Government responds to the pain that regional communities are experiencing with active industrial policy, we are going to continue to see the loss of more and more manufacturing jobs in this country,” said Wagstaff.

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Work-related health newsletter – November 2024

Source: Worksafe New Zealand

Kia ora koutou and welcome to the November 2024 work-related health newsletter.

Thank you for your interest in work-related health this year. We’ll be back in February with the next edition of this newsletter but in the meantime, check out the latest guidance and information to help you ensure a healthy and safe work environment, especially over the summer.  

We hope you have a healthy and safe festive season. 

In this edition: 

  • Reminder about summer risks
  • Asbestos Awareness Week
  • New manual tasks screening and risk assessment tools 
  • Psychosocial risks guidance consultation
  • Work-related health notifications 
  • MBIE occupational diseases consultation
  • New Zealand Journal of Health and Safety Practice: From Robens to 2024

Read the full newsletter(external link)

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Uniformed Defence Force should not be used as strike breakers

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is criticising the Defence Minister Judith Collins for deploying the military as strike breakers against their own people.

“In a modern liberal democracy, any deployment of the armed forces in employment relations is a drastic step, and should be avoided at all costs,” said Wagstaff.

“The first thing a responsible employer and Minister should do is make a reasonable offer in good faith to settle the collective agreement. That has not occurred and right now seems to be the last thing they want to do.

“To so easily bring out the military against their own people – the civilian defence force – is reckless and will do nothing to build organisational cohesion and commitment.

“NZDF civilian staff represented by their union, the PSA, don’t expect to come under attack just because they want to settle their collective agreement and have taken lawful industrial action in support of their modest claims.

“But NZDF don’t appear to want to settle, if they did, they would make a reasonable offer – not the current offer of 0% which is not reasonable.

“It’s alarming that the Minster opted to take this course of action, instead of urging the NZDF to turn up at the bargaining table with real intent to settle.

“This Government is at war with an imaginary enemy they call the ‘back office’, when they should understand that any capable military force, like other industries, depends on the support of hard-working civilians who provide the foundation for operational success.

“The real enemy of the defence force and public services in general is not the back office, it’s under investment, low morale and poor leadership from this Government.

“The Minister should be supporting those who job it is to support the military, by pressing NZDF into getting an agreement with the PSA,” said Wagstaff.

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Government must vote down ACT Members Bill that would undermine workers’ rights

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to vote down an ACT Party Members Bill that would undermine workers’ rights by making it easier for employers to fire workers.

Last week ACT MP Laura Trask’s Employment Relations (Termination of Employment by Agreement) Amendment Bill was drawn from the ballot.

“This Bill would be a major backwards step. It is an attack on the rights of working people and makes it less likely that workers will be treated with fairness and respect in their relationships with employers,” said Wagstaff.

“Brooke van Velden has said that she supports the Bill ‘in her capacity as a fellow ACT MP’. What we want to know, is what her official position as a government minister?

“What this Bill does is make it easier for employers to exploit power imbalances in the workplace and constructively dismiss workers, while making it harder for workers to hold employers responsible. Constructive dismissal is an objectionable practice.

“This approach would only make it easier for employers to lean on workers and push them out.

“There is already a process for employers to engage in mediation with staff. This Bill is not needed to ensure that without prejudice conversations can occur. These occur frequently and play a part in resolving practically all employment issues.

“All workers have the right to good work and should be able to expect to be treated with fairness in the workplace.

“This change would appeal to the worst employers who don’t have any respect for proper process or the rights of employees. We are calling on the Government to clarify their position and vote down this unnecessary and unjust Bill,” said Wagstaff.

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New report exposes a care sector in crisis – E tū

Source: Etu Union

E tū, the union for care and support workers, is releasing a new report into the state of the care and support industry in Aotearoa New Zealand.

The Transforming Care report lays out the many problems in the industry, including in residential aged care, home support, disability support, and mental health and addiction support.

The report tells the story of workers with their own voices, including a series of in-depth personal interviews with E tū members, the results of a survey of care and support workers, and support from various stakeholders across the community.

The report was compiled with the help of Dame Judy McGregor, who as first Equal Employment Opportunities Commissioner, released the 2012 Caring Counts report, a result of the inquiry into the equal employment opportunity issues in the aged care workforce. Caring Counts was a significant part of the evidence base that lead to the historic equal pay settlement in 2017.

The report will be presented to a government representative by care and support workers, as well as their community supporters.

E tū Assistant National Secretary, Annie Newman, says we have a real crisis in care and support, which needs urgent attention.

“Our report, and our wider Transforming Care campaign, has a focus on three core pillars – the value of care, the standard of care, and the funding of care.

“Workers need to be properly valued, especially through their pay, for their essential work. They need decent conditions to work in, with decent training and the right number of staff to do the work safely. The funding model needs a total overhaul so the interests of carers, those they care for, and their communities are taken into account.

“We know that we can only solve these problems with the input of our whole community, and we are thrilled to have the support of individuals and organisations that share our concerns and are eager to work together for real transformation.”

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Sistema proposes sacking over 100 workers – E tū

Source: Etu Union

Workers at Sistema’s Auckland plant are gutted to learn the company intends to cut their 407-strong workforce to 305, meaning 102 people will lose their jobs.

The plastics manufacturer, which produces popular plastic storage products for both domestic and international markets, says the proposal is the result of declining sales and increasing costs.

Ma Roberts, a Sistema worker and E tū Industry Convenor for Manufacturing and Food, says the news is hard to take.

“We’ve known about this possibility for a while, but for many it still seems like a real surprise,” Ma says.

“Work has been slowing down since last year, and we know the production costs have risen for the company. But people rely on this work to get by, and for many workers this job is the best opportunity they have.”

Ma says the workforce is experiencing a sense of dread about the future.

“Many workers have English as a second language and are worried they could have trouble finding new work. We have older workers too, who could struggle. There is a lot of fear around what is to come.

“It is especially hard this close to Christmas, which is a stressful and expensive time for many people. Employees have seen that work has been quiet for a long time now, so it’s a disappointment that this is being brought up right before Christmas when families are under pressure.

“The company has offered voluntary redundancy which is good, but we will need a fair and transparent process to figure out who gets to keep their job, and those who don’t will need as much support from the company as possible.”

E tū Director Georgie Dansey says she understands the position the company is in, but stresses that the company can do a lot to help support the workers who will lose their jobs.

“As we begin consultation around this proposal, the immediate and longer-term interests of affected workers must be front and centre,” Georgie says.

“There are promising early signs that E tū can work with the company to support the workers. For example, they are offering a paid four-week notice period without a requirement to work, and an extra four weeks’ pay after that. This will certainly help people who have lost their jobs to get back on their feet.

“However, we know there is a lot more companies can do in this situation. We’d like to see support for training and skills development, for example help with developing numeracy and literacy to give workers a better shot in the job market.

“This is what a Just Transition is all about – ensuring the effects of industry pressures do not fall unfairly on the shoulders of the people doing the work.”

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Storeman killed in racking collapse

Source: Worksafe New Zealand

Nine tonnes of badly loaded steel fell and killed a Christchurch man, in what WorkSafe New Zealand says is a stark warning to any business that uses storage racks or shelving as part of its operations.

33-year-old Franchesco Krueger was sweeping underneath racking, when it collapsed on him at United Steel in Wigram in November 2020.

A WorkSafe investigation found glaring safety gaps, with the racking not cross-braced or bolted to the floor for stability. The business did not conduct regular and effective safety inspections, and investigators also found the rack design had no professional engineering input.

United Steel has now been sentenced for the health and safety failures that contributed to the death of its storeman.

“This is a tragic incident that should never have occurred, if United Steel had managed its risks,” says WorkSafe’s area investigation manager, Steve Kelly.

International best practice guidance exists on the safe racking of steel products, and WorkSafe also has information on working safely with pallet racking systems.

“A professional engineer or a similarly qualified expert is best to advise on any commercial or industrial racking bigger than what you have at home in the garage. Shelving should be fit for purpose and stable fixings in an industrial setting like this are a must.”

“Businesses should conduct regular inspections to enable early detection of damage, missing parts, or improper installation which can help avoid a catastrophic collapse. WorkSafe also recommends all racking systems have clear signage showing the maximum weight that can be safely held, and any specified load configurations to avoid overloading,” says Steve Kelly.

Businesses must manage their risks and where they don’t WorkSafe will take action. This is part of our role to influence businesses to meet their responsibilities and keep people healthy and safe.

Manufacturing is one of New Zealand’s most dangerous sectors, which is why it’s a focus of WorkSafe’s new strategy. Our priority plan for the sector targets metal fabrication as a specific source of high harm. WorkSafe’s targeted frontline activities  in manufacturing will be increasing as there are opportunities to significantly improve health and safety performance, reduce acute and chronic harm, and address inequities.

Read our guidance on working safely with pallet racking systems

Background

  • United Steel was sentenced at Christchurch District Court on 1 November 2024.
  • A fine of $330,000 was imposed, and emotional harm reparations of $100,000 ordered
  • United Steel was charged under sections 36(1), 48(1) and (2)(c) of the Health and Safety at Work Act 2015
    • Being a PCBU having a duty to ensure, so far as is reasonably practicable, that the health and safety of workers who work for the PCBU, including Franchesco Krueger, is not put at risk while they are at work in the business or undertaking, namely the storage and distribution of steel, at USL’s premises at 22 McAlpine Road, Wigram, Christchurch, did fail to comply with that duty, and that failure exposed Franchesco Krueger to a risk of death or serious injury.
  • The maximum penalty is a fine not exceeding $1.5 million.
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Unemployment rising shows the need for a plan

Source: Council of Trade Unions – CTU

New labour market data released by Statistics New Zealand today shows a weak labour market and the need for a plan to deliver positive change, said NZCTU Economist Craig Renney.

“Unemployment rose to 4.8% – which is the highest rate it has been since COVID-19.  There are 29,000 more people unemployed since this government took office. Yet there is no plan to help workers – that needs to change,” said Renney.

“It’s clear that some communities are increasingly being left behind. Unemployment for young people is now a real concern, with 20% of 15–19-year-olds unemployed and 8.4% of all 20–24-year-olds unemployed. Māori unemployment is 9.2% and Pacific Peoples unemployment is 9.9%. Unemployment in in Auckland is now 5.2%.

“Wages are also reflecting the softer labour market, with 37% of all workers seeing no pay rise, and 50% of workers seeing an annual pay rise less than the 3.8% increase in household costs reported yesterday. With the minimum wage rising by less than inflation this year, its low-income workers who are bearing the brunt of this Government’s policies.

“This was the first time in 37 quarters that the number of people employed in New Zealand fell. A million fewer hours were worked this year. 367,000 people want more work but can’t currently get it. The numbers unemployed for more than 6 months is at its highest level since 1992.

“The headline rate of unemployment didn’t hit 5%, but the underlying data shows that the labour market is as weak as people fear. There have been significant layoffs at sites across New Zealand which won’t have registered yet in this data.

“The Government’s only plan appears to be welfare sanctions which will only increase hardship for unemployed workers. Workers deserve to know what this government is going to do ensure everyone has access to good, sustainable work,” said Renney.

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Government science cuts take New Zealand even further backward

Source: Council of Trade Unions – CTU

NZCTU Te Kauae Kaimahi President Richard Wagstaff is deeply concerned about the future of investment in science, following the latest announcement of another 60 jobs cuts at Environmental Science and Research (ESR). The Government has now axed more than 500 jobs in the public science sector.

“The Government doesn’t seem to believe in the value of science and isn’t interested in making the investment required. Instead, it is taking us backwards and slashing funding in favour of tax cuts for landlords and tobacco companies,” said Wagstaff.
 
“We should be increasing investment in science and properly funding Crown Research Institutes (CRIs) and universities. New Zealand is only spending about half the OECD average on science and research and development (R&D) already.
 
“It’s well known that countries that invest a higher proportion of GDP directly in R&D (both private and public) see greater returns economically, socially and environmentally.
 
“The decision to make these cuts has been made even though the report of the Science System Advisory Group report is due out shortly, which demonstrates the lack of commitment there is to listen to the evidence on the importance of science investment.
 
‘The Government talks about the need to tackle our poor productivity performance, and the need for a longer-term plan to arrest our decline, but their actions continue to take us in the opposite direction.
 
“It’s time we had a serious conversation about science, and we urgently need a government that is prepared to have that conversation and not just bury it’s head in the sand,” said Wagstaff.
 
Note:
The CTU and several affiliated unions are member organisations of the Save Science Coalition. The Save Science Coalition released a report in July this year about the cuts to science funding and staffing so far, which can be found here. The group is now working on an update to this report, to account for the ongoing cuts we are seeing at GNS, ESR and elsewhere. The report will contain more detailed numbers and information and is expected to be released before the end of the year.

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Monthly Employment Data shows weakness in economy

Source: Council of Trade Unions – CTU

Monthly employment data released today by Statistics New Zealand showed our continuing labour market weakness, and particularly challenging conditions for young working people, said NZCTU Te Kauae Kaimahi Economist Craig Renney.

“There are 21,000 fewer filled jobs than this time last year, and the fall has been led by those starting out in work. There are 25,000 fewer jobs being filled by people aged 15-24 than a year ago. This data shows that right now, it’s a hard place to find work for young people.”

“On an annual basis, weakness in the labour market was particularly evident in Auckland (down 10,500 filled jobs) and Wellington (down 3,000). The number of filled jobs fell 2% in Southland, 1.7% in Taranaki, and 1.1% in Manawatū-Whanganui. This data won’t yet reflect the significant layoffs in places like the Smithfields Timaru site or Winstone Pulp International in Ruapehu.”

“Annually, construction seems to be the most adversely affected sector, with a loss of more than 10,000 filled jobs. Accommodation and food services have 7,000 fewer filled jobs, and manufacturing sees nearly 6,000 fewer filled jobs. Administration and support services sees 7,000 fewer filled jobs. Private sector employers seem to be losing staff quickly in this labour market.”

Renney said, “The pressure is also applying to earnings. Annually, accrued earnings rose 0.8%, the slowest September rate since this series began in 2019. Here, unemployment is forecast to rise further to 5.5% in the near future, while job growth in the US and the UK is ahead of forecasts, and Australia put on an additional 47,500 jobs last month.”  

“This data shows that the labour market needs a plan, one that focusses on helping people into good, long-term work. Yet the government is doing the opposite – making work more insecure, taking away essential investment, and it has no employment plan, except more sanctions. There are things we could be doing to manage the pain being felt for working people right now. But the government is choosing not to deliver them.”