Category: Media releases

Source: Council of Trade Unions – CTU

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“National’s tax plan now makes even less fiscal sense given that significant parts of it have been withdrawn due to the loss of the foreign buyers’ tax.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.”

Source: Council of Trade Unions – CTU

The NZCTU strongly supports unions, including the Public Service Association Te Pūkenga Here Tikanga Mahi, E tū, National Union of Public Employees, and New Zealand Nurses Organisation Tōpūtanga Tapuhi Kaitiaki o Aotearoa, in filing a second pay equity claim for 65,000 care and support workers.

“This claim addresses ongoing underpayment fuelled by gender-based discrimination in a sector where a pay equity settlement is long overdue.

“It is now urgent that employers and government support this claim process to a speedy conclusion, with the Care and Support Settlement Act set to expire on December 31,” said Melissa Ansell-Bridges, NZCTU Secretary.

“This highly skilled and essential workforce needs proper recognition for the work they do.

“The claim covers workers in home-based support services, aged residential care, mental health, addictions, and disability support services. It follows unacceptable delays in the original claim.

“Workers have been left waiting for far too long for that injustice to be rectified, going to work every day knowing they’re paid less than what they’re worth.”

As the Care and Support Workers (Pay Equity) Settlement Act 2017 approaches its expiration, the NZCTU urges the incoming Government to intervention to ensure fair wages for this dedicated workforce.

Source: Council of Trade Unions – CTU

2pm on Friday, November 3 will go down as one of the moments in New Zealand’s political history reminiscent of Sliding Doors. Up until that point, National and Act were on track to form a government with very similar ideological and fiscal aims. Upfront tax cuts would be financed by reduced investment in public services. There would be a greater role for the market in the public sphere and a more relaxed set of labour regulations. After 2pm, New Zealand First became a required partner. That makes life much harder for National and Act, as it brings a very different political perspective and a different set of financial requirements.

The centrepiece of National’s election campaign was $14.6 billion of income and landlord tax cuts. Some $3b of that was financed by a new tax on overseas property buyers. That’s now all but certainly gone, as it is unthinkable that NZ First would tolerate the sale of Kiwi houses to overseas buyers. Filling the gap left by the loss of that new tax would require a doubling of the indicated cuts to the public service – to 17 per cent.

That’s not feasible either, politically or practically. So, the promise to return a range of tax benefits for landlords will probably have to go. In a cost of living crisis, providing these made little economic sense to begin with. They put money in the pockets of those who have already done really well over the past two decades, yet the cuts deliver small (if any) value to the taxpayer or the economy.

Then there are other issues that need to be considered. National’s tax cut package also relies on the delivery of $2.1b of savings from ending building depreciation for commercial properties. Labour campaigned on this too. But NZ First has campaigned repeatedly on the need to provide additional depreciation support – particularly for small businesses. There’s a big cost to that. That $2.1b in savings starts to look like a tempting target for a policy that would be welcomed by the business community and would improve our chronic business investment problem.

The loss of both foreign buyers and commercial building depreciation would put a cumulative $5.1b hole in the tax plan. However, the coalition negotiations are likely to throw up other areas where the parties differ. Both National and Act have campaigned on removing what remains of regional growth funding within the Ministry of Business, Innovation and Employment. But that is likely to be an anathema to NZ First, who have championed the creation of a new Regional Productivity Growth Fund. If it were even half the size of the previous Provincial Growth Fund, that would require funding of $2b across the forecast period.

Funding this could come from the closure of the Climate Emergency Response Fund – which generates $2.3b according to National, and is to be used for tax cuts. Instead, it could be used to deliver energy security programmes across New Zealand. Fuel security is a key policy for NZ First, and it would also have the benefit of supporting job security and greater economic security in regions. But the gap in the plan is now $7.4b.

Taking that out of the tax plan would leave $7.2b remaining. That’s not enough to deliver even Simon Bridges’ policy of moving tax brackets to reflect inflation – it’s $1.8b short. And that’s before Treasury has adjusted the figures to account for faster-than-anticipated wage growth. This could be found from the remaining allowances, but in the first Budget, that would likely leave only $600 million for all new spending. Just keeping the lights on in education will consume all of that, something that National has promised repeatedly on the campaign trail. After that, there’s nothing left.

That also means the benefits of National’s tax cuts are now seriously diminished. A fulltime minimum wage worker would get $2.15 a week – not $12 a week. The support for families with early childhood education costs would be gone. The number of families getting $250 a fortnight in support from the Government wouldn’t be 3000. It would be zero.

All of this shows the challenges facing the three parties in pulling together a package that allows them to work together. What it also suggests is that rather than rushing headlong into tax and other changes at a December mini-Budget, some caution and restraint would be appropriate. The parties could spend a little more time working out what is actually needed, and how they will deliver that, without borrowing extra for tax cuts.

If you want an example of the headlong approach in action, look no further than the UK and the problems the Liz Truss government faced. It famously lasted less time than it took for an iceberg lettuce to wilt. Rushing to deliver tax cuts now for ideological purposes is likely to haunt all involved and will likely require painful changes in the future. The title track of the movie Sliding Doors is called Turn Back Time. The incoming Finance Minister might well be whistling that tune if they can’t get it right over the next few weeks.

Source: Council of Trade Unions – CTU

News of WorkSafe’s confirmed organisational changes should be seen as a stark warning about the impact of cuts to public services says the New Zealand Council of Trade Unions.

“It beggars belief that WorkSafe will do a better job with such a significant decrease to staffing resource,” said NZCTU Secretary Melissa Ansell-Bridges.

“This will have direct consequences for businesses and communities – a slimmed down WorkSafe means it will not be able to do the same job of keeping working people safe at work”.

“Our track record of workplace deaths and injuries is not something to be proud of. Axing 113 jobs at the health and safety regulator isn’t the right decision for the health and safety system in New Zealand.”

71 workers didn’t return home from work between June 2022 and June 2023. That represents 71 parents, children, friends and whānau members that were killed on the job in New Zealand workplaces. 71 families and communities devastated by these deaths. A further 750 – 900 workers died during this period from the impact of work-related occupational diseases such as asbestosis and cancers.

“This means that on average, one worker is being killed every week at work, and each week between 15-18 workers on average will die from health-related impacts of their work.

“It is difficult to comprehend how further slashing WorkSafe will improve this alarming picture. The data speaks for itself, more resource is needed, not less.

“Maintaining the level of inspectors is important but that is only one of WorkSafe’s core functions and their ability to be an effective inspectorate is supported by other important functions in the organisation which are now being lost.

“The NZCTU will continue to advocate for WorkSafe to be properly resourced and calls on the incoming Government to provide WorkSafe with sufficient resources to meet all its legislative functions. Failure to do this, puts working peoples’ lives at risk.

“These cuts to WorkSafe provide a bleak picture of the reality of the incoming Government’s proposed deep and savage cuts to the wider public service for working New Zealanders. It means poorer services that they, and their whānau, rely on every day.”

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions is calling on investors in Supie to do the right thing and pay the company’s workers the money they are owed.

Workers at Supie were reportedly advised yesterday that the company had gone into voluntary administration and they would not be paid for their last two weeks of work or their annual leave.

NZCTU Secretary Melissa Ansell-Bridges says investors have a moral obligation to pay workers what they are owed.

“These are low paid workers already dealing with a cost of living crisis who are now being robbed of their final pay and their annual leave. Many of them are now concerned they will not be able to pay their rent.

“This is a clear injustice and the investors have a moral responsibility to put it right. It is the investors who took a risk on Supie in the hope of financial reward, and it is they who should bear that risk, not the workers who have done everything they can to make the business a success.

“We are calling on the investors to stop hiding behind the legal fiction of the company structure and instead get together and pay the workers what they are owed.”

Ansell-Bridges says this issue shows New Zealand needs to strengthen worker protections, not weaken them.

“New Zealand ranks lower than Paraguay when it comes to worker protections in cases of business failure.

“Instead of trying to remove Fair Pay Agreements and restore 90 day trials, the incoming government should be looking to improve worker protections to avoid injustices like we are seeing right now at Supie.”

Source: Council of Trade Unions – CTU

The New Zealand Council of Trade Unions welcomes back President Richard Wagstaff and National Secretary Melissa Ansell-Bridges, who were both re-elected for a four-year term.

Today at the NZCTU Biennial Conference, all four officers standing for election were welcomed back unopposed.

Richard Wagstaff was thrilled to represent the peak union movement for a third term.

“It remains a huge honour to represent and advocate for workers across the motu. A strong union movement is essential for New Zealand as we continue to navigate new challenges like just transitions, the ongoing pandemic, and increasing inequality.”

Melissa Ansell-Bridges expressed her privilege in continuing as National Secretary for a second term.

“We have a lot of work ahead of us, but the NZCTU remains deeply committed to working people. I’m looking forward to continuing this work for another four years.”

Vice-President Rachel Mackintosh was also re-elected for a third term, and Vice President Māori Syd Keepa was re-elected for a fourth term.