Category: Media releases

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Finance Minister needs to explain ferry decision cost to taxpayer

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says the cancellation cost for the iRex ship build is likely to come in at more than NZ $300 million, and could run up to a maximum cost approaching a half a billion dollars (NZD) at current rates. 

This would be on top of around a half a billion NZD in sunk cost on the cancelled iRex project – figures the Maritime Union has been advised on after consulting with the maritime industry here and offshore.

Maritime Union of New Zealand National Secretary Carl Findlay says the Finance Minister needs to explain how this happened and why she should keep her job. 

“This single decision is likely to have torched a billion dollars of taxpayer’s money with nothing to show for it. It’s fiscal arson.”

Mr Findlay says on top of this cost, New Zealand still needs to buy new ferries. 

He says unlike the iRex ferries cancelled by the Minister, which were purchased at a fixed price in 2021, their replacement will have to be bought at 2024 shipbuilding prices, which are currently at their highest since before the global financial crisis of 2008.

“Between that and our dollar being much weaker than it was when we struck the 2021 deal, the Government’s replacement ships could cost twice as much to build as the cancelled ones.”

Mr Findlay says industry players believe the Government is looking to hide some of this cost through a Private Public Partnership. 

He says we’ve seen time and time again all this would do is increase the expense, and shift it onto users and future taxpayers.

“Putting a private for-profit gatekeeper on the key freight route between our main islands is a recipe for economic disaster.

“Prime Minister Luxon needs to bite the bullet, try to salvage the iRex deal in whatever way he can, and admit the cost his Finance Minister’s commercial blunder has put on the taxpayer.

“He should also ask himself whether his Finance Minister should be left in charge of running our economy after making this colossal economic and commercial mistake.”

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NZCTU submit in opposition to charter schools

Source: Council of Trade Unions – CTU

“The NZCTU Te Kauae Kaimahi strongly opposes the reintroduction of charter schools in the education system and calls on the Government to withdraw this dangerous bill,” said Acting NZCTU Secretary Erin Polaczuk.

“It is outrageous that David Seymour has said that he is trying to undermine unions by amending the legislation to restrict the ability of unions to initiate bargaining for multi-employer collective agreements involving a charter school.

“We are demanding that the Government protect workers rights to redundancy and collective bargaining, and not breach it’s obligations under both the New Zealand Bill of Rights Act and the ILO conventions.

“This Bill threatens to introduce a for-profit education model in schools and communities right across Aotearoa, with the potential to fundamentally reshape the education system.

“This significant reform to our education system is being hastily pushed through by the Government, which is restricting the ability for those affected by the Bill to have their say.

“This model is far worse than what was legislated for under the last National government – giving the Minister and ministerial appointees the unilateral power to convert state schools to charter schools without due process and agreement from school communities is unprecedented and contrary to the principles of Aotearoa’s education system.

“Children and parents have the right to expect a high standard of education delivered by qualified teachers and to have a say in how their schools are run.

“We are also deeply concerned that under these proposals charter school sponsors will not be under the same legal obligation as state school boards to give effect to Te Tiriti o Waitangi,” said Polaczuk.

Read the submission here:

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Loss of Takutai Chief undermines New Zealand shipping and supply chain

Source: Maritime Union of New Zealand

 
 The loss of a New Zealand operated coastal freighter and 12 jobs due to the economic downturn threatens the viability and resilience of our supply chain.
  
Swire Shipping, the owners of Pacifica Shipping, have advised its second New Zealand coastal freighter Takutai Chief will be removed from service soon after a downturn in trade.
 
Mr Findlay says the Union accepts the reasons given for the decision, including current poor economic conditions and service changes by international lines reducing feeder volumes.
 
“Nonetheless, this is a major blow to New Zealand shipping and our maritime workforce, and reduces the resilience and future security of our supply chain.”
 
Mr Findlay says Pacifica has shown an ongoing commitment to New Zealand coastal shipping.
 
He says coastal shipping offers a low emission transport mode, and reduces congestion and wear on roads.
 
The situation reflect a larger crisis within the New Zealand maritime industry where there is a lack of stability due to failure in strategic policy, he says.
 
Mr Findlay says the dependence of New Zealand on overseas shipping was a major problem during COVID with serious disruptions when overseas shipping calls were delayed or dropped.
 
He says skilled New Zealand seafarers will leave the industry for opportunities in Australia, with an ageing workforce seeing a large number of seafarers retiring in the near future.
 
Mr Findlay says the uncertainty around the future of Interislander ferries is another aspect of the ongoing crisis in New Zealand shipping.
 
“Despite being a maritime trading nation, New Zealand has no clear strategy for a sustainable shipping industry, which leaves us exposed and vulnerable in a volatile global market.”
 
“New Zealand needs to build its coastal shipping capacity, with New Zealand owned, operated and crewed ships.”
 
Pacifica Shipping is an operating division of Swire Shipping (N.Z) Limited.
 

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ERA determination on public service job cuts a win for working people

Source: Council of Trade Unions – CTU

The Employment Relations Authority’s determination that the Ministry of Education failed to comply with their workers’ collective agreement when cutting jobs sends a strong message that workers’ rights must be upheld, said NZCTU Te Kauae Kaimahi President Richard Wagstaff.

“The Government’s reckless attack on public services and workers has been brutal, and aspects of it have now been deemed unlawful,” said Wagstaff.

“We welcome this decision from the Employment Relations Authority, as it shows that government departments can’t just get away with ignoring their obligations to their workers.

“The directive from cabinet ministers to public service departments to make sweeping cuts to workforces has directly led to this disregard for worker’s rights and conditions.

“The Government’s rush to axe jobs has been indiscriminate – workers should be retained when public services are already struggling to keep up with demand.

“Working people deserve respect and dignity, and for their rights to be upheld. Collective agreements must not be ignored in pursuit of the Government’s ideological agenda.

“We congratulate the PSA for taking this case and fighting to uphold the rights and dignity of their members in the public service.

“This decision sends a strong message that employers must uphold their agreements with workers and not rush ahead with indiscriminate job cuts,” said Wagstaff.

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Inflation data shows cost-of-living challenges continue

Source: Council of Trade Unions – CTU

Data released by Statistics New Zealand today shows that annual inflation was 3.3%, falling from by nearly half from a year ago (6% – June 2023).

 “This fall in inflation is welcome, but it is being driven by international factors rather than domestic actions. There are also costs for working people that continue to increase rapidly,” said NZCTU Economist Craig Renney.

“This data is also weaker than expected – suggesting problems within the wider economy. It supports other data which implies that we might be heading back into falls in economic output.

 “The falls in inflation were driven by reductions in the price of food, particularly fruit and vegetables. There are also falls in the price of furniture, household appliances, and the cost of second-hand vehicles. This data suggests a lack of demand in the economy and a lack of consumer confidence. There were also falls in IT equipment and international airfares – again suggesting that demand for these discretionary goods may be falling.

“Meanwhile, pricing for rents continues to increase rapidly – rising 4.8% annually. This is the fastest rate of growth for 17 years, which is as far back as the data goes. Local Authority Rates increased 9.8%. Insurance prices increased 14% annually, led by growth in property insurance (24%) and car insurance (24%). Petrol prices rose 14.7%. These are costs that are very difficult to avoid, and so will be hitting working people in their pocket.

 “This data will be welcomed by those looking for interest rates to fall. But they also suggest that economic growth is stalling, and that action is needed now to support employment and household incomes. The cuts in investment set out by the Government at the recent Budget are likely to exacerbate this problem even further,” said Renney.

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Ferry report does not solve the big problem

Source: Maritime Union of New Zealand

The Maritime Union has sounded a note of caution about the seaworthiness of Interislander ferries.
KiwiRail has today released a summary of a maritime assessment of the three Interislander ferries carried out by DNV, which says the ships are in reasonable condition.
Maritime Union of New Zealand National Secretary Carl Findlay says the Union appreciates the efforts being made by KiwiRail, but members on the ferries had real concerns about health and safety.
“Our members crew those ferries, so if something does go wrong they are placed in danger.”
Mr Findlay says the Union is treating the conclusions of the DNV report with caution.
He says keeping the current vessels running until the end of the decade is a stop gap measure at best.
“There have been a number of technical issues with the ferries already, some with potentially very serious outcomes, and the fact remains that there are many ageing systems and components in service on the ferries.”
Mr Findlay says that KiwiRail has been put in an impossible position.
“KiwiRail doesn’t really have any choice but to soldier on with end of life vessels and push up maintenance costs and maintenance time for the ships.”
He says the main problem remains – there is no clear indication yet what the Government has planned in place of the iRex project it dumped last year.
Mr Findlay says the full cost of abandoning the iRex project is yet to be determined and would possibly wipe out any savings on new ferries and terminal infrastructure.
 

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19 organisations send Brooke van Velden open letter calling for engineered stone ban

Source: Council of Trade Unions – CTU

Unions, public health experts and health and safety specialists have today released an open letter sent to Minister for Workplace Relations and Safety Brooke van Velden calling on the Government to follow Australia’s world-leading example and ban the use, supply and manufacture of engineered stone products.

Australia’s ban, which came into effect 1 July 2024, was put in place following broad consultation, extensive analysis, and is based on scientific evidence that indicated engineered stone workers exposed to silica dust are disproportionately diagnosed with accelerated silicosis – a fatal lung disease.

“We are calling on Brooke van Velden to listen to the evidence and save workers’ lives by banning engineered stone in Aotearoa New Zealand,” said NZCTU President Richard Wagstaff.

“Dubbed the modern-day asbestos, the evidence of the harm caused by silica dust is overwhelming. It is clear that a ban on engineered stone is the only option.

“We have continued to warn the Minister that engineered stone needs to be banned. We are pleased to be joining with 18 other organisations to reiterate the urgency of this demand.

“There is no level of safe exposure to silica dust, and it can be fatal. Workers are developing symptoms at an accelerated rate, and at a much younger age than other occupational respiratory diseases. Silicosis is an incurable disease, but the exposure is preventable.

“We want Aotearoa to replicate the regulatory settings adopted in Australia to give workers, businesses, and the wider public the certainty that worker health will be prioritised.

“Work-related health issues kill between 750 and 900 workers each year, and hospitalise a further 5000-6000 workers. It is critical that we do everything we can to protect workers from the impact of work on health.

“Everyone has the right to expect a safe workplace and to be able to come home safely to their family at the end of every day.

“There is simply no need for engineered stone. It is a fashion product and there are safe alternatives on the market. Workers’ lives shouldn’t be traded off for a trendy kitchen,” said Wagstaff.

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Job cuts will severely compromise ACC services

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is dismayed at the announcement that there will be 300 jobs cut at ACC.

“There is no doubt that such sweeping job cuts will severely compromise ACC’s ability to essential deliver services that New Zealanders rely on,” said NZCTU President Richard Wagstaff.

“These job losses will lead to less reliable services, undermining ACC’s ability to support people in need. It will now be much harder for people to access their entitlements and get the help they need to recover from injuries.

“It is deeply worrying that there are significant cuts to the Injury Prevention teams, which are focused on ensuring accidents and injuries don’t happen in the first place. Given that WorkSafe has also pulled back from injury prevention due to lack of funding, there will now be no agency leading on preventing workplace injuries.

“Working people deserve better than this. Everyone has the right to expect a safe workplace.

“The Government’s pursuit of tax cuts at whatever cost has directly led to the gutting of the public service, which will cause irreparable harm to New Zealanders who rely on timely and efficient services,” said Wagstaff.

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Gisborne fishing tragedy

Source: Maritime Union of New Zealand

The Maritime Union has offered its sympathy and support to family and friends and the Gisborne community following the death of three local fishermen.

Police have confirmed three people were found deceased overnight on the Mahia Peninsula coastline.

Maritime Union of New Zealand National Secretary Carl Findlay says it appears the community and the rescue teams made every effort they could in very difficult weather conditions to find and help the fishermen.

“This is a sad reminder of the dangers of the New Zealand maritime environment.”

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Axing of Pay Equity Taskforce will entrench inequities for working women

Source: Council of Trade Unions – CTU

The NZCTU Te Kauae Kaimahi is deeply disappointed by confirmation of the Public Service Commission that the Pay Equity Taskforce will be disestablished.

“The disestablishment of the Pay Equity Taskforce will result in gender and ethnic pay disparities persisting as pay equity claims go unaddressed,” said NZCTU President Richard Wagstaff.

“It sends a message that the Government is washing its hands of responsibility for ensuring that working women aren’t being discriminated against in their pay. This will mean that government abandons its role as a leader on pay equity.

“Government has an obligation to ensure that all communities are free from discrimination, paid fairly and have good incomes. That means addressing pay equity claims as a matter of urgency.

“The Taskforce was already understaffed and claims already taking too long. This decision will greatly compound the problem and undermine the progress toward pay equity in the public sector.

“The Taskforce is still needed. There are numerous claims still unresolved, and all resolved claims still need to be reviewed regularly, which means there must be a continued role for government.

“Everyone deserves good work that pays well, and that means we must not tolerate anyone being paid less because they work in industries that have been historically undervalued by virtue of being female dominated,” said Wagstaff.