Category: Unions

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More investment in schools and young people needs to be a Government priority

Source: Post Primary Teachers Association (PPTA)

“The findings of the Education Review Office (ERO) report, Time to Focus, about student behaviour will, sadly, come as no surprise to anyone working in a school,” says Kate Gainsford, Chair of the Secondary Principals’ Council.

“Principals and teachers have reported a significant increase in behavioural incidents and issues in the classroom and school grounds have increased significantly over the last few years.

“Our schools are a mirror of our communities and the issues being experienced in our communities are brought to school by young people every day.

“While the scale and complexity of social issues increases, schools are expected to do more – but without a corresponding increase in resources. It’s not all about money for schools, it’s about service and a workforce to provide the necessary service.”

Kate Gainsford said schools endorsed the report’s call for a consistent set of expert supports and programmes. “We need more investment in effective support to help the better management of behaviour including timely access to mental health professionals for young people who need this. Parents, young people and schools need this, and the call for this
has not seen corresponding movement in pace or volume of service provision.

ERO’s findings support the Secondary Principals’ Council 2021 report into staffing of schools which highlighted issues with insufficient provision of government resourcing for pastoral care and the negative impact particularly on larger schools. 

Chris Abercrombie, PPTA Te Wehengarua president, says secondary teachers have identified the need for  more help with student behaviour for some years. “This is why we claimed for more pastoral care staffing as one of the key elements of our collective agreement last year.

“Next year secondary schools will be receiving additional resources for pastoral care staff as part of our recent collective agreement settlements. Although this will be gratefully received it is under half of what is needed to make a real impact in secondary schools and the system has been too slow to respond.

“The Minister of Education should take note of the impact of challenging student behaviour on attendance and student achievement in the report. Initiatives to support the needs of young people need to be of a high quality, reliable and accessible. This must be a priority – not channelling funding away into charter schools.”

“Teachers want to spend more time teaching and helping learners.

“Schools rely on parents and families to be able to follow up mental health and health concerns with health practitioners, and learning difficulties with specialist services within the Ministry of Education. Too often these services receive only leftovers in budgets, yet investment in our young people should be front and centre of Aotearoa New Zealand’s development plans.”  

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Unions deliver MPs petition to stop real terms cuts to the minimum wage

Source: Council of Trade Unions – CTU

Today a delegation from the union movement delivered a petition of nearly 9,000 people calling on the Government to commit to annual minimum wage increases that keep up with rising costs.

“This Government is effectively cutting the wages of low-income families by not increasing the minimum wage to keep up with rising costs. This is on top of getting rid of free prescription fees, scrapping support for public transport fees, and increasing benefit sanctions,” said CTU President Richard Wagstaff.
 
“This petition sends a clear message to this Government that all workers have the right to a liveable income to support their families.
 
“We appreciated hearing from workers in homecare and retail at Parliament today about the reality of what it’s like living on the minimum wage. In response, Labour, Green and Te Pāti Māori MPs committed that they would deliver significant increases to the minimum wage when they are in government.
 
“The Government has a responsibility to ensure that all workers have enough to afford rent, pay the bills, put good food on the table, and buy their kids what they need. This is even more true during a cost-of-living crisis.
 
“How are workers meant to keep up with rising food and rent costs when the Government is cutting their wages in real terms?
 
“All workers should be paid more than the Living Wage, but at the very least, the Government must ensure that the minimum wage is enough to get by. Pushing wages backwards at a time when so many are doing it tough is simply heartless,” said Wagstaff.

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Budget Policy Statement still missing in action

Source: Council of Trade Unions – CTU

The Government has released its Budget Policy Statement today, showing worsening economic forecasts with inflation falling more quickly than expected, caused by unemployment rising and growth stalling. However, the statement lacks information on what the Government intends to do in response, said CTU Economist Craig Renney.

“The Budget Policy Statement is supposed to provide guidance and certainty around the forthcoming Budget. Sadly, both are in short supply,” said Renney.

“The Government has replaced objectives that looked to lift New Zealanders’ wellbeing and tackle climate change with cuts to public services. Kiwis deserve better than this.

“By not providing any information on forthcoming spending allowances, we have no insight into how the Government is planning to invest in New Zealand. This note reads like 8 pages of excuses for not doing your homework.

“Promises to get back to surplus have gone out the window. After fearmongering for so long about our debt position, the BPS accepts that our debt levels are within the bounds of “prudence on debt sustainability”.

“This is the time for Government to be acting responsibly by investing in New Zealand and raising its productive future. However, instead they appear to be acting pro-cyclically – cutting investment and spending at a time when the economy is in the doldrums.

“The Government has no plan for sustainably growing the economy or creating good jobs. There is no case made for tax cuts, particularly tax cuts for higher-income earners or landlords. There is nothing to meet the demands of a growing population with higher needs. Instead, it’s a return to the rhetoric that justified sustained underinvestment in the public realm.

“New Zealanders who read the Budget Policy Statement will find it short of information and short of ideas. It’s not surprising that analysts weren’t allowed to access the Government lock-up for this information release, as they would have found little to say,” said Renney.

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The contracting model is wrong for NZ Post – E tū

Source: Etu Union

E tū is disappointed with NZ Post’s decision to move mail delivery into the parcel network, which will mean workers are moved to a contracting model.

NZ Post announced the details of the plan today, which is a response to declining mail volumes.

Postal worker and E tū delegate in Dunedin, Terry Howells, says workers are upset by the changes.

“I think it’s the end of an era for post itself, and people are quite downtrodden about it,” Terry says.

“A lot of posties took this job because it’s a good lifestyle, and this will be a major disruption to that. I can’t see it working in the long run.

“Being directly employed comes with all the employee benefits we’ve built up over time. I don’t think contractors are treated well here at all, the contracts are tough. Going into that side would be horrible, really. We can see it leading to exploitation, particularly for migrants.”

Terry says that affected workers are still looking for answers.

“It’s difficult to know what the next steps will be, we need more concrete information. The company needs to be a bit more upfront on what direction they’re going in. That’s a crucial part of the transition ahead.”

E tū Negotiation Specialist, Joe Gallagher, says NZ Post contracting out mail delivery will make them disconnected from the community.

“Having directly employed posties not only gives workers better protections, it also means NZ Post has a real stake in all parts of the delivery of the services,” Joe says.

“Passing the buck to a network of contractors means we’ll see a ‘race to the bottom’ with perverse incentives to make the most money, not deliver the best service. We see examples of this across many different industries.

“Mail delivery volume might be declining, but a robust network remains a core part of our society’s infrastructure.”

Joe says that while the union continues to oppose these changes, E tū and NZ Post are both committed to a ‘just transition’ for affected workers.

“The good news is that due to a long history of strong union membership, NZ Post workers are in a better position to shape their own future and all parties can work together to minimise the harm to affected workers.

“When people lose their jobs, or their jobs become more precarious, it affects the whole community. We’ve been proud of the work we have done in the past to ensure workers who are affected by changes in the post system are on the best footing possible, for example by helping them into new work through the E tū Job Match programme.”

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More questions for the Government’s tax changes as costs grow

Source: Council of Trade Unions – CTU

The Government should reconsider the delivery of their tax plan, as costs continue to escalate, said CTU Economist Craig Renney.

“Our analysis, using the latest data available from IRD and the Treasury, indicates that the cost of the income taxation changes is now half a billion dollars more than National indicated in its pre-election fiscal plan,” said Renney.

“All up, the modelling undertaken by the CTU shows that the cost of indexation is now likely to be $9.5bn over the next four years – against the $9bn budgeted by National.

“The CTU analysis should alarm New Zealanders. It should also worry anyone who genuinely believes in value for money or in social investment.

“The analysis does not consider any additional increases caused by a rising population, which will add to the costs. Over the next four years, if the population rose at the same rate as in the pre-COVID period, this would likely add a further $300m to the cost of the income tax package.

“These costs are in addition to the many problems already being faced by the plan. $3bn for landlords – up $800m. $1.3bn missing from cutting welfare payments. Casino taxes bring in only $150m instead of $750m. The Government is relying on more than $1bn of tobacco taxes, and not delivering promised Working for Families changes, to prop up the package.

“Overall, the tax plan is now likely to be billions of dollars short of its overall revenue target. The only way left to fill the gap is through even deeper cuts to public services and public investment. Already we are seeing investment in areas like disability support, free school lunches and pay for the Police suffering, while landlords are guaranteed a $3bn payday.

“These are just part of many damaging consequences that New Zealanders are now seeing from the Government’s reckless commitment to tax cuts.

“The Budget Policy Statement is on Wednesday, and the Government should use the opportunity to show New Zealanders how it is going to make its plans work, and what it is going to cut to deliver them. Better still it could use that opportunity to abandon its plan and invest in all New Zealanders, not just a few,” said Renney.

Costed National Pre-Election Estimate Revisions Difference in cost
New Analysis
Income Taxation – Direct  $9bn  $9.5bn  $490m
Income Taxation – Population $0 $300m  $300m
Known Costings
Interest Deductions  $2.1bn  $2.9bn  $800m
Foreign Buyer Tax  $3bn $0 $3bn 
Commercial Building Depreciation $2.1bn  $2.3bn   -$200m
Gambling Tax  $716m  $151m  $565m
Brightline Adjustment  $200m  $202m  -$2m
Climate Dividend  $2.36bn  $2.05bn  $315m
Close Labour Programmes $2.12bn  $2.62bn   -$497m
Benefit Indexation $2.04bn  $670m  $1.37bn
Yet To be Costed
Immigration Savings $492m  $492m $0
Public Service Cuts  $2.38bn  $2.38bn $0
Contractor Savings  $1.6bn  $1.6bn  $0
Abandoned Policies
App Tax reversal $206m  $0m   -$206m
Working for Families Changes $1.4bn  $845m   -$555m
New Revenue
Tobacco Taxation $0 $1.5bn  $1.5bn
Total gap in tax plan $3.83bn
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Ferry debacle means New Zealand is ‘steering blind’

Source: Maritime Union of New Zealand

Confusion around the future of KiwiRail’s Cook Strait ferries has left New Zealand ‘steering blind’ with its main inter island transport link, says the Maritime Union.

The latest development in the ferry saga is a suggestion in ministerial documents that KiwiRail might exit the Cook Strait ferries altogether if it is commercially unviable without subsidy.

Briefing documents from the Ministerial Advisory Group and Ministry of Transport have been released to the media under the Official Information Act.

Maritime Union of New Zealand National Secretary Craig Harrison says this scenario is deeply concerning and shows the Government has dropped the ball on transport.

Mr Harrison says he is surprised no one in the Government could foresee the consequences of cancelling iRex project funding last year.

“Within a few months we have gone from looking forward to modern ferries and fit for purpose terminals that would support our economy and producers for decades, to the future of interisland transport and everyone who relies on it being in free fall.”

He says while Strait Shipping currently offer ferry services that complement KiwiRail ferries, the scenario of putting the entire connection in the hands of a single overseas-owned monopoly would be a grave error, and would probably not be viable.

“The idea there is some magic market solution is not credible, because any operator will still have to source and pay for suitable vessels.”

He says the primary focus of interisland ferries should be their importance in the supply chain and the national economy, which included rail capability.

“The Cook Strait is part of the ‘blue highway’ – an extension of our national road and rail links.”

Mr Harrison says the current ferries are nearing end of life and are experiencing ongoing maintenance issues, with potentially catastrophic outcomes.

Interisland ferry Kaitaki lost power on its approach into Wellington Harbour on 28 January 2023, and was left drifting towards the coast in heavy weather with more than 800 passengers and 80 crew on-board. It issued a mayday before managing to restart engines and returning to port.

KiwiRail is now facing a health and safety charge relating to this incident brought by regulator Maritime New Zealand.

“Continuing to lease second hand vessels would still be costly, and mean there will still be ageing ferries on Cook Strait, increasing the risk of mechanical failure, delays, maintenance costs, and safety risks.”

Mr Harrison says the costs of cancelling the project at Korean shipbuilders Hyundai has not yet been confirmed but could run into hundreds of millions of dollars.

A suggestion by KiwiRail that the ferries be built, then on sold in order to try and recoup some of the cost of the cancelled project, was quashed by the Minister of Finance.

However, it has been reported the new Ministerial Advisory Group on the ferries has suggested this could be a potential option to avoid a massive financial loss.

Mr Harrison says further drawbacks include the failure to move to new low-emission technology and the implications for our climate change response.

Globally-recognised Climate Bonds Initiative certification issued to KiwiRail for a $350 million green loan has been revoked due to the cancellation of the ferry purchase.

The Maritime Union view is the Government should review the entire decision to cancel the new ferries and new terminals, says Mr Harrison.

“There is an opportunity to revisit the project, seek cost savings if required, then get on with the only responsible course of action which is a fit for purpose Cook Strait ferry link with modern vessels and terminals.”

He says it is now clear that planned tax cuts are not feasible as essential infrastructure investment has to take priority.

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Government refusal to release charter school information alarming

Source: Post Primary Teachers Association (PPTA)

“We have already made a complaint to the Ombudsman and are about to again, after a series of unsuccessful attempts to get information from the Government about what advice they have received about potential costs of charter schools and their impact on students and communities.

“We are concerned that charter schools could cost taxpayers billions of dollars. It seems that a huge amount of money is about to be poured into a vanity project at the same time as the government says it can’t afford to continue providing lunches for students in need, it can’t complete much needed school building projects and can’t ensure there are sufficient classrooms for schools whose rolls are growing.

“Charter schools are a direct import from the USA and UK and there is no evidence that they work. This is in stark contrast to Associate Education Minister David Seymour’s insistence on evidence being required for Ka Ora, Ka Ako to continue.

Mr Seymour has stated that public schools will be able to convert to charter schools as part of the government policy. School communities deserve to know what the government is planning for their local schools, and the possible impact of this on parents and students.”

Chris Abercrombie says there are many questions the government is refusing to answer, including:

  • How will the government fund teacher redundancies from state schools that convert to charter schools? Our calculations are that this cost could be into the billions.
  • What arrangements will be put in place for the sale, rental or transfer of property to converted charter schools and how will transfer of property be accounted for in the government’s assets? Will the community still have access to this property?
  • What provision is being made for students whose local public school is converted to a charter school which they do not want to attend? How will school zones and impacts on neighbouring schools be managed?
  • How much funding will be cut from the state and integrated school system to fund this vanity project?
  • What are the financial risks are to the government and what the risks are to learning and access for students.

“The fact that all but one of the remaining schools involved in the previous charter school experiment were able to be re-integrated successfully into the public education proves overwhelmingly there is no need for this hugely expensive vanity project.

Aotearoa New Zealand simply cannot afford this untested experiment on the education of our children and young people – we call on the Government to be honest and come clean with New Zealanders about their plans.”

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GDP Numbers make case for change – but not tax cuts

Source: Council of Trade Unions – CTU

GDP numbers released today show that the economy shrank into a technical recession with the economy declining by -0.1% in the December 2023 quarter, following a -0.3% decline in the September quarter. GDP per capita also fell by 0.7%, continuing its recent run of declines.

7 out of 16 economic sectors saw annual declines in output, including most of the goods producing sectors like manufacturing and construction. Public administration increased its output, caused mainly by the general election during this period. On a quarterly basis, New Zealand now finds itself alongside the UK in having negative growth. Australia (+0.2%), the US (+0.8%), Japan (+0.1%), and the OECD average (+0.3%) all saw positive economic growth. 

 “This data confirms what many other economic indicators have been showing – that the economy is slowing, and growth is well below its historical trend. That should worry working people, as lower economic growth generally leads to higher unemployment and lower wage growth” said CTU Economist Craig Renney.

“The data illustrates the current weakness in the economy. While we shouldn’t over interpret one datapoint, the broader economic data points to a stronger case for some timely investment in the economy. This would both tackle our chronic infrastructure gap, enhance our low productivity, and both support business investment and boost flagging demand. The worst way to achieve that would be with tax cuts.

“This should act as a wake-up call about our economic direction. Those countries with an active economic plan based on investment – like the US – are seeing strong economic growth and employment growth. This Government is heading in the opposite economic direction. Central government expenditure in New Zealand fell -2.2% on average across the past year, so excuses about government spending shouldn’t hold any weight.

“This is not the time for cuts, it’s the time for investment that will benefit all New Zealanders – not just a select few,” said Renney.

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CTU to Support Uber Drivers Rallying For Basic Workers’ Rights

Source: Council of Trade Unions – CTU

The NZ Council of Trade Unions will be supporting Uber drivers as their legal fight for basic workers’ rights, including even being paid the minimum wage, heads to the Court of Appeal.

Drivers are holding a rally outside the Court of Appeal in Wellington at 9am today, as the court begins its appeal against the Employment Court verdict in 2022 (in a case taken jointly by FIRST Union and E tū) that four drivers were permanent employees, not contractors.

“Uber drivers have been the denied the fundamental rights that most of us are able to take for granted – they aren’t even being paid the minimum wage. It’s wrong and needs to change,” said Acting CTU President Rachel Mackintosh.

“As a country we must support the drivers in their fight against a multinational company that is trampling on their legal employment rights.

“This case is relevant not only to gig or platform workers, but to all working people. All workers who have been misclassified as contractors have the right to test their employment status in court, and it should worry us all that this Government is threatening to take that right away.

“The distinction between an employee, who works for an employer under their control and direction, and a genuinely independent contractor (who carries out a business in their own right) is an essential one that the court has an important role in upholding.

“The difference between a contractor and employee is one of substance. The uber drivers who are at the heart of this case are, in substance, employees. They are not independent contractors; they have no ability to bargain contracts and are significantly under the control of the platform provider, who dictates their pay and punishes them if they try and take control of their hours.

“Gig economy workers exist in an employment context that heightens their vulnerability to unfair treatment. That’s why we need to reform employment law to protect their rights, not undermine them as this Government has threatened,” said Mackintosh.

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E tū TVNZ members launch Save Our Stories campaign – E tū

Source: Etu Union

E tū, the union for journalists and media workers in Aotearoa, is today launching a campaign to stop the proposed changes at TVNZ.

The Save Our Stories campaign is a response to last week’s announcement of a proposal for significant cuts across the workforce and the programmes produced, including cutting the shows Fair Go and Sunday, gutting Re: News, and cutting the Midday and Tonight bulletins.

E tū Negotiation Specialist, Michael Wood, says the Save Our Stories campaign is about everyone coming together to protect the media platform.

“We’re bringing together workers, viewers, and supporters to remind TVNZ of their purpose and responsibilities. TVNZ isn’t just some business, it’s a vital part of our society and Kiwis need a strong TVNZ to tell Aotearoa’s stories and hold power to account.

“This is about everyone – every single New Zealander is a stakeholder in this, so we invite everybody who wants to build and protect a strong media landscape to support the campaign.”

The campaign has been launched with a video featuring people from across TVNZ’s workforce, and an open letter.

“So many people have reached out to our union to show their support for TVNZ workers and ask how they can help. From prominent public figures, to people whose lives have been changed thanks to TVNZ’s coverage, to dedicated viewers who don’t want to see their favourite shows get the axe.

“These people can help by signing the open letter, sharing our video, and sending the message to decision-makers that our media is worth protecting.”