Workers should worry about new threat to workplace protections in Minister’s speech

Source: Council of Trade Unions – CTU

Minister Brooke van Velden’s speech to the Auckland Chamber of Commerce last night is another alarming sign of the Government’s low regard for workers’ basic rights.

“The Minister appeared to endorse proposals that would strip workers of essential basic workplace protections,” said Acting CTU President Rachel Mackintosh.

“The union movement wishes to speak urgently with the Minister about these remarks which follows the indecent haste to scrap Fair Pay Agreements and reinstate 90-day trials.

 “It is particularly concerning to hear that the Minister wants to review health and safety law. New Zealand has an appalling health and safety record, with approximately 17 workers killed as a consequence of their work every week. Every 15 minutes a worker suffers an injury that requires more than a week away from work. The lessons from Pike River tell us that we need stronger health and safety law, not lighter touch regulation. Nobody gains from that.

 “The Minister also highlighted contractors as an area where ‘certainty’ was needed. Right now, workers can go to court to show that they are employees – which is what Uber workers did. The Minister and the National/ACT coalition agreement appears to want to take away that right. This would strip essential protections such as leave, sickness, ACC, and more from thousands of the most vulnerable workers.

 “We’re also appalled to hear the Minister complaining about the advances that have been made for workers in recent years. Increasing the minimum wage occurred while we had record-low unemployment. Sick leave entitlement increased to match Australia. Paid Parental Leave increased to 26 weeks. These are all good things for workers, and their families. They should be celebrated, not used as reasons for complaint.

 “The Minister set out a vision for the economy built on flexibility – the same language was used in the early 1990s by Jim Bolger and Ruth Richardson to strip workers of so many protections.

“If she has her way, this flexibility will come from working people losing their rights, their health, and their terms and conditions of employment. This isn’t a vision for a better economy, it’s a prescription for the kind of low wage, low productivity economy we should be leaving behind. The Minister has recently refused to engage with workers representatives, we would urge her to reconsider.” “We will be outlining our concerns to the Minister, and requesting a discussion on her policy agenda  and how it will impact working people.”

Landlord Tax cuts cost explodes – as does Government’s Tax plans

Source: Council of Trade Unions – CTU

Changes to taxation for landlords have blown out in cost and taken the Government’s tax plans with them said CTU Economist and Director of Policy Craig Renney. “At the election, the National party claimed that the return of interest deductibility would cost $2.1bn. Now we discover it’s going to cost nearly $800m more”.

“This Government appears to have its priorities all wrong. It is committed to fattening the wallets of landlords, but it won’t commit to feeding hungry children in schools. There is no economic evidence that shows this tax cut will lead to lower rents. But there is plenty of evidence that nearly $3bn could make a huge difference to the state housing waitlist, or to those seeing their benefits cut in real terms”.

Renney said “This adds to the problems that National had in opposition making its tax plan add up. This blow-out for landlords needs to be added to the $1.35bn missing from welfare indexation savings. The potential $3bn from foreign buyers has gone, and the cost of indexing income tax changes is likely to be much higher than forecast.”

“This will likely mean deeper cuts to essential public services to pay for this plan. That in turn will impact every community around New Zealand. These are huge sums of money that could be invested in those with the very highest needs. Instead, it’s simply going to inflate the housing market again and force first home buyers to the sidelines”.

Renney said “It’s not too late to change. This tax change will go through the House very soon, but the Government could withdraw the bill and explain to New Zealanders why nearly $3bn needs to be spent in this way, instead of rebuilding the 350 schools that have been paused. It’s time to change track and invest in New Zealand, not landlords. 

Govt must commit to follow Australia’s lead on pay gap reporting

Source: Council of Trade Unions – CTU

NZ Council of Trade Unions Secretary Melissa Ansell-Bridges is marking International Women’s Day by calling on the Government to implement mandatory ethnic and gender pay gap reporting and follow Australia’s lead who recently released their first round of mandatory reporting.

In 2023, the National Advisory Council on the Employment of Women, acting as New Zealand’s Pay Transparency Advisory Group, recommended that a mandatory reporting system be adopted to help lower the ethnic and gender pay gap and increase transparency. The previous Government agreed to introduce legislation, but this did not occur before the election.
 
A mandatory system was supported at the time by the National Party and employer organisations such as the EMA.
 
“The Government needs to live up to their words in opposition and introduce legislation that requires pay gap reporting,” said Ansell-Bridges.
 
“We know that greater pay transparency through mandatory reporting will empower women and all working people to improve their pay.
 
“While the gender pay gap in Aotearoa New Zealand has fallen significantly since 1998, it is unacceptable that women are still paid 8.6% less than men. The gender pay gap for wāhine Māori, Pacific and Asian women, and disabled women is significantly higher.
 
“No one in New Zealand should suffer the indignity of pay discrimination due to their gender or ethnicity.
 
“Government has a chance to significantly improve the standard of living for women across the country by following expert advice and Australia’s lead. They need to take it,” said Ansell-Bridges.

TVNZ workers concerned with company’s process and will fight proposed cuts – E tū

Source: Etu Union

E tū, the union for media workers in Aotearoa New Zealand, are alarmed by TVNZ’s proposal to cut up to 68 jobs, and are worried there won’t an adequate process for working through this proposal.

TVNZ has told their employees that people will find out if they are affected today, with more specific details to come tomorrow. It is expected that Fair Go, Sunday, Tonight, and Re: are all at risk.

One E tū member at TVNZ says that workers are particularly feeling the pressure around not yet knowing their fate.

“It’s the uncertainty right now around what is proposed that’s the hardest for us,” they say.

“Programmes like Fair Go, Sunday, Tonight, and Re: are well-respected, and continue to be a crucial part of keeping people informed about critical issues that affect their real lives. We are hoping for the best, for the people who watch and the people who make the shows.”

E tū Negotiation Specialist, Michael Wood, says E tū will be challenging the cuts both in the interest of affected members and the wider public who rely on a well-functioning media.

“TVNZ has a responsibility, not just to the Government as sole shareholder but to all New Zealanders, to lead a positive vision for the future of media,” Michael says.

“Our members are deeply concerned that there is no clear strategy developed to protect the TV functions at the heart of the whole TVNZ enterprise.

“As we’ve all recently heard about the decision to close Newshub, it is more important than ever to protect and enhance our local media. TVNZ’s proposal is to do the opposite. Our members are passionate about their work and know the importance of a strong Fourth Estate.”

The company has indicated to the union that they will only open consultation for a very short period of time. Michael says that the consultation process must be genuine.

“Giving workers just a few working days to understand and give feedback on this proposal would be simply ridiculous.

“The workforce at TVNZ are the people best placed to work with the company to solve the problems and find a way forward that protects the vital role they play in our media landscape. In the past, E tū has worked with the company through change processes to successfully protect jobs, maintaining a strong platform for telling Aotearoa’s stories.

“We need to do this again, and it starts with the company engaging, and not dictating. They cannot make the best-informed decisions without a genuine and thorough consultation.

“Every New Zealander has a stake in this decision, as it will have a huge impact on the quality of public media. TVNZ and the Government, as the sole shareholder, must take a wider view that reflects the importance of this platform for everyone.”

ENDS

Public investment in New Zealand fails to meet growing need

Source: Council of Trade Unions – CTU

Today the CTU has released its report Investing in a growing population, which shows that up to an additional $19.9bn of public goods and services will be needed to service possible population growth over the next four years. This is before the Government’s planned cuts of $2.4bn.

The report examines the current levels of population growth, and forecasts from the Treasury of expected population change. We already know that we have accumulated a significant public infrastructure gap in Aotearoa. A growing population will add to these pressures.

 “A growing population will mean growing service and infrastructure needs. If we fail to pay for this now, we will pay far more down the line in higher costs and lower productivity. A responsible government would recognise that and make the essential investments,” said CTU Economist Craig Renney

“New Zealand faces the prospect of a significant investment gap opening up in just 4 years. Instead of making sure that everyone in New Zealand has access to the services they will need, the Government’s lack of investment will likely mean that Kiwis will face more an underfunded and overstretched public sector,” said Renney.

In order to understand the potential scale of the challenge ahead, the CTU has forecast population change in three scenarios:

  • The HYEFU forecast
  • The pre-Covid Annual Average growth rate (1.96%)
  • The Stats NZ December 2022-23 rate (2.81%)

Between 1994 and 2019, real investment per capita in New Zealand increased on average 1.16% per year – a period including many changes in government. None of the scenarios examined achieved that level of change – in fact 2 of the three scenarios see real per capita investment fall.

If the population grows by its pre-Covid rate, then the gap in investment needed to maintain current levels of real per capita investment is $7.9bn. This rises to $19.9bn if current levels of population increase are maintained. Cuts would add to this shortfall.

“If investment levels are not maintained, then we will be asking every dollar of public expenditure to go further and further. This will result in longer waitlists for services such as healthcare. It will mean less being invested per child in education. It will mean access to public services will become harder and harder for those who rely upon them,” said Renney.

 “Being fiscally responsible is as much about investing where needed, as well as getting the books into surplus. It’s time for a rethink.

“We have a Budget in May, and the Government could use the money that it is currently proposing to give to landlords and higher income earners to help close this gap. Budgets are about values, and this Government still has time to demonstrate that it cares about New Zealand’s growing population and its growing needs,” said Renney.

Crucial insights for Southland’s business and workforce from the Decent Work Survey – E tū

Source: Etu Union

Southland’s first ever region-wide scientific survey of decent work provides valuable information about the experience of local workers.

The survey was conducted over three months from April 2023, inviting all workers in Southland to participate and share their perspectives about employment in the Southland region.

Participants came from a wide range of backgrounds, working in different jobs, from the largest firms to small businesses.

The Decent Work Survey was commissioned by a broad group of stakeholders, including the Southland Business Chamber, the private sector union E tū, Murihiku Regeneration, and Great South, the organisation responsible for the ‘Beyond 2025’ Southland long-term plan.

The survey design, delivery, and data analysis were overseen by independent experts at Massey University.

CEO of the Southland Business Chamber, Sheree Carey, says the Decent Work Survey has significant benefits for the members of the broader business community.

“By understanding employee perspectives on job satisfaction, workplace culture, communication, and professional development, our members can gain valuable insights to enhance their organisations,” Sheree says.

“This initiative aligns with our commitment to creating more engaging and satisfying work environments, ultimately contributing to a productive and positive workplace culture in Southland.”

E tū National Secretary, Rachel Mackintosh, says hearing the perspectives of workers is crucial.

“We know that workers have excellent insights about their own jobs that can often be overlooked,” Rachel says.

“By working with a wide group of interested parties on this survey, we have given a voice to workers across the region and ensured that their experiences can be properly taken into account for a variety of purposes, especially planning for an uncertain future.”

Bobbi Brown, the Project Lead for Beyond 2025 Southland, recognises the role of workers in the Southland economy.

“Our workforce is the lifeblood of our economy and while our unemployment rate remains very low, our employers are very focused on retaining their current staff while also attracting new people to fill vacancies. These insights are very helpful.”

Key insights:

  • Workers feel they are doing useful and meaningful work.
  • The majority of workers in Southland say their pay is not enough or just enough to meeting their basic living needs.
  • Most workers would immediately struggle to meet the cost of basic necessities if they were to lose their job.
  • Workplace culture is closely associated with management practices and the most frequent reason workers decide to leave or stay in their jobs.

Secondary teachers urge David Seymour to get reality check on school lunches

Source: Post Primary Teachers Association (PPTA)

“The Associate Minister says the programme could be more efficient and seems intent on making severe cuts to it,” says PPTA Te Wehengarua President Chris Abercrombie. “However, schools that I’m aware of, say none of the food goes to waste and they way in which it is delivered has significant benefits.”

Secondary principals have told PPTA that there has been a noticeable improvement in student behaviour as a result of the healthy lunch programme. “They say there has been a significant decrease in the numbers of  entries recorded into student behaviour management systems during lunch and after lunch, which means that students are less disruptive and more ready to learn.”

Chris Abercrombie said teachers strongly discouraged any moves to target the programme to those who needed it the most. “The fact that everyone in the school is part of the lunch programme means there is no stigma attached to it. If it’s targeted, you can guarantee that kids will feel ashamed to access it – and many won’t.”

Another significant benefit of the programme was the local employment it generated in many communities. “This government says it is determined to get people into work – and this programme does.

“Again, we would urge Mr Seymour to go to some schools in Porirua or South Auckland  and talk to teachers and ākonga about the programme, and the benefits of it, before he makes any decisions about it.”

CTU has informed EU of free trade agreement labour law breach

Source: Council of Trade Unions – CTU

The CTU has sent a letter to the European Commissioner of Trade to bring his attention to New Zealand’s disregard of its obligations under the Trade and Sustainable Development chapter of the NZ–EU FTA by the Government’s repeal of Fair Pay Agreements (FPAs). The European Trade Union Confederation are also writing to the Commissioner.

Under the FTA, ‘a party shall not weaken or reduce the levels of protection afforded in labour law in order to encourage trade or investment’. But in the draft cabinet paper prepared for FPA repeal, a rationale given for repeal was that it is ‘crucial to business growth and investment’.
 
“We wrote to Minister van Velden in December 2023 before FPAs were repealed, to warn her of the risks to the NZ–EU FTA. We were deeply concerned that the Minister brushed aside our concerns, illustrating the Government’s intention to disregard the provisions of the agreement,” said Acting CTU President, Rachel Mackintosh.
 
“New Zealand has historically staked its international reputation on being a good faith partner in trade agreements and has been a vocal supporter of the rules-based international order. The Government’s recent employment law reforms run counter to these commitments.
 
“The CTU does not want to see New Zealand be party to an Agreement if we have actively undermined core provisions of it before it’s even ratified. This will negatively impact New Zealand’s international reputation and our ability to pursue and agree other free trade agreements in the future.
 
“Fair Pay Agreements would have supported thousands of some of the lowest paid workers in New Zealand by lifting their wages and setting core industry standards,” said Mackintosh.

Government transport plan fails to provide economic security

Source: Maritime Union of New Zealand

The Maritime Union says the new Draft Government Policy Statement (GPS) on Land Transport 2024–2034 fails to plan for a resilient and secure transport system, putting the New Zealand economy at risk.

The previous Government introduced coastal shipping as a new activity class in its GPS on land transport in 2021.

It invested $30 million in the coastal shipping sector which resulted in new vessels coming onto the New Zealand coast, reducing road congestion, improving resilience, and reducing carbon emissions.

This progress has now ground to a halt, with coastal shipping ignored in the new Draft GPS on Land Transport 2024.

Maritime Union of New Zealand National Secretary Craig Harrison says for the Government to simply leave out coastal shipping is a failure of insight into the long term needs of the transport sector.

Mr Harrison says the lessons of the last few years are obvious.

“We have seen major disruption to New Zealand transport links through the pandemic and natural disasters including cyclones and earthquakes, with regions left isolated and at risk.”

Mr Harrison says New Zealand needs a balanced, multi-modal system that prioritises redundancy and resilience in transport.

“This new draft document notes New Zealand has faced significant challenges from these events, but then ignores the important role of domestic coastal shipping that is now recognised in the industry.”

Mr Harrison says the Government seems to be basing its transport strategy on delivering for its donors, rather than any rational and balanced approach.

“As the rest of the world moves towards low emission, resilient transport modes, and prepares for climate change driven extreme weather events, New Zealand is left exposed and vulnerable.”

He says with the Cook Strait ferry connection in limbo, coastal shipping ignored, and a crisis in seafarer training, New Zealand is moving towards developing world status.

“The Government now has an opportunity to correct course and focus on the future resilience of New Zealand’s economy – or go in reverse gear by promoting a congested, polluted and vulnerable transport system.”

E tū urges Government to support NZ media by passing Fair Digital News Bargaining Bill – E tū

Source: Etu Union

E tū, the union for journalists and media workers, is urging the Government to pass the Fair Digital News Bargaining Bill as an important part of the solution to the problems facing the media in Aotearoa New Zealand.

Last week, it was announced that Newshub and Three will close in June. Recent redundancies affecting Stuff’s sports reporters, and uncertainty about job security across the wider media landscape, demonstrate the revenue constraints that will continue to harm the industry.

E tū senior delegate at Stuff, Tom Hunt, says the Government passing the Fair Digital News Bargaining Bill would be a good balance of supporting the industry while maintaining media independence.

“Government help for the media can and has been appreciated, but it can also be a poisoned chalice. It has given people a weapon to attack us with, and that is understandable, even if the so-called media bias is a fiction,” Tom says.

“But the Government helping to create a level playing field against billionaire-owned tech giants is not a bailout. It is rational, and I can see no reason to stop it unless the Government is afraid of scrutiny.”

E tū National Secretary, Rachel Mackintosh, says the matter is urgent.

“Things will just keep getting worse if we don’t find sustainable approaches to the way the digital age has completely changed how people publish and access news,” Rachel says.

“The Government has one simple action it can immediately take to improve confidence in the news industry in the short term and significantly improve its financial viability in the medium term. That is, it must listen to the calls of basically everyone in the industry and support the Fair Digital News Bargaining Bill.

“This is even more important now, given the way the tech giants have responded to similar moves overseas. They cannot be allowed to bully governments into getting their way – we must stand up for fairness as an international community.”

Rachel is concerned the Government doesn’t appear to understand the importance of a well-functioning media landscape.

“The Government can’t just sit on their hands and allow the Fourth Estate to crumble on their watch, they need to step up now.

“Broadcasting Minister Melissa Lee should be a champion of new ways of raising revenue for the industry, but instead she has been slowing the progress of this bill, now using the development of AI as an excuse for inaction.

“Our country deserves much more serious leadership on this matter.”

ENDS