Category: Unions

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Government must deliver increases to minimum wage that keep up with inflation

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is calling on the Government to deliver minimum wage increases that keep up with rising costs, in response to new inflation data released by Stats NZ today.

The new data shows that food and housing prices have risen by far more than the minimum wage will. Food price inflation was at 4% for the year to January 2024, while rental price inflation was at 4.5%. This contrasts with the decision to only increase the minimum wage by 2%.

“This new data confirms that the Government’s decision to only adjust the minimum wage by 2% is in fact a cut in real terms, and this will put further pressure on the ability of families to get by during the cost-of-living crisis,” said Wagstaff.

“Wages not keeping up with inflation has a significant impact on workers having enough to afford rent, pay the bills, put good food on the table, and buy their kids what they need.

“All New Zealanders benefit from minimum wage increases because they drive up wages, local economies prosper, and our communities are safer and healthier.

“The NZCTU has launched a petition calling on the Prime Minister and the Minister of Workplace Relations to do the right thing and deliver minimum wage increases that don’t see New Zealand workers fall further behind.

“The minimum wage should equal the Living Wage, but at the very least, the Government must deliver annual increases to the minimum wage that lift low-paid workers’ incomes in real terms,” said Wagstaff.

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Cook Strait connection in limbo

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says pressure is mounting on the Government to provide leadership on the Cook Strait ferries.

One year ago, then National Party opposition Transport Spokesperson Simeon Brown described the Cook Strait ferries as the “the biggest pothole on State Highway 1” after multiple technical problems with ageing ships.

In August 2023, he then described the current ferries as causing “significant safety concerns.”

Maritime Union of New Zealand National Secretary Craig Harrison says the future of Cook Strait has now become a “black hole not a pot hole” in our transport network, due to the Government’s demolition of the iRex project.

“Despite his strong criticisms prior to being elected, we have not heard a peep out of Transport Minister Simeon Brown recently about the future of the Cook Strait as a key transport link.”

He says the new Government’s iRex decision in late 2023 has left the future of the interisland ferries in limbo.

Mr Harrison says many industry figures and commentators from across the political spectrum have expressed concerns about the future of the Cook Strait connection and the logic of the Government decision.

He says there is a danger that New Zealand will end up with a cheap, sub-optimal ferry option that will see ongoing disruption and safety issues.

“The long term cost may end up a lot higher.”

Mr Harrison says the Government may still have to walk back its hasty call to can the new ferries and terminals.

KiwiRail will appear before the Transport and Infrastructure Select Committee at Parliament on Thursday 15 February.

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Government’s policies will make it harder for unemployed workers

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff is concerned that the Government’s welfare and employment policies will make it harder for people who lose their jobs, following the release of new employment data.

The data shows that unemployment rose for the December 2023 quarter, to 4%, and the Treasury and Reserve Bank both expect it will rise to 5% by the end of this year. In real terms, that means a further 60,000 people will be unemployed, compared to 2022.

“Unemployment is always stressful, but the Government’s recent policy decisions will make things even more difficult for displaced workers,” said Wagstaff.

“The Government has ended work on the income insurance scheme, which would have provided displaced workers with up to seven months of financial support after losing their job, at 80% of their salary or wages. This would have helped to reduce the high rate of wage scarring – the pay cut that workers often experience as a result of losing their job – that New Zealand has compared to our OECD peers, and supported workers to upskill and retrain.

“The Government has announced its intention to introduce new sanctions for welfare recipients. But the evidence is clear that this punitive approach to welfare doesn’t work, and only serves to compound social harm and increase poverty.

“The Government has also extended 90-day trials to businesses of all sizes, meaning that many job seekers who do find work will feel insecure in their employment for the first three months. As with their other policy decisions, there is no evidence that 90-day trials increase employment.

“Instead of helping people through the cost-of-living crisis, the Government’s policies are further reducing employment security, and increasing poverty,” said Wagstaff. 

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Successful resolution for Australian port workers at DP World 

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand has offered its congratulations to the Maritime Union of Australia for the successful resolution of the industrial dispute at DP World terminals.

The Maritime Union of Australia and Dubai Ports reached an in-principle agreement last week, subject to endorsement by the MUA membership employed at Dubai Ports in Australia.

The agreement, which replaces an earlier agreement that expired in September 2023, is for a four-year term and delivers fair pay, safety and fatigue management measures, and provides job security and a fair work-life balance for Australian wharfies.

Maritime Union of New Zealand National Secretary Craig Harrison says Australian port workers at DP World had the full support of New Zealand maritime workers and had persevered to achieve a good outcome.

Mr Harrison says it is concerning that a proposed port privatization at Port of Auckland features DP World as a potential terminal operator. 

He says DP World has come under increasing scrutiny in Australia and elsewhere for its business practices.

According to recent polling carried out on behalf of the Union, the great majority of Aucklanders support keeping the Port of Auckland in public ownership.

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Te Tiriti must continue to be honoured and advanced in our secondary schools

Source: Post Primary Teachers Association (PPTA)

“Honouring our Te Tiriti obligations has resulted in huge improvements in ākonga Māori achievement,” says Te Aomihia Taua-Glassie, PPTA Te Wehengarua Māori vice president. “The establishment of kura kaupapa Māori, wharekura and kura a iwi in our public education system has enabled so many rangatahi to thrive and achieve amazing results through the medium of te reo Maori.

“We have a culturally responsive context for learning, and Te Ao Haka, pōwhiri, whakatau led by rangatahi with the support of their mana whenua, Ngā Manu Kōrero and the frequent use of te reo Māori are part and parcel of everyday school life for all our ākonga today – hoino we can still go further.”

PPTA Te Wehengarua president Chris Abercrombie said secondary teachers supported the growth of a secondary education system that promotes and enhances Māori success as Māori. “Schools must be places where ākonga Māori and their whānau feel a sense of belonging and connection.”

In 1974, the then PPTA Te Wehengarua national executive approved the recommendation from the Māori Language Panel to support the principle that the course of every pupil in New Zealand should contain elements of Māori culture. “Fifty years on we have mana ōrite mō te mātauranga Māori giving equal status for mātauranga Māori in NCEA. We have a history curriculum that educates all rangatahi in Aotearoa New Zealand about our colonialist past and its devastating long-term effects on Māori, and that involves working with local marae to get a real understanding of local history. We have other curriculum changes that connects ākonga Māori to educational content that validates who they are as Māori.”

Local iwi and hapū need to be supported by the Ministry of Education so they can engage with schools to develop resources that will ensure mātauranga Māori is authentic and endorsed. School leadership should be able to access professional learning and advice on how best to partner with mana whenua to achieve an authentic Te Tiriti relationship.

Te Aomihia Taua-Glassie says secondary teachers are deeply concerned that 50 years of real progress could be about to be rolled back significantly by this government through changes to the curriculum, a refusal to value Te Reo Māori and a refusal to acknowledge that to get equitable outcomes, Māori rangatahi need approaches that reflect partnership and Te Ao Māori.

“Along with many of those who will gather at Waitangi tomorrow, secondary teachers are apprehensive about the government’s stance on Te Tiriti and the implications for our motu, particularly our education system and our ākonga. We urge the government to reflect on all that has been achieved through our affirmation and advancing of Te Tiriti.

“I kī mai to matou tupuna no Te Taitokerau, Tā Hemi Henare, “Kua tāwhiti kē tō haerenga mai, kia kore koe e haere tonu he nui rawa ō mahi kia kore e mahi tonu.”

(As the famous Māori leader, Sir James Henare, said, ‘we have come too far not to go further, we have done too much not to do more’.)

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Minimum wage decision a signal of what this Government really thinks about workers

Source: Council of Trade Unions – CTU

The decision today by the Government to cut the minimum wage in real terms is a sign of what they think about workers, said CTU Economist Craig Renney.

“All New Zealand workers have the right to a liveable income to support their families – they deserve to be paid a Living Wage,” said Renney.

“The Government is increasing the minimum wage by a paltry 2% to $23.15. This falls well short of the Living Wage rate, which is currently $26. That is simply heartless at a time when so many are doing it tough.

“Inflation is currently 4.7%, and a 2% increase means in real terms cuts for the lowest income workers across New Zealand. Taking money away from hundreds of thousands of workers during a cost-of-living crisis defies understanding and is poor economics.

“The proposal wasn’t even supported by MBIE officials, who recommended a 4% increase, rather than a 2% increase. That’s an annual difference of $944.32. If the minimum wage had kept up with inflation, that would have been a $1,274 difference annually – or $24.52 a week.

“How are workers meant to keep up with rising food and rent costs if the Government is cutting their wages in real terms? This is a Government that doesn’t seem to know how difficult life is for working people and those on low incomes. It’s simply out of touch and focused on tax rises for the wealthiest people and landlords instead.

“Such an inadequate increase may save some New Zealand businesses a few dollars, but it will cost everyone more in the long-run. It will mean higher payments in tax credits. It will mean higher support for rental payments. It makes no sense from an economic and or fiscal perspective.

“The Government should do the right thing and deliver a minimum wage that doesn’t see New Zealand workers fall further behind,” said Renney.

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New Zealand maritime workers support Australian workers at DP World

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says it is backing the Maritime Union of Australia in their dispute with DP World 100%.

Maritime Union of New Zealand National Secretary Craig Harrison says Australian port workers at DP World have the full support of New Zealand maritime workers.

Industrial action has occurred at DP World terminals in Sydney, Melbourne, Brisbane and Fremantle as port workers press for wage increases to counter cost of living hikes. 

Mr Harrison says it is hypocrisy for employers to be attacking workers seeking reasonable wage increases, while companies like DP World ratchet up giant profits for their owners – in this case the Royal Family of Dubai.

He says there are strong ties between maritime unions in Australia and New Zealand.

Mr Harrison says DP World has come under increasing scrutiny in Australia and elsewhere for its business practices.

Although one of Australia’s two largest port operators, a recent report found DP World has paid no tax in Australia despite generating revenue of more than AU$4.5 billion over eight years.

Mr Harrison says it is very concerning that the proposed port privatization at Port of Auckland features DP World as a potential operator. 

He says the behaviour of DP World in Australia by pushing up massive container surcharges, tax practices, and poor workplace relations, were all red flags. 

“Is this the kind of corporate operator we want to give monopoly control of Port of Auckland to?”

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Port strike in Bluff called off

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says a strike in the port of Bluff has been called off.

Workers at port company Southport were planning to walk off the job this morning for 48 hours, but last minute negotiations yesterday resulted in a positive outcome.

Maritime Union of New Zealand National Secretary Craig Harrison says a compromise was reached with the employer around wage increases and other outstanding issues, and will be taken back to the union membership for ratification.

Mr Harrison says the result is a good one.

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NZCTU calls on the Government to protect frontline public services

Source: Council of Trade Unions – CTU

NZCTU Economist Craig Renney is calling on Finance Minister Hon. Nicola Willis to scrap her plan to cut frontline services after she acknowledged today that this is likely to happen.

“In September last year, the CTU showed the areas that were at risk – these included the courts, biosecurity, and cybersecurity. National refused to answer questions at the time, but now reports in the media show this to be true,” said Renney.

“These are frontline services that all New Zealanders rely on. The Government needs to scrap its proposed tax cuts and protect the essential services that keep this country running.

“We are now seeing that it’s even worse than had been advertised at the election. Ministers aren’t taking responsibility for the cuts – that is now the responsibility of Chief Executives. The cuts package now extends to even more departments and public services, as the Government desperately tries to make its pre-election promises work.

“The Finance Minister’s credibility is once again on the line. Her pre-election promise was that as Finance Minister she would “reduce the cost of back-office government bureaucracies with an immediate savings drive across a series of identified government agencies while protecting frontline services.’[1] It’s now very clear that the Minister is breaking her promise to New Zealanders.

“The Government is also claiming that this is part of moving resources into the frontline. This is simply untrue. These cuts are needed to pay for tax cuts that will give landlords thousands of dollars a year while giving those on the minimum wage a couple of dollars a week.

“Aotearoa New Zealand’s population is rising rapidly. Unemployment and the demands on public services will keep increasing. Yet the Government is now no longer ruling out cuts to essential services such as customs, food standards, or search and rescue.

“These aren’t spending cuts to fund new frontline services. Instead, they are cutting to fund their reckless tax cut policy for the wealthiest New Zealanders,” said Renney.

[1] p17 National’s Back Pocket Boost, 30 August 2023

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NZCTU disappointed with disestablishment of Regional Skills Leadership Groups

Source: Council of Trade Unions – CTU

NZCTU President Richard Wagstaff said he was disappointed in the Government’s short-sighted decision to shut down the Regional Skills Leadership Groups (RSLGs), saying it is further evidence of the Government’s lack of a strategy when it comes to vocational education and workforce planning.

“Coming off the back of the reckless decision to disestablish Te Pūkenga, this is another example of the new Government’s slash and burn approach. As with Te Pūkenga, the government hasn’t announced what will be replacing the RSLGs. This will only add to the uncertainty facing the vocational education sector and its workforce,” said Wagstaff.

“The RSLGs, which were set up as part of the Reform of Vocational Education, play an important role in identifying skills and workforce needs across different regions of the country.

“Aotearoa New Zealand suffers from persistent skills shortages and high levels of skills mismatching. This hinders productivity growth and increases the wage scarring experienced by workers who lose their job.

“With unemployment forecast to rise over the next year, we should be looking at how we can support people into good work and help employers find the essential skills they need.

“The NZCTU supported the establishment of the RSLGs as mechanisms for rebuilding New Zealand’s capacity for regional economic development, including skills and workforce planning.

“Importantly, the RSLGs promote worker voice in the development of training initiatives and solutions to persistent labour market problems in different parts of the country.

“Union representatives on RSLGs speak for the interests of our members as learners and give workers a voice in the skills and workforce development strategies of their regions.

“While the new government has been quick to first disestablish Te Pūkenga, and now the RSLGs, we are yet to hear what its alternative plan is for vocational education,” said Wagstaff.