The Unionist, Issue 95, December 7 2007

The Unionist this week reports on the wage gap with Australia, electoral finance and upcoming Billy Bragg concerts.

Wage gap with Australia didn’t happen overnight

The wage gap with Australia was in the news again this week, with the CTU challenging the conclusions from a report released on the topic.

‘Why is Australia So Much Richer than New Zealand’ was issued by Australia’s Centre for Independent Studies on Tuesday. The report discussed the wage gap and used a number of occupational groups as comparisons, including dump truck drivers, construction lead hands and senior doctors.  Among its recommendations were cutting income taxes, light handed regulation and improving government spending.

Unions have long highlighted the now 30% wage gap with Australia, but have a different way of going about fixing it.

CTU vice president Richard Wagstaff said this week “the wage gap with Australia started opening up many years ago and the less tax, hands off, free market solutions proposed by the Centre for Independent Studies are pretty unimaginative.”

“Dump truck drivers are highlighted in the report.  A report for the transport industry in 2003 showed the problems the industry faced with low wages and poor conditions.  What has that industry done since then to address this?”

According to a Treasury paper wage levels fell from roughly comparable to Australia in the 1980s to 60% of their level by 2002, Mr. Wagstaff said.

“Research on the effects of the Employment Contracts Act in the 1990s on productivity shows that a lot of damage was done to not only wages but the ability to lift productivity on a continuous basis.”

Treasury noted that in 1978, New Zealand and Australian workers had about the same amount of capital per hour worked. By 2002, capital intensity in Australia was over 50 percent greater than in New Zealand. 

“Employers chose the low investment route in the 1990s, and the legacy remains with us.”

“Increased collective bargaining and a greater willingness to talk at an industry level about skills, standards, wages and capital investment are the answers to lifting wage rates with Australia, not a grab bag of lower taxes and deregulation policies outlined in this report,” Richard Wagstaff said. 

Electoral Finance Bill
 
The Electoral Finance Bill was back before the house this week, and will complete its final stages in Parliament early next week.  In an opinion piece this week, CTU president Helen Kelly reminded readers why the law was needed to begin with.  An excerpt is below, and the full column is here.

“Due to problematic drafting of the Electoral Finance Bill, the public focus has inevitably been on the problems with it.  In some cases these were significant, such as those affecting the legitimate role of third party advocacy groups.   

Like many other organisations, we proposed amendments to the definitions relating to third party election activity so that they more carefully targeted electoral speech, rather than wider political activity.

But what has been largely absent from recent public debate has been the very real reasons why we needed change in the first place.

There was a high level of public interest in reform following the last election when we saw millions in secret funding to the two main political parties and a third party spending over $1 million seeking to discredit two political parties and clearly influence the election outcome.

The view of unions was that the principles driving our electoral finance reform should be about limiting the undue influence of wealthy interests on the electoral process, and providing for transparency in the funding and activities of political actors, including third parties.

Unions are upfront about their political activity, and many of our goals for working people can only be achieved through involvement in the political process.

And we defend the right of all groups to have a say in issues that affect them, including through participation in the electoral process.

But there is every reason to be very cautious about defending the rights of wealthy interests to spend millions of dollars procuring electoral objectives.

As the CTU has often quoted recently, international financier George Soros has warned that “perhaps the greatest threat to freedom and democracy in the world today comes from the formation of unholy alliances between government and business.”

And I have a level of suspicion of those who are calling this Bill an attack on democracy under the guise of freedom of speech.  Freedom of expression or freedom of speech through expensive mass advertising are not freedoms that every person can exercise.

The average New Zealand income is around $34,000, and so a third party spending limit of three and a half times that amount needs to be seen in this light.

It is encouraging that there is now going to be some movement on anonymous donations and secret trusts.  There was a strong public expectation of reform in this area."

Billy Bragg Concerts

In addition to playing at the Big Day Out in Auckland, singer Billy Bragg, favourite of many a unionist, will be playing at the Leigh Sawmill in Auckland on January 15 and the San Francisco Bathhouse in Wellington on January 16.  Billy's website has details: http://www.billybragg.co.uk/shows/shows_2008.html 

Events Calendar

Unions Local

Unions Tauranga
Mon Dec 10, 4pm.
Seafarers Centre, Hull Rd, Mt Maunganui. 
garry.parsloe@munz.org.nz

Unions Canterbury
Thurs Dec 13, 4.30pm (Xmas drinks)
TUC, 199 Armagh Street, Christchurch.
Karena.Brown@epmu.org.nz

Unions Gisborne end of year function
Thur Dec 13, 5pm.
'The Meetings' venue.
Colleen.Ryan@ndu.org.nz

Unions Wanganui BBQ
To celebrate the foundation of Unions Wanganui
Friday 14 December, 4.30pm
Unity Centre, Bell St (all members welcome)
Kaye.Hearfield@ndu.org.nz / dave.feickert@gmail.com

Unions Otago Christmas event
Monday 17th December 2007,  4.30pm – 6.30 pm
Duke of Wellington , Queens Gardens, Dunedin.
glendaa@nzno.org.nz  

Unions Manawatu Christmas Party & Wind-Up
Thurs 20 December, 3pm
PSA House, 47 King Street, Palmerston North
john.shennan@psa.org.nz

Other events and campaigns
 
Unions Wellington First Friday Drinks
The regular monthly get together
After work Friday Dec 7th Brix Bar Abel Tasman Hotel
Cnr.Willis & Dixon Streets

'Now The People Have Awoken'
New Zealand Film makers tell the story of the changes in Venezuelan politics
One chance only - Wednesday December 12 - 8.15pm - film screening (rated E Exempt) and a Q&A session with film maker Julia Capon.  More info about the film and an excerpt here: http://www.scoop.co.nz/stories/CU0711/S00364.htm

The Future of Workers Charter
Saturday 15th December, 1pm to 2.30pm.
Trades Hall, 147 Great North Road, Grey Lynn, Auckland.
To discuss where to with the Workers Charter project.  More info: http://www.scoop.co.nz/stories/PO0712/S00026.htm (halfway down the page, under announcements).

CTU Meetings, training

CTU Climate Change Group
Friday 14th December , 10 am to 1 pm,
CTU, 7th Floor, Education House, Willis Street, Wellington.
peterc@nzctu.org.nz

CTU Legal Issues Meeting
Wednesday 12 December , 2 – 4.30 p.m.
CTU, 7th Floor, Education House, Willis Street, Wellington.
peterc@nzctu.org.nz

Workplace Productivity Challenge Workshop
Start planning now for 2008
There is no charge to attend the Productivity Challenge. Financial assistance is available to help with travel, wage reimbursement (if not on EREL or other leave) and other associated costs. Next courses are:
Thursday 6 March 2008, 9 am - 4.30 pm - Auckland
Wednesday 12 March 2008, 9 am - 4.30 pm - Dunedin
Friday 14 March 2998, 9 am - 4.30 pm - Hamilton
Friday 14 March 2998, 9 am - 4.30 pm - Christchurch
Register your interest:
If you are keen to attend one of these March workshops or a future workshop please tell us your name and location and details of how to contact you Email Sandy - productivity@nzctu.org.nz. Check out the WPEP website for more information: http://union.org.nz/workplaceproductivity.html