The Unionist, Issue 96, December 14 2007

The Unionist today reports on the ongoing debate about the wage gap with Australia and a skills agreement signed last week in Wairoa.

CTU leads debate on wage gap with Australia

The CTU continued to lead the debate over the wage gap with Australia this week, following a new report summarising key economic indicators.

Economic Development Indicators 2007, released by Treasury, the Ministry for Economic Development and Statistics NZ, showed a number of positives including skills development, quality of life and low unemployment.

It noted however that wages were lower in New Zealand than anywhere in Australia, and said this was likely to be a driver for migration to Australia.

Last week, the CTU challenged recommendations to close the wage gap in a report (PDF) from conservative think tank the Centre for Independent Studies, which included deregulation and cutting income taxes. 

Increased collective bargaining and industry wide answers to skills, standards, wages and capital investment were needed, not the grab bag of lower taxes and deregulation policies outlined in the report, the CTU said.

The CTU continued its advocacy for higher wages through collective bargaining this week following the release of the Indicators report.

“New Zealand now has a structural problem of low wages, and the 30% wage gap with Australia will only be closed through more widespread industry wide collective bargaining, supported by ongoing improvements in productivity,” CTU Economist Peter Conway said on Wednesday.

Conway said leaving it to the market alone has not worked and the low investment route chosen by employers in the 1990s, encouraged by the Employment Contracts Act, led to low wages and capital investment falling off, which we are now attempting to catch up on.

“The CTU agrees that lifting productivity is essential to lift incomes on a sustainable basis.  However this must be accompanied by effective measures to ensure the benefits are shared, with a strong minimum code and effective industry bargaining.”

The CTU again quoted 2005 Treasury analysis (PDF) that showed wages were broadly comparable with Australia until the late 1980s, but then fell to 60% by 2002.  There is more coverage from Thursday of the CTU’s stance on Radio New Zealand, Newstalk ZB, Radio Live and TVNZ (opens video link).

Upskilling partnership signed in Wairoa

The signing of an Upskilling Partnership Agreement last Friday between the NZ Meat Workers Union, the Department of Labour, AFFCO Wairoa and Waikaremoana Maori Trust was a significant event in union history, CTU Learning Reps project manager Don Farr said this week.

Jenny Thornton, manager of the Department of Labour’s Upskilling programme, and Eric Mischefski (N Z Meat Workers Union) sign the partnership agreement at Wairoa Freezing Works.  The agreement was also signed by Waikaremoana Maori Trust, the Mayor, and Quality Roading Services.

The Upskilling Partnership Programme, which commenced earlier this year, is an initiative of the Department of Labour on foundation skills training.

The agreement signed last week in Wairoa encourages all parties to work together to increase the skills of workers at the Wairoa Works and to build a culture of learning.  The project was launched by Hon Parekura Horomia. 

Involvement of the union is part of establishing the CTU’s Learning Reps programme on worksites.  

On Friday, the agreement was signed by Meat Workers Union organiser Eric Mischefski.  He spoke at the launch of the frustration of workers with inadequate communication skills, the importance of foundation skills to health and safety and emptiness of life for workers in a repetitive jobs if they didn’t have reading and communication skills to provide substance to occupy the mind.

A goal of the project, which also covers Amalgamated Workers Union members in roading company QRS, is to provide the foundation skills that will allow workers to build more complex work related skills.  

A full shed meeting of AFFCO Wairoa workers endorsed the project, with several members volunteering to undertake the Learning Reps role.

“With around 800 workers involved from the two companies that is a huge chunk of Wairoa – that’s 800 families.  The project cannot help making an enormous difference to that town,” CTU Learning Reps project manager Don Farr said.

Events Calendar

Unions Local

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
 
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).

Billy Bragg
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 

CTU Meetings, training

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