THE UNIONIST: Economic news: wages, tariffs, official cash rate

The Unionist reports on a range of economic stories this week, and profiles the stand taken by South African dock workers for the human rights of ordinary working people in Zimbabwe.  We also give the full listing for Workers Memorial Day events around the country on Monday, and other events and campaign dates.

THE ECONOMY: Lowering wages shouldn't be the response to redundancies

The Council of Trade Unions cautioned this week against a race to the bottom in wages, following two major job offshoring announcements last Thursday.

"The solution to offshoring is not to lower wages and conditions such as annual leave here. The solution lies in lifting the value of goods and services. Investing in manufacturing opportunities, carrying on with programmes to lift skills, and leveraging new technologies will create high value jobs in New Zealand at a faster rate than a business model which outsources production," said CTU president Helen Kelly said on Sunday this week.

"Both ANZ National and Fisher & Paykel are profitable companies in New Zealand, and these were good New Zealand jobs that didn't need to be lost.  In the case of ANZ National, whose profit last year was $1.1 billion, the Reserve Bank should step in to prevent this unnecessary move."

Employers should look in the mirror over migration
Meanwhile, following migration figures out this week, the CTU said that employers needed to look in the mirror to find the main reason why people leave New Zealand to live in Australia.

Business New Zealand this week called for tax cuts to increase pay as a way of curbing the number of people leaving for Australia.

“The fact is that the wage gap with Australia grew by 50% in the 1990s in the period of the Employment Contracts Act – a law promoted by employers. Since 1999, the wage gap has grown by just over 1%.  To suggest that a tax cut would solve the problem is incorrect. It might assist at the margin, but fundamentally the problem is that wages in New Zealand are 30% lower than in Australia,” Helen Kelly said on Tuesday.

"It is time for employers to meet with unions on an industry basis to discuss how to lift wages.  This is a much more constructive approach for employers – rather than blame everyone else,” Helen Kelly said. 

Workers unfairly singled out by Reserve Bank
Today, the CTU said that the Reserve Bank governor was wrong to single out wages increases as a future inflationary threat, in comments made at this morning's announcement that the Official Cash Rate (OCR) would stay unchanged at 8.25 per cent.

The OCR is the interest rate set by the Reserve Bank to meet the inflation target specified in the Policy Targets Agreement it has with the government. It influences the price of borrowing money in New Zealand, such as for home mortgages.

“Workers are feeling the pinch with rising costs," Helen Kelly said. “It is unfair to say that possible wage rises are a reason to maintain interest rates at such a high level.  We have had a tight labour market for 7 years, yet the benefits of economic growth have not been shared, and wage growth has been modest to say the least in that period.”

“We are concerned that workers are unfairly targeted to show restraint.  Businesses have just had a 10% cut in their company tax rate, and we think reasonable wage increases for workers will not cause major inflationary pressures. 

Tariff reviews
Also this week, the CTU welcomed the announcement that import tariffs will be held at their 1 July 2009 levels until 30 June 2011.

“One of the problems New Zealand faces is that severe reductions in tariffs on a unilateral basis have not only damaged industry but reduced any negotiation leverage in subsequent trade negotiations.  The CTU campaigned against the removal of tariffs in the post-2005 review. The announcement of a deferral of any consideration of a review to mid-2009 is an effective freeze and is good news,” CTU Economist Peter Conway said.

The decision was also welcomed by the National Distribution Union, which represents workers in the textile, clothing and footwear industries.

Video: Click here for an interview with CTU president Helen Kelly on TVNZ's Breakfast Business this week, and click here to see CTU economist Peter Conway on TV3's Sunrise programme. 
More info: For more economic news, you can read previous editions of the CTU Economic Bulletin here, or subscribe to the RSS feed for the Bulletin here.

South African dockers commended 

“South African dock workers should be congratulated for preventing arms getting to the Mugabe regime and their stand shows the crucial role unions play internationally in protecting human rights,” CTU president Helen Kelly said this week.  This followed a refusal last week by South African dock workers to unload a shipment of arms from China destined for Zimbabwe.  The union’s road freight members have also refused to truck the goods. 

“This is the crucial role unions play in standing up for democracy in the all parts of the world,” Helen Kelly said.  “The workers thought it unconscionable to handle goods that were destined for the Mugabe regime, to be used against ordinary working people and the democracy movement.  But for this stand, these arms would be in Zimbabwe now.”

“History shows that the rights to free speech and to organise in unions, although guaranteed by international law, are among the first to go when democracy is subverted or overthrown. Blocking the arms at the port was a significant act of solidarity with Zimbabwe’s working people and an act that would have the support of many people around the world.”

The workers’ sister union in this country, the Maritime Union of NZ, have today sent a message of solidarity to the dockers’ union in South Africa, passing on the full support of New Zealand maritime workers for their stand. 

Weekly Events Calendar

Unions Local - remaining meetings in April

Unions Northland
Tue 29 April, 4pm
TUC, 7 First Ave, Whangarei
garry.parsloe@munz.org.nz

Unions Local meetings in May will be updated in next week's Unionist.

Workers Memorial Day
Events take place around New Zealand and around the world to mark Workers Memorial Day from April 28th through to the 3rd of May.  Workers Memorial Day is on April 28th each year and is the day when we “mourn for the dead, but fight for the living”, drawing attention to the plight of the hundreds of New Zealand workers who still die every year as a result of their work.   

• Auckland Monday 28th April
  12pm The Working Women’s Resource Centre invites you to come to the Workers Memorial Garden at Corban Reserve, Henderson to commemorate this day. 
• Hamilton Monday 28th April
  2pm Unions Waikato will host a commemoration for fallen workers at the American Garden, down at the Hamilton Gardens (off Cobham Drive) A special tribute will be made to the memory of a RMTU member recently killed.
• Tauranga/Mt Maunganui Monday 3rd May
  11am at RMTU and MUNZ will host a service commemorating fallen workers at The Seafarers Centre, Hull Rd, Mt Maunganui 
• Palmerston North Monday 28 April
  12:15pm Unions Manawatu have organised an event on the  Corner of The Square and Coleman Mall. All Union Members and supporters are invited.
• Wellington Monday 28th April
  8am Rally on the waterfront near Te Papa and Circa Theatre                                                                                   
  Speakers: Ross Wilson ACC Chair, Carol Beaumont NZCTU Secretary
• Hutt Valley Monday 28th April
  2pm RMTU will host a service commemorating fallen workers at  Hutt Valley Workshops Elizabeth St, Moera Speakers: PM Helen Clark and CTU President, Helen Kelly
• Christchurch Monday 28th April
  11.30am Science Alive Park, Behind Hoyts 9 Theatre, Moorhouse Ave
  Speakers:Darien Fenton - MP,Ged O’Connell - EPMU, Jani Yohanson - City Councillor 
• Dunedin Monday 28th April
  11.30am CTU Unions Otago is hosting a service at the Market Reserve 
  Glenda Alexander MC. Guest speakers to be confirmed 

May Day  

Unions Otago May Day Quiz Evening
Thursday 1st May, starts 7.00 pm
Downstairs at the Duke of Wellington Bar, 1 Queens Gardens – The Exchange
jennym@nzno.org.nz

May Day - Auckland
* March on May 1st for InternationalWorkers Day
5:00pm Rally @ Britomart - open microphone, (Corner of Customs and Queen Streets), 5:30pm March up to Queen Street to Aotea Square to hear keynote speakers
* May Day Dinner will take place on Saturday 3 May, starting at 6.00pm at the Onehunga RSA, dinner will be served at 7.30pm, with short speeches and entertainment.  There will be a cash bar, the bar prices are extremely reasonable and affordable (at club prices). 
linda.holt@psa.org.nz

Manawatu MayDay Concert
The 14th annual Manawatu MayDay Concert, celebrating International Workers Day, will be held at 7.30pm Saturday 3 May at the Regent Theatre in Palmerston North. Its a great night of fun and solidarity in the form of song, music, dance and performance art from union, community groups and individuals from throughout NZ. Entry fee is a mere gold coin donation thanks to major support by the NZCTU. For more info contact dion.martin@ndu.org.nz

Unions Wellington May Day Dinner
From 6:30 p.m, Thursday May 1st
Grand Century Restaurant
Tickets from your Union - $30 [includes dinner, plus Live Latin Band & Cash Bar]

Other Events and Campaigns

Workers Education Association
"The Politics of Debt" Forums
Monday April 28th 12:10 - 1:00 p.m.
Paul Bruce, Green Party Regional Cllr.
"Self Sufficiency - an antidote to national debt"
W E A Rooms, 3rd Floor, Anvil House
138 Wakefield Street Wellington
pbolster@anet.co.nz

CTU Meetings, Training

CTU Climate Change Working Group
Tues 13 May, 2-4pm
CTU Meeting Room, 7th Floor, Education House, 178 Willis Street, Wellington.
Agenda items will include a report from Marilyn Head from NZNO who is attending on behalf of the CTU the ILO Green Jobs Research Conference: Green Jobs for Asia and the Pacific at Niigata, Japan from 21-23 April 2008, an update on the Emissions Trading Bill and a progress report on the CTU Climate Change and Energy Efficiency Project with Business NZ and EECA.
peterc@nzctu.org.nz

Maori Models of Organising - Nga Momo Whakaritenga
6 courses commencing in July across the country. Details will be advised closer to the time, but early enquiries to helent@nzctu.org.nz or 09-303-9018.

Workplace Productivity Challenge Workshop
There is no charge to attend the Productivity Challenge which is an EREL-approved course. Financial assistance is available for travel, wage reimbursement (if not on EREL or other leave) and other associated costs. There are places available in the following 2 workshops - Register now for one of these workshops:
- Thursday 22 May 2008, 9 am - 4.30 pm - Manukau, South Auckland
- We are now seeking expressions of interest for workshops to be held
 Whangarei on 9 June and
 North Shore later in June.

Dates for 2008 workshops and Registration forms for these workshops are on the CTU website. If you wish to register interest in a future workshop please tell us your name and location and details of how to contact you. We will cater to demand and arrange something to suit you if you cannot find a location that suits you.
Email Sandy - productivity@nzctu.org.nz.
Check out the WPEP website for more information: http://union.org.nz/workplaceproductivity.html