September, 2003

Jobs will be lost and the Government's economic development strategy will be damaged by planned tariff cuts, Council of Trade Unions economist Peter Conway said today.

The Government has confirmed it will begin a gradual reduction in tariff rates when it lifts a freeze in 2005. The highest tariffs of up to 19 percent on clothing, footwear and textiles will be gradually cut to 10 percent by July 2009.

The CTU has worked closely with the National Distribution Union and the Clothing, Laundry and Allied Workers' Union on a campaign to protect jobs. The campaign included sending thousands of postcards to the Government, calling for the tariff freeze to continue.

"Previous tariff cuts have resulted in the loss of thousands of jobs in the textile, clothing and footwear sector," Peter Conway said. "Our concern about today's announcement is the effect on the 18,000 workers in this sector.

"We also question whether anyone will benefit from today's decision."

The CTU acknowledged, however, that the Government had rejected advice to remove tariffs entirely, and had aligned New Zealand closely with Australian intentions on tariffs ? a move that went some way to addressing union concerns, Peter Conway said.

"It is now essential that the Government revitalise the industry development strategy to ensure the survival of the textile, clothing and footwear sector."

Jobs will be lost and the Government's economic development strategy will be damaged by planned tariff cuts, Council of Trade Unions economist Peter Conway said today.

The Government has confirmed it will begin a gradual reduction in tariff rates when it lifts a freeze in 2005. The highest tariffs of up to 19 percent on clothing, footwear and textiles will be gradually cut to 10 percent by July 2009.

The CTU has worked closely with the National Distribution Union and the Clothing, Laundry and Allied Workers' Union on a campaign to protect jobs. The campaign included sending thousands of postcards to the Government, calling for the tariff freeze to continue.

"Previous tariff cuts have resulted in the loss of thousands of jobs in the textile, clothing and footwear sector," Peter Conway said. "Our concern about today's announcement is the effect on the 18,000 workers in this sector.

"We also question whether anyone will benefit from today's decision."

The CTU acknowledged, however, that the Government had rejected advice to remove tariffs entirely, and had aligned New Zealand closely with Australian intentions on tariffs ? a move that went some way to addressing union concerns, Peter Conway said.

"It is now essential that the Government revitalise the industry development strategy to ensure the survival of the textile, clothing and footwear sector."

Todays decision of the Labour Government to resume unilateral tariff reductions was described as shameful and ideologically driven by Maxine Gay, Secretary of the Clothing Workers Union.

"The Council of Trade Unions has written to the Prime Minister seeking more time for public discussion on the foreshore and seabed issue," CTU president Ross Wilson said today.

"A meeting in Wellington of unions affiliated to the CTU has called for adequate time and appropriate processes to ensure that informed discussion, with respect and integrity, can take place between whanau, hapu and iwi and the Government which ensures a principled and just outcome," he said

Meetings are taking place up and down the country in unions and communities, Ross Wilson said.

"Greater understanding of the issues is developing but more time is needed to work through to a fair outcome.

"The CTU has conveyed our concern to the Prime Minister and asked that any legislation foreshadowed by the Government discussion paper not be further considered until the processes of public debate have been worked through.

"There are possible options emerging in the discussions, and terminating the consultation process on October 3 would be premature and inflammatory," Ross Wilson said.

The general secretary of the Association of University Staff, Helen Kelly, has been elected unopposed as vice-president of the Council of Trade Unions, CTU president Ross Wilson announced today.

The general secretary of the Association of University Staff, Helen Kelly, has been elected unopposed as vice-president of the Council of Trade Unions, CTU president Ross Wilson announced today.

"The Council of Trade Unions has written to the Prime Minister seeking more time for public discussion on the foreshore and seabed issue," CTU president Ross Wilson said today.

"A meeting in Wellington of unions affiliated to the CTU has called for adequate time and appropriate processes to ensure that informed discussion, with respect and integrity, can take place between whanau, hapu and iwi and the Government which ensures a principled and just outcome," he said

Meetings are taking place up and down the country in unions and communities, Ross Wilson said.

"Greater understanding of the issues is developing but more time is needed to work through to a fair outcome.

"The CTU has conveyed our concern to the Prime Minister and asked that any legislation foreshadowed by the Government discussion paper not be further considered until the processes of public debate have been worked through.

"There are possible options emerging in the discussions, and terminating the consultation process on October 3 would be premature and inflammatory," Ross Wilson said.

CTU President, Ross Wilson, says a new report released this month provides stark proof of the damage done by the Employment Contracts Act and the failed economic experiment of the 1980s and 1990s.

"Today New Zealand celebrates the 110th Anniversary of women having the vote but the celebration is tarnished by the fact that we continue to pay women less then men," says CTU Vice President, Darien Fenton.

"The collapse of the WTO talks in Cancun today signals a deepening globalisation crisis with serious implications for world peace" the President of the CTU Ross Wilson said today,

CTU economist, Peter Conway, says the WTO talks in Mexico must recognise the concerns unions around the world have about the impact of WTO trade agreements on wealth distribution and employment.

"New Zealand should learn from Denmark, a country that has built a strong economy by having a highly unionised workforce that works in partnership with employers and the government," says CTU Secretary, Carol Beaumont.

CTU economist, Peter Conway, is a member of the New Zealand delegation travelling to Cancun in Mexico for the WTO Ministerial Meeting.

Peter says the CTU supports the government's key aim of removing agricultural subsidies by the United States, the European Union and other OECD countries so that New Zealand and developing countries have better access for their agricultural exports.

However the CTU does not want to see concessions in other areas, particularly industrial tariffs if they would damage the textile, clothing and footwear industries, and in the "new issues" of investment and competition, in order to promote agricultural access.

Unions will also be saying that trade agreements must include recognition of ILO Conventions on child labour, forced labour, discrimination and the right to belong to a union and to bargain collectively.

The CTU will also highlight the major concerns it has about the General Agreement on Trade in Services (GATS).

"An international study on productivity shows that New Zealand needs to invest more in technology and improving the skills of its workers," says CTU economist Peter Conway.

The ILO study shows New Zealand workers worked an average of 1816 hours each last year, just eight hours fewer than their Australian counterparts. Yet Australian workers hourly output was 34% higher at $US 26.95, compared to an average hourly output of $US20.05 for New Zealand workers.

"New Zealand workers are working virtually the same hours but the Australian workers are more productive. There are a number of reasons for this. Two of them are that Australian business invests more in training their workers and they invest more in technology," says Peter Conway.

"New Zealand spent the 1990s on a failed economic experiment of driving down labour costs when we should have been investing in producing a highly skilled workforce."

"We also need more managers who recognise that workers are their number one asset. We have too many who just see workers as a cost that has to be cut."