February, 2005

"There is strong objective evidence to support a minimum five per cent wage lift for all workers," Council of Trade Unions president Ross Wilson said today.He was responding to statements by Business New Zealand and the Auckland Chambers of Commerce opposing the five per cent wage rise campaign launched yesterday by the Engineering, Printing and Manufacturing Union.

Ross Wilson said the evidence was there for all to see:

? The economy had grown by around 20 per cent in the last five years but wages have gone up by only 10.9 per cent.

? Profits were up. Profit per employee went up by 40 per cent in 2002. Employers were predicting a 12 per cent lift in profits this year. Company taxes paid to the Government were up by more than 19 per cent in the last year which showed that employers were making higher profits, because the tax rate had remained the same.

? Executive pay rates (except for one survey in late 2004) have regularly gone up by twice as much as workers' pay.

? Pay rates were 25 per cent higher in Australia. We need to keep skilled workers in New Zealand

? Unit labour costs fell by nearly one per cent a year for the last five years.

? House prices went up by 16 per cent last year ? how can wage earners afford to own a home?

? The minimum wage set by the Government is due to be increased in March by another 5.6 per cent.

? Productivity has gone up by around 1.2 per cent in the last year. This means that despite the huge increase in hours worked, output has gone up by more.

The CTU begins productivity talks with Government and Business NZ representatives today in Wellington.

"We recognise the need to engage around skill development, productivity improvement and industry development," Ross Wilson said.

But workers wanted a gesture of good faith from employers.

"If workers are to work to achieve further increases in productivity, then they need to see that the benefits will be shared.

"The CTU is calling on all New Zealander workers to get organised in union collective bargaining and get the fair wage increase they are entitled to," Ross Wilson said.

Union militancy would grow as unions followed the EPMU's campaign for a five per cent pay rise for its members in 2005, Ross Wilson said today.Speaking in Auckland at the launch of the Engineering, Printing and Manufacturing Union's pay campaign, "A Fair Share ? five in '05", Ross Wilson said workers must join unions and get organised in collective bargaining if they wanted a decent pay rise.

At a meeting of the CTU's governing body, the National Affiliates Council, this week, unions agreed to back a public campaign for wage improvements.

"Reports in the media say business has never had it so good ? companies are reaping the rewards of an economy growing more than 4 per cent a year while labour costs rise at 2.2 per cent," Ross Wilson said.

"Employers are proving our case for us by not offering reasonable wage increases," he said. "It shows the need for collective bargaining, and for workers to join up to unions, get organised and demand decent pay rises."

Workers have been patient, but that patience is running out. Even National Party leader Don Brash has pointed out that pay rates in Australia are on average 25 per cent higher than in New Zealand.

"By being tight and greedy, many employers are forcing greater militancy in their workforces ? and unions are ready to harness that anger and push for a fair share for members," Ross Wilson said.

A strong show of support for the EPMUs influential Metals agreement campaign demonstrates the power of industry sector-wide action, says Council of Trade Unions president Ross Wilson. Download The Unionist (pdf, 400kb)

Nurses, caregivers and support staff around the country have begun campaigning for more Government funding for aged care. Also in this issue, the CTU seeks help to restore democracy in Nepal. Download The Unionist (pdf, 400kb)

With the unemployment rate the lowest it's been for almost 20 years, it is now time to focus on improving the quality of the workforce by upskilling and investment in training, Council of Trade Unions president Ross Wilson said today.

Unions are expecting more funding in this year's Budget for better care for older people and to improve the training and pay for the workers who look after them, Council of Trade Unions president Ross Wilson said today.

Workers from all parts of New Zealand's entertainment industry are joining forces to form an industry-wide coalition to represent their interests and advance their concerns, Council of Trade Unions secretary Carol Beaumont said today.

New Zealanders have a special responsibility to help the people of Nepal to restore democracy, Council of Trade Unions president Ross Wilson said today.Ross Wilson and CTU secretary Carol Beaumont have just returned from a union conference in Nepal, where the King staged a coup and assumed absolute power last week.

The King's decree turned the Asia-Pacific conference of union leaders into an unlawful assembly of illegal organisations, despite union rights being guaranteed by international law.

"It is estimated that 1500 have been arrested, including leaders of political parties," Ross Wilson said. "Union leaders expected to be arrested as soon as unionists from other countries attending the conference left Nepal."

The Nepalese he spoke to believed that New Zealand could play an influential role in persuading the King to restore constitutional democracy.

"Because of New Zealand's close connection with Nepal through mountaineering, trade and aid, the Nepalese look to us to help them at this time of national constitutional crisis."

The United Nations and the International Labour Organisation, as well as many governments, have strongly condemned the action of King Gyrendra in not only assuming absolute power but also outlawing unions and freedom of assembly, suspending free speech and terminating all access to telephones or internet.

"The CTU will be asking the Government and prominent New Zealanders associated with Nepal to take what action they can to help restore democracy and peace," Ross Wilson said.

Industries are not doing enough to boost pay rates to hold on to skilled workers, Council of Trade Unions president Ross Wilson said today.The Labour Cost Index showed that private sector ordinary time wages increased by 2.4 per cent in the last year. The Quarterly Employment Survey recorded an increase in average hourly earnings in the private sector at 2.1 per cent.

"Wages are still on average 25 per cent lower than Australia," Ross Wilson said.

"Wages are lagging behind consumer prices which are up 2.7 per cent, house prices rose nearly 14 per cent last year ? and the Government will shortly put the minimum wage up by 5.6 per cent."

Current levels of profitability and productivity justified better pay and unions would be preparing the case for reasonable pay rises for members.

"There needs to be widespread collective bargaining to ensure workers get decent wage increases," Ross Wilson said.

"What the CTU wants to see is industry groups getting together with unions to address skill shortages, productivity, industry development and infrastructure requirements ? as well as how to provide decent pay to attract workers."

Bring it on: Paid parental leave, more quality, affordable chilcare, flexible working hours - unions were glad to hear the Prime Minister tell Parliament this week that the Government was looking at improvements in all these areas. But not everything in the PMs speech was welcomed by trade unionists.

Criticism over the Government's bid to support more women into paid work is overlooking the fact that it goes towards offering genuine choice which many women don't have, Council of Trade Unions vice-president Helen Kelly said today.