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Posts Tagged ‘collective bargaining’

New Zealand’s Wisconsin?

Posted by on September 3rd, 2012

The government is quietly making a move on collective bargaining in the State Sector. The State Sector and Public Finance Reform Bill, tabled in parliament last week, has a provision that has many speculating that this government is intending to implement its own version of the Wisconsin assault on collective bargaining in the public sector.

In a new provision under the bill, “workforce policy matters”, including the government’s “expectations” for pay and conditions, will be issued by Order in Council, which means they will be legally binding. This will allow the government to jump over any collective bargaining and good faith process and dictate pay and conditions.  It will undermine collective bargaining in the State and diminish the employment rights of thousands of workers.

So why?

HIgh levels of union density in the State Sector, as compared to the Private Sector has an impact in setting pay and conditions overall. The government’s keenness to reduce government expenditure in the State makes collective bargaining and union membership an obvious target for implementing employment policies aimed at reducing the influence on the overall labour market.

These changes, along with the government’s amendments to collective bargaining for all workers will enable employers to pay new workers less; and that’s the clear intention.

Every New Zealander needs to be concerned about these changes.  They might look like they only affect unionised workers, but they will affect everyone.

Wages are already too low in New Zealand.  Take away collective bargaining and further weaken unions, then the only thing left to fall back on is a reliance on the market and good old trickle down.

And has that worked?

I don’t think so.

 

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Filed under: public services, workers rights
3 Comments

Planet Reality

Posted by on July 23rd, 2012

When the National Party talks about Planet Labour, they think they are being very funny. Actually, I believe they’re the ones living on another planet, and it’s certainly not Planet Reality.

I just met a couple of great women who know Planet Reality. They are caregivers in an aged care facility, which includes a dementia unit, some with years of service. Most of them are on minimum wage.

They and their fellow workers were on strike three days last week to get a collective agreement. They haven’t had one since the Home was sold by the Baptists to a private owner in 1997.

They want a pay scale that recognises their experience, skill and service, that isn’t dependent on minimum wage movements or the will of the boss. They want a way to ensure that taxpayer funded increases are passed onto the workers when they are intended to be.

They’ve been bargaining with their employer since last October. They’ve been in mediated bargaining since February. They’ve done everything they can under the law to get their employer to agree to a new agreement and they will do more – at least while they still can.

The government’s going to change the law so employers don’t have to keep bargaining. When they’ve had enough, they can say, that’s it, had enough, bargaining over. Bad luck. Back onto your individual contracts where you belong.

Minister Wilkinson tries to soft soap this by saying this change will return the law to how it was under Labour until 2004. But the law was changed because some employers were “surface bargaining” – going through the motions until they could pull the plug by saying bargaining was concluded.

I know this doesn’t mean much to a lot of people. It certainly means nothing to those who don’t understand the realities of low wage workers and how hard it is to get a collective agreement settled when your employer doesn’t want a union on the job, because it’s a whole lot easier to have all the power.

I just hope these women get a deal before Wilkinson manages to get the law changes before parliament.

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Filed under: aged care, low pay, Work and Wages, workers rights
8 Comments

High wage work vital to fairer outcomes and economic development

Posted by on October 18th, 2010

One of the very exciting aspects of conference for me was showcasing  the work that has been done on bold new economic policies.  Policies that are prefaced on the belief that fairer economies are more successful economies and that there are fundamental structural problems in our economy that require a fundamental shift in approach. 

One important policy area that is key to both fairer outcomes and changing our economic performance is our employment relations policy.  A lot of work has been done by the CTU, Labour affiliated unions and Labour MPs to re-cast our policy.  There is a recognition that while the Employment Relations Act was a necessary response to the damage of the Employment Contracts Act, it was not sufficient to really shift outcomes for wage and salary earners.  In particular the ability to collectively bargain has proven to be an elusive right for most New Zealanders.  As a consequence wages have lagged and many have been dependent on  changes flowing from increases to the Minimum Wage.  

Low wages have huge negative impacts – for families, for communities and for our economy.   Low wages mean many struggle to make ends meet (or can’t make ends meet).  Low wages mean that essential investment in lifting productivity by investing in technology and lifting skill levels has not had the necessary economic imperative.  If you have to pay decent wages you become focused on getting the best possible results.  Low wage workers are seen as readily replaceable commodities.  Low wages pushes our families to Australia to get a better deal (on average wages are 30% higher).

So the new employment relations policy is focused on delivering the benefits of collective bargaining to more New Zealanders and importantly the mechanism for doing so is created through extending negotiated outcomes to become industry standards.  This will require industry level negotiations. What this does is to facilitate focus on industry wide issues like training and qualifications and standards. It requires cooperation at the industry level. 

In my mind this is vital to shifting our economic performance.   If firms can compete on driving down wages and conditions inevitably a productivity enhancing investment approach comes under pressure.  Short term cost reduction becomes the driver.  We cannot become a high wage, high skill and highly productive economy with this approach.

CTU President Helen Kelly gave a very clear and passionate elaboration of a new employment relations framework.   As she says “ It is time for a new look. While this Government has proven to be a disaster in all of these areas (high unemployment, low wages, long hours, unfair taxation, reduced social security and public services – my summary) , it has been able to get away with it because the current economic paradigm is completely dominant and unchallenged.   That paradigm tolerates poverty as a natural partner to wealth, that paradigm values wealth over any or all social values and that paradigm makes working people the victims of all and any of its failures”.

A new employment relations framework is necessary. It is necessary because it is vital to shift to the type of economy we need,  it is necessary from a rights perspective (real rights to collective bargaining and to having an independent voice) and it is necessary to deliver a decent standard of living for all New Zealanders.

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Filed under: economy, inequality, productivity, wages, workers rights
79 Comments