...the gossip

Flash
News of the finance and information workers union
Return to Flash contents | Next Story | Previous Story | Flash Archives

August 2005

Employment and the Economy

Matt Oliver, National Bank, Auckland

image“We’ve seen some strong economic growth and some good conditions for business growth in the last six years.”

Matt is a ‘die hard’ union member who believes that a strong economy and good working conditions have helped keep him debt free through years of study.

“I worked all through university part time and I have no doubt that it is due to work of previous union members that I enjoyed a very-well paid ‘uni job’ and good penal rates for working on the weekend and after hours. I have no student debt after four years of study thanks to the job that I kept because of its terms and conditions.”

Matt says that stable employment relations help strengthen the economy. He cites the situation in Australia where, up until now, they have had balanced industrial legislation, saying that is “certainly a key part of the explanation for the wages gap across the Tasman”.

“Positive changes to employment legislation have improved worker’s rights and protections when it comes to contract and wage negotiations, and this year has seen definite fruit of those provisions in the Engineering, Printing and Manufacturing Union’s ‘Fair Share - Five for 05’ campaign.”

Under the present government and supporting parties (Labour, the Progressives, the Greens and United Future) the economy has grown strongly for the past five years. This has helped create more than a quarter of a million jobs, giving New Zealand much lower unemployment (3.9 per cent), and 100,000 less working age adults on benefits. The government has stimulated the economy and workers rights through the introduction of paid parental leave, increased protections for workers and improved health and safety laws. The government and supporting parties have also introduced 10,000 new apprentices and raised the minimum wage raised six times in six years. Superannuation payments were lifted in 2000 by over $20 a fortnight and increased since then to ensure that the rate for a married couple is 65% of the average wage. From 2007 the new KiwiSave scheme will be in operation and the Government will give $1000 kickstart to every worker who joins this savings scheme.

National and Act oppose and would repeal much of these changes. Their vision to stimulate the New Zealand economy is through tax cuts. They argue that tax cuts would put more money in working New Zealanders pockets, which will help the economy to grow. Tax cuts would probably paid for through using the government surplus, cuts to government spending, or increased government debt. Both parties, as well as United, believe that there are too many impediments to business and would cut back on bureaucracy and compliance costs, such as health and safety laws.

At this election, Matt will be looking for a party that helps small and medium size businesses to prosper, while also helping employees protect their right to quality pay and conditions.

“Compliance costs are rising for businesses and they can face at times bewildering legislation requirements. The challenge for the new government will be to build tools to assist businesses to face these requirements while continuing to groom the industrial landscape out its confrontational heritage of the 1990s.”

Finsec Campaigns
Join Now 0800 FINSEC

Better Banks

Union Kiwisaver campaign

Make low wages history

logo


Support these international action campaigns:

labourstartbase

Good Faith at Work

Health and Safety