Archive for the ‘New Zealand economy’ Category

by Phil Duncan

Last Friday (December 1) all the staff at Rotorua Aquatics, which is owned by the local council, were presented with redundancy notices.

The Council wants to bring in an outside management company, and is preparing the ground for this with the redundancy notices.  The Rotorua Lakes Council is so high-handed that it didn’t even bother with the usual employer pretence of “consultation”.

The mayor involved in this assault on workers’ rights is Steve Chadwick, a former four-term Labour MP

Not surprisingly, the mayor involved in this attack on workers’ rights is a former Labour MP, Steve Chadwick.

The Council’s over-riding motive is clear – (more…)

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NZ Capitalism Ltd’s smiley new manager

by Phil Duncan

When Helen Clark led Labour into government in 1999, little was on offer for workers.  True, to the left of Labour was the Alliance Party which wanted the introduction of paid parental leave and forced this on Labour as part of the price of coalition, Helen Clark having said initially that it would be introduced “over my dead body”.  However, overall, Labour had been engaged in ensuring workers did not have any high expectations of the incoming government – thus there was no way of workers being disappointed and possibly looking left.

All Clark and her party had to do was sit out enough terms of National in the 1990s – three, as it happened – and rely on people getting bored with the traditional Tories and turning to the new, shinier Tories of the Labour Party.  Moreover, the National-led government came apart in the middle of its third term, with Shipley overthrowing Bolger and with New Zealand First going into parliamentary meltdown – NZF leader Winston Peters entered a major ruck with Shipley and many of his MPs decamped to keep National afloat.  Clark could comfortably walk into power over the rubble.

Altered political landscape

In the few weeks run-up to the latest election Clark fan/acolyte Jacinda Ardern faced a somewhat altered political landscape.  In (more…)

by Daphna Whitmore

One of the first announcements of the new Labour-led government was that the minimum wage will rise from $15.75 to $16.50 an hour in April 2018. It will then increase each year, reaching $20 an hour by 2021. While this news got some over-excited responses (from the left and the right) most people understand this is not a seismic shift.

The minimum wage has risen every year for over a decade, mostly pushed by union and community campaigns for a living wage. Despite talk of the new coalition being a ‘change government’, the Labour-led team will have boosted the lowest-paid workers a mere 25 cents an hour more than the National government likely would have. The living wage remains, as ever, postponed.

(more…)

Theo Spierings: salary of $160,000 per week; $32,000 per ‘working’ day

by Don Franks

Not everyone admires the bloke but I believe Fonterra chief executive Theo Spierings is due some appreciation.

If we have eyes to see it, Theo’s done us a favour.

This kiwi dairy worker has jumped into the headlines, not for what he’s done or not done at the office but on account of the size of his pay packet. A total of $8.32 million in 2017, a 78.5 per cent increase  from last year.

Theo Spierings’ earnings are made up of a $2.46m base salary, superannuation benefits of $170,036, a short-term incentive payment of $1.832m and a long-term incentive payment of $3.855m, the co-operative’s latest annual report shows.

Twenty-three other Fonterra executives received up to $1m for their efforts, five of those have recently left the firm, possibly feeling a bit deprived at their loss of relativity.

So what favour has Theo Spierings done us New Zealanders who can’t afford as much cream and butter as we’d like to put on the table?

The Fonterra boss stands as a reminder of several important truths. A reminder that  (more…)

Ardern and English: two faces of what is really one party

by Phil Duncan

Two events yesterday provided a micrcosm of the problem with the NatLabs, and yet more evidence of why workers and progressive people generally shouldn’t support either wing of this party.

One of the most obnoxious events in politics, and in elections in particular, is when capitalist politicians – people dedicated to managing the system that exploits workers- show up at workplaces.  They put on hi-viz jackets or hard hats or hair nets or whatever and walk around making absurd chit-chat with workers and posing for photo opportunities.  The more obsequious workers agree to be part of the photo opp and the most obsequious even take selfies and stick them on their facebook pages.

But, thanks to the courage of Robin Lane and several other workers, Bill English found one of these workplace walkabouts highly embarrasing.  Shortly after inspecting a tray of lemons at Kaiaponi Farms (near Gisborne), English looked like he was sucking on a (more…)

by Don Franks

I don’t care what anyone thinks, I’ve had enough of all the talk about child poverty.  Some of the talk is well-intentioned, but much of it’s actually bullshit

Phrases roll off the tongue but what does poverty mean in New Zealand today?

The Ministry of Social Development works from the level of income set at  60% of median household disposable income after housing costs. This is deemed a reasonable level to protect people from the worst effects of poverty.

Source: Stats NZ 2016

In these terms it’s calculated that the poverty line after deducting housing costs for a household with two adults and two children lies at $600 per week or $31,200 annually in 2016 dollars. For a sole parent with one child it is $385 per week or $20,200 annually in 2016 dollars. Inadequate amounts of money for a decent life and, by such reckoning, there are around 682,50 people in poverty in this country, or one in seven households.

New Zealand is a far more unequal country than it was a generation back. Over the past three decades, under both National- and Labour-led governments, New Zealand has gone from being one of the most equal to one of the most unequal nations in the wealthy OECD countries.  In those 30 years, incomes for the average of the top 10% income earners roughly doubled while lower and middle incomes barely increased. Let’s compare two reports, almost a decade apart.

The 2007 Statistics Department study Wealth and disparities in New Zealand revealed that the top 10% of wealthy New Zealand individuals owned over half of New Zealand’s total net worth, and nearly one fifth of total net worth was owned by the top one percent of wealthy individuals. At the halfway mark, the bottom half of the population collectively owned a mere 5 percent of total net worth.

The most recent available information is a 2016 Statistics Department study Household Net Worth Statistics: Year ended June 2015 (published 2016).  It reveals that the (more…)

by Phil Duncan

Writing about the NZ First leader Winston Peters and the non-scandal around him receiving the pension for a single person when he is in a relationship, Duncan Greive of The Spinoff declares, “The worst part is that the presumed justification – that he was only taking what he was entitled to – mirrors that which has accompanied his whole cohort as it has glided through life with a level of governmental support to which it has studiously taken care to deny its children.”  Greive wants superannuation to be means-tested and suggests that Peters should have refused to accept the pension as he already receives close to $200,000 as a politician.

Firstly, I don’t think it is true that an unjustified sense of entitlement has guided “his whole cohort”; in fact, although I disagree with Peters’ fundamental politics, I don’t even think it has guided Peters himself either. He and “his whole cohort” obtain superannuation because it is a universal entitlement.  It’s not his superannuation that should be questioned – and, to be fair, Peters has done more for older people in this country than any other politician in recent decades – it’s the salaries of parliamentarians per se and the messed up priorities of the existing overall economic-political-social system.

Duncan Greive’s intentions may be (more…)