By Craig Renney, CTU Economist and Policy Director
Recently, much of the news on the economy hasn’t been great. Unemployment is rising, with an extra 30,000 people out of work just this year. 45% of kiwis got a pay rise less than inflation – meaning real terms cuts in pay. Rents are rising at their fastest rate on record in Consumer Price Index. Firms like Downer and big manufacturing companies are laying off staff, because the number of homes being built is falling. The number of children living in poverty is starting to rise again – after years of consistent decline.
When faced with news like this it’s natural to say that it’s too much to deal with. The problems are too big, and we just have to accept what is happening. Buts it’s important to recognise in economics that everything we do is a choice. Nothing ‘just happens’. The winners and losers from our current set of policies are deliberate. We can choose a better outcome for Aotearoa.
As an example – at the Budget the government announced $3bn on tax reductions for landlords. Yet we are cutting $676m from welfare payments – putting 13,000 more children into poverty. In a time of rising unemployment, more people will need to retrain and reskill if they are to get a new job. Yet tuition fees went up 6%, the government removed first year free tuition, and halved the support available for keeping apprentices. These are all choices – which make life harder for working people.
In housing, the government has chosen to stop state house building, and has withdrawn funding from emergency housing, Māori housing, and helping first home buyers. Yet it gives $180m in tax breaks to property speculators who flip houses for a living. At the same time, the population is growing at a record rate and there were 6% fewer houses built last year. We could choose to accept recent OECD evidence that New Zealand has one of the highest rates of homelessness in the developed world, or we could build more houses and training more Kiwi builders. Again, it’s a choice.
E tū members in care and support know all too well what these decisions mean – an unacceptable delay in progressing pay equity, which needs to be funded by the government. National, NZ First, and ACT are passing the buck to agencies and providers, but ultimately the choice to stop these workers and many others getting what they deserve is on them.
Here at the CTU, we don’t accept that working people and their whanau have to suffer the consequences of this government’s choices. Nor do we accept that increased unemployment is a price we have to pay to get the economy ‘back on track’ as has been claimed. Other choices are not only available, but they also lead to better outcomes and to a stronger economy for Aotearoa.
To help deliver those choices in the future, we are working with Trade Unions like E tū on a project called Reimagining Aotearoa Together. We want to set out a vision for change that can’t be ignored by those in power. With all of us working together, we can build a country that works all of us – not just some. Have a look and let us know how you think Aotearoa could be improved for the better.
But most of all – when you hear that we have to cut public services. When you hear that unemployment has to rise. When you hear that we can’t afford things like new Cook Strait ferries. Know that these decisions aren’t made out of necessity. We can be a country that creates job work and economic security. We can be a country with great public services for all Kiwis. We can keep reducing child poverty. To do so we just have to make different choices. Choices that benefit working people – not just those who already have much.
I am the Convenor of the E tū Care and Support Services Industry Council, and I work in residential aged care. My work involves helping residents wash and shower, noting any rashes, pain changes, lumps, or abnormalities, and documenting everything. I help them dress, assist with toilet needs, make their beds, and support their mobility. I deliver meals and hot drinks, then collect the dishes. I also manage their laundry, help them use their mobile phones, and regularly check on residents at risk of falling. Additionally, I answer call bells as quickly as possible, write in their notes each shift, and fill out incident forms when necessary.
I have worked in the disability support off and on, for just under 20 years, in a huge range of roles. Currently I am a community support worker in Wellington. I love my job and I’ve always had a passion for helping people who are judged within society.
I’m a home help support worker, providing care for clients in their own homes. It’s crucial for our clients to maintain their independence and not be reliant on a care home. They want to do as much as they can for themselves, rather than having someone control their lives. I absolutely love the work I do and cherish my clients, especially those I see regularly. Just being there for them is so rewarding. Some days, we’re the only people they see. It’s wonderful to see their faces light up, knowing we’re there. The families appreciate us too, because we help their loved ones feel valued and respected – feelings every human deserves from those around them.
