Category: General

Minimum wage announcement “a pay cut for the most vulnerable”

E tū is appalled with the Government’s decision to increase the minimum wage by less than inflation for a second year in a row.

Minister of Workplace Relations and Safety, Brooke van Velden, announced today that from April next year the minimum wage will be $23.50, an increase of just 35c, or 1.5%. The Consumer Price Index (CPI) most recently reported annual change was 2.2%.

A calculation done by the New Zealand Council of Trade Unions shows this will make full time minimum wage workers worse off by $1,206 per year, compared to how much they would have earned if minimum wage increases had kept up with inflation.

The announced rate is $4.30 below the Living Wage, which is $27.80 for 2024/25. The difference is $172 per week, or $8,944 per year.

E tū Assistant National Secretary, Annie Newman, condemns the decision.

“The Government has made another callous decision which will make in-work poverty even worse in Aotearoa,” Annie says.

“This is effectively a pay cut for the most vulnerable and lowest paid people in the workforce. Costs continue to rise across the board, with housing, food, transport, energy, and other essentials becoming even less affordable.

“Workers and their families are already up against extra costs imposed by this Government, such as ACC levy increases, the reinstatement of prescription fees, and slashing public transport subsidies.

“The Government seems hell-bent on making life hardest for those who need the most support.”

Annie says every worker deserves the Living Wage.

“The difference the Living Wage makes for workers is life changing. When our members win the Living Wage, they’re in a much better position to make ends meet. Many report being able to reduce their very long hours, allowing them to spend decent time with their families.

“Increasing wages in the best way to reduce in-work poverty. The Government should be lifting the minimum wage above the rate of inflation to bridge the gap between the minimum wage and the Living Wage.

“Instead of increasing the minimum wage above CPI, or even keeping up with it, they’ve chosen to give minimum wage workers a pay cut in real terms. It’s a decision to exacerbate the cost-of-living crisis for those it hits hardest.

“As Aotearoa’s workers finish 2024 and look ahead to the new year, those who earn the least are finding out today the Government has chosen to make life even harder for them in 2025. It’s frankly outrageous.”

Pike River: 14 years on and far too many of us are being injured at work

Statement by Mark Anderson, E tū Engineering, Infrastructure, and Extractives Industry Convenor

E tū acknowledges the anniversary of the 29 workers killed at Pike River. Today in Parliament the Minister of Workplace Relations, ACT MP Brooke van Velden, read out a statement commemorating the miners. While it is right that the House took time to recognise the hurt and pain caused by the explosion and its aftermath, the Government needs to do more honour the legacy of Pike River.  

The Minister’s actions on health and safety show the Minister has failed to understand the lessons of Pike River. Instead of boosting health and safety at work, her party and her Government are looking for ways to water down the protections it has delivered.

The Minister’s motion moved was:

That this House notes that today in 2010, 29 miners lost their lives while at work in the Pike River Mine: express its condolences to family and friends who will forever be profoundly impacted; and thank rescue and support teams for their service on that day and the days that followed.

If we want to honour the workers who died at Pike River, then let’s remember that WorkSafe and the Health and Safety at Work Act 2015 were an outcome of the Royal Commission of Enquiry. The true legacy of Pike River is that 14 years on we have managed to reduce serious injuries and deaths at work. But more is needed. The level of danger to workers is still far too high.

According to Stats NZ, last year a quarter of a million people were injured at work with 43,200 serious injuries or deaths. That is 120 serious injuries every day. There were 54 fatal work-related injuries. This is down from the 81 New Zealanders killed in 2022 but it is a fact that workers are still dying and that 43,200 serious injuries is still too many. One worker a week is dying at work in New Zealand.  

Pike River happened because the owners of the mine put potential profit before worker safety. They failed to be good managers. They blew up their business. They killed 29 miners and devastated the West Coast community.

The explosion in the mine was a brutal reminder that health and safety is not a barrier to business and economic progress. Better health and safety protects workers and it improves business productivity. We will have a better economy when we stop killing and injuring people at work.

The Health and Safety at Work Act is a good piece of legislation. It works because it requires everyone at work play a role in health and safety and it because ensures workers have a voice in how health and safety is practiced. Spending more on Worksafe and doing more to improve the Act and improve the guidelines, training and regulations that bring the Act to life must be a priority for every government. We owe it to the miners who died at Pike River to do more.

E tū members ready to ‘Fight Back Together’

E tū members will join the wider union movement and our community allies at the ‘Fight Back Together – Maranga Ake’ hui happening nationwide tomorrow, Wednesday 23 October 2024.

E tū is the biggest private sector union in Aotearoa New Zealand, covering a huge variety of workers including in aviation, communications, community support services, manufacturing, food, engineering, infrastructure, extractions, property services, and in many other industries.

E tū National Secretary, Rachel Mackintosh, says E tū members will be out in force.

“The hui are one part of the union movement’s mobilisation in the face of attacks from a shockingly anti-worker coalition Government,” Rachel says.

“The Government has already cancelled Fair Pay Agreements, re-introduced 90-day ‘fire at will’ trials for all workplaces, and increased the minimum wage below the inflation rate – effectively giving Aotearoa’s lowest paid workers a pay cut during a cost-of-living crisis.

“They aren’t stopping there. The Government has plans to remove the rights of workers to challenge their status as contractors, robbing them of an important legal protection. We’re deeply concerned about their proposals to meddle with health and safety legislation. They have deprioritised pay equity. We’re calling on the Government to reverse their dangerous agenda in workplace relations.”

Rachel says E tū members are troubled by the Government’s actions and plans beyond workplace relations as well.

“Luxon’s Government is overseeing a deliberate weakening of our public services, particularly in healthcare. They are stoking upsetting divisions in our society with their attacks on te Tiriti and te ao Māori. They have mucked up our social housing programme and cancelled modern transport solutions. It’s a Government of profits for rich mates ahead of people and the environment. Workers are angry, and they have every reason to be.

“We have a vision for something better for working people in Aotearoa. This can be a place where we have decent work, good social and physical infrastructure to support communities, justice under Te Tiriti, an end to inequality and hope for the future.”

Rachel says tomorrow will be a landmark event for E tū and the wider union movement’s activities to demand better for all, not just for a few.

“This isn’t the start, nor the end, of our campaign to protect workers and our communities from the harms of bad political leadership. However the hui will be a significant milestone, and I am proud that E tū members’ voices will join the chorus tomorrow and beyond.”

Historic win for drivers as Uber appeal dismissed

Uber drivers are celebrating today as the Court of Appeal dismisses Uber’s appeal of the historic 2022 Employment Court verdict that found four drivers were misclassified as contractors by the international ridesharing company and were entitled to full employment protections in law like the right to sick leave and holiday pay, and the right to join a union.

In light of the decision, FIRST Union and E tū representatives are demanding that Workplace Relations and Safety Minister, Brooke van Velden, immediately drop her expedited plans to reform New Zealand’s contracting law and prevent workers from being able to challenge their misclassification as contractors in future through the Employment Court.

Of particular importance in today’s ruling, the Court of Appeal has applied what it considers to be a more accurate analysis of section 6 of the Employment Relations Act, and reached the same conclusion as the Employment Court in the original verdict. The Court of Appeal used the term “window dressing” to describe the terms provided to drivers by Uber in relation to their employment conditions.

For Nureddin Abdurahman, one of the four drivers who took the original court case, the decision is about hope.

“This is a win for all working people,” said Mr Abdurahman.

“The day of corporates like Uber exploiting NZ workers is coming to an end!

“I’m grateful to the legal system for identifying an injustice to the working class and examining it properly. I’m extremely happy – this will make a huge difference at a time where Uber drivers are still being mistreated by the company.

“Some drivers have no other options – this decision is all about hope and will help them in moving forward with the appropriate rights of permanent employees.

Mea’ole Keil, another of the original Uber drivers who took the case, said he was proud that drivers took a stand against exploitation.

“I’m ecstatic, over the moon, and very emotional. It’s a relief. It’s been a long journey, a long fight, and we want to thank the unions’ legal teams for keeping the faith in us,” said Mr Keil.

“I think that personally for drivers, it’s an affirmation that we were right – we were not contractors but employees. We hope our win here will help others who are in unfair working relationships with employers to stand up for themselves.

“For too long employers like Uber have exploited gaps in legislation to hide the true employment relationship and take advantage of workers unfairly – we had to take a stand and pray that the legal system would back us – it has.”

FIRST Union General Secretary, Dennis Maga, says the Court of Appeal’s verdict is heartening and motivating for the drivers and unions against a backdrop of anti-worker reforms under the National Government, and it is key for politicians to read and understand the significance of this court case and the dismissed appeal.

“This will change the landscape of employment in Aotearoa for the decades ahead of us,” said Mr Maga. “This decision will ensure more workers are in secure jobs and not prone to precarious and exploitative misclassification by companies like Uber.

“The majority of Uber drivers still do not earn minimum wage. This appeal and ruling now cements the fact that drivers have been misclassified as contractors and denied basic employment rights by Uber.

“We’ve already supported more than 1000 Uber drivers to file and seek wage and holiday pay arrears in the Employment Relations Authority, and FIRST Union has initiated collective bargaining with Uber already – this work can now progress after being effectively on hold for this ruling.”

Mr Maga said FIRST Union would now continue to progress backpay claims, encourage Uber drivers to join the union, and seek a Collective Agreement for Uber drivers in New Zealand.

Rachel Mackintosh, E tū National Secretary, said the decision shows clearly that Uber workers are indeed employees and are entitled to the rights and protections that cover all employees in Aotearoa New Zealand.

“The Uber model of employment is new, but the importance of workers’ rights is not. We have legislation to stop exploitative employers taking advantage of precarious workers, and the courts have not accepted Uber’s argument that they are somehow above the law,” said Ms Mackintosh.

“Today’s decision is a real cause for celebration, not just for the affected Uber workers but for the whole Aotearoa workforce, as it confirms what E tū and FIRST Union have long argued – fundamental workers’ rights are protected by law.

“This decision should be a warning to the Government as they consider tampering with employment laws to give vulnerable workers fewer protections. As new ways of working emerge, it’s crucial that our employment laws are there to protect working people, and not allow them to be exploited.”

Today’s ruling echoes other international courts in determining that Uber drivers are employees, not contractors or self-employed people, for example in the UK (2021) and the Netherlands (2019). These courts found that Uber effectively controls drivers’ hours and wages, and that drivers are an integral part of Uber’s business. As employees, Uber drivers are entitled to minimum wage, holiday pay, and other key workers’ rights.

TIMELINE OF EVENTS – UBER CASE

1. July 2021: Uber drivers file legal action

FIRST Union and E tū file legal action on behalf of four Uber drivers, arguing that drivers have been misclassified as contractors. The drivers argue that Uber exerts significant control over their work, including setting fares and managing driver performance, which supports their claim for employee status.

2. June 2022: Employment Court hears the case

The Employment Court hears arguments from both sides. Uber argues that drivers are independent contractors who choose their working hours and terms. The unions argue that Uber’s operational practices and control over the drivers’ work structure meet the criteria for employment.

3. October 2022: Employment Court verdict

The Employment Court rules that the four Uber drivers should be classified as employees, citing Uber’s control over the work environment and terms of employment. FIRST Union and E tū celebrate the ruling as having significant relevance to the broader misclassification of workers as contractors in Aotearoa.

4. June 2023: Uber files appeal

Uber files an appeal against the Employment Court’s decision, arguing that the classification of drivers as employees would negatively impact the company’s business model and flexibility. FIRST Union and E tū criticize Uber’s appeal, arguing that it seeks to undermine the progress made for workers’ rights and protections.

5. November 2023: National-led Coalition Government takes office

The new National-led coalition government begins its term, with potential implications for labour laws and gig economy regulations. The National Party and ACT coalition agreement contains a pledge to stop workers from being able to challenge their employment status in the Employment Court in future.

6. March 2024: Court of Appeal hears Uber’s appeal

The Court of Appeal hears Uber’s arguments that drivers should remain classified as contractors. Uber argues that drivers have significant control over their work and hours. The counsel for the drivers argues that Uber’s control over various aspects of the drivers’ work environment justifies employee status.

7. May 2024: Brooke van Velden meets with Uber

Brooke van Velden, Workplace Relations Minister meets with Uber on May Day while unions hold marches to protest the Government’s anti-worker policies. Unions raise concerns about political influence on the legal process and allege that the Government’s close relationship with Uber could undermine the legal process.

8. June 2024: Government expedites contractor law change plan

Brooke Van Velden instructs her officials to begin work on law changes that could prevent workers misclassified as contractors from challenging their employment status in the courts. FIRST Union confirms that the union has not been invited to submit on the proposed law changes under the expedited timeline.

9. (today) 26 August 2024: Court of Appeal ruling on Uber’s appeal

The Court of Appeal rules to dismiss Uber’s appeal of the Employment Court’s 2022 verdict.

Crucial insights for Southland’s business and workforce from the Decent Work Survey

Southland’s first ever region-wide scientific survey of decent work provides valuable information about the experience of local workers.

The survey was conducted over three months from April 2023, inviting all workers in Southland to participate and share their perspectives about employment in the Southland region.

Participants came from a wide range of backgrounds, working in different jobs, from the largest firms to small businesses.

The Decent Work Survey was commissioned by a broad group of stakeholders, including the Southland Business Chamber, the private sector union E tū, Murihiku Regeneration, and Great South, the organisation responsible for the ‘Beyond 2025’ Southland long-term plan.

The survey design, delivery, and data analysis were overseen by independent experts at Massey University.

CEO of the Southland Business Chamber, Sheree Carey, says the Decent Work Survey has significant benefits for the members of the broader business community.

“By understanding employee perspectives on job satisfaction, workplace culture, communication, and professional development, our members can gain valuable insights to enhance their organisations,” Sheree says.

“This initiative aligns with our commitment to creating more engaging and satisfying work environments, ultimately contributing to a productive and positive workplace culture in Southland.”

E tū National Secretary, Rachel Mackintosh, says hearing the perspectives of workers is crucial.

“We know that workers have excellent insights about their own jobs that can often be overlooked,” Rachel says.

“By working with a wide group of interested parties on this survey, we have given a voice to workers across the region and ensured that their experiences can be properly taken into account for a variety of purposes, especially planning for an uncertain future.”

Bobbi Brown, the Project Lead for Beyond 2025 Southland, recognises the role of workers in the Southland economy.

“Our workforce is the lifeblood of our economy and while our unemployment rate remains very low, our employers are very focused on retaining their current staff while also attracting new people to fill vacancies. These insights are very helpful.”

Key insights:

  • Workers feel they are doing useful and meaningful work.
  • The majority of workers in Southland say their pay is not enough or just enough to meeting their basic living needs.
  • Most workers would immediately struggle to meet the cost of basic necessities if they were to lose their job.
  • Workplace culture is closely associated with management practices and the most frequent reason workers decide to leave or stay in their jobs.

Rest in peace, Fa’anana Efeso Collins

From E tū National Secretary Rachel Mackintosh:

E tū is deeply saddened by the passing of Fa’anana Efeso Collins. Our thoughts are with his family and his community as they come to terms with this shocking loss.

Efeso was a friend to E tū and the union movement. He was a Solidarity Member of E tū, and many of our members and staff got to know him well during the 2022 local election campaign, with many of his campaign activities hosted at our Auckland office.

He was a champion of the Living Wage during his time on Auckland Council. He took the time to really engage with our members, to hear their concerns, and to represent them as a community leader. Efeso spoke at our union’s most recent conference, sharing how his own experience shaped the politician he became, especially fighting for some of the most marginalised and vulnerable people in our communities.

Efeso’s work was an inspiring example of values-driven activism and leadership. We will honour his memory as we continue to fight for fairness and justice in our workplaces and wider communities. 

From the E tū Komiti Pasifika:

We send heartfelt condolences, prayers and alofa to Fia, Kaperiela, and Asalemo, after the tragic passing of le afioga Fa’anana Efeso Collins MPthis is great loss for their aiga, friends, colleagues, and the many communities in Auckland, all throughout Aotearoa New Zealand, the Pacific, and beyond. 

Fa’anana Efeso was a natural leader. He always fought for Pasifika workers, their families, and other marginalised groups. He was dedicated family man, community leader, and servant of God. He was honest and passionate, and an advocate on issues that many others overlooked, such as injustice for workers, racism, and discrimination. He inspired hope and promoted practical solutions for workers, helping them to rise up and demand fair treatment, justice, and equity in their workplaces. He walked the talk and was a strong supporter of just and secure workplaces where all would prosper, not just the few.

Fa’anana Efeso, your unique presence, charm, handsome smile, wit, intelligence, humour, kindness, compassion, and inspiring courage will be sorely missed. You will be fondly remembered as a genuine and true warrior for the people.

Fa’afetai tele lava mo lou Tautua. Ia Manuia lau malaga Fa’anana Efeso Collins, a great friend, brother and comrade of our union, E tū.

Ua fa’afetai
Ua fa’afetai
Ua malie mata e va’ai

Ua tasi lava oe
Ua tasi lava oe
I lo’u nei fa’amoemoe

New members of the National Executive

Congratulations to our three new members of the E tū National Executive, who won the elections held at our Biennial Membership Meetings. 

 Don Pryde – South Island Vice President

Nia Bartley – Central Region Representative

Vivien Welland – Northern Region Representative

 Don, Nia, and Vivien will now join the other members of the National Executive in overseeing the day-to-day operations of our union.

We acknowledge all candidates who put themselves forward in these elections and all the union members who came to meetings during September and October to vote. We are a proudly democratic union. 

National’s tax plan “deeply misleading” – E tū

E tū, the biggest private sector union in Aotearoa New Zealand, is hugely disappointed with the National Party’s policy to implement a tax regime that benefits the wealthy while leaving many others no better off.

The plan, released today, includes an adjustment of tax brackets, reinstating interest deductibility for landlords, removing the Government’s recent public transport subsidies, ending the foreign buyer ban on homes worth over $2 million, and cancelling other government projects.

“This is a deeply misleading policy, because it doesn’t factor in everything National will take away from working families,” says E tū Director, Sarah Thompson.

“Their policy says that average families will be ‘better off’ because of their FamilyBoost policy, but they have not factored in the extra costs on families resulting from the removal of Labour’s ECE funding extension.

“Their numbers also don’t reflect that families will be paying more for public transport under their plan, nor does it include the congestion charges they are planning to implement as part of their transport policy.

“Families who rely on public transport or the extra ECE funding will not be nearly as well off as National claim. They’ll also be paying extra costs when National bring back prescription fees. It’s all smoke and mirrors.”

Sarah says landlords like Christopher Luxon are the real winners from this policy, with $2.3 billion going to them over four years.

“Christopher Luxon does not need to pocket more money. He is on the record saying he doesn’t even know how much his seven properties are worth – he’s doing extremely well.

“That money should be going to increasing essential services, building core infrastructure, supporting those who need it most, and investing in the future of Aotearoa. Instead, he’s going to give billions to himself and his rich mates.”

Sarah says that with lower- and middle-income New Zealanders doing it tough during the cost-of-living crisis, the money should be targeted based on real need.

“It’s galling to hear Luxon describe this as a cost-of-living policy when so much goes to the richest people.

Sarah says today’s announcement is another example that the National Party are going into the election with an anti-worker agenda.

“This is just the latest indicator that National doesn’t really care about working people. Yesterday, they re-committed to extending 90-day trials, despite the evidence clearly showing they don’t work. They will also scrap Fair Pay Agreements, robbing low paid workers of their best opportunity in decades to make real gains.”

ENDS

ACT Party’s contractor policy would lock in the worst for affected workers

E tū, the biggest private sector union in Aotearoa New Zealand, is shocked by the ACT Party’s new policy to stop workers being able to correct their employment status.

The policy, announced today, would mean that contracted workers would not be able to challenge their status in the Employment Court, even when the real nature of their employment relationship meant they should be entitled to the rights and protections employees get.

E tū Assistant National Secretary, Annie Newman, says this would be a huge setback for the workforce.

“We already know that employers use contracts instead of employment agreements unfairly – that’s why we have taken cases to court, and won,” Annie says.

“In 2017, labour hire workers at LSG Sky Chefs proved they were entitled to the benefits and protections of a normal employment relationship. Last year, Uber drivers proved in court that the company is really their employer, and they also deserve the rights of employees.

“While these court cases have been victories for the workers who have taken them, they have also shown the need for employment relations reform that better reflects the changing world of work.

“Instead, the ACT Party are proposing the opposite – locking workers into these exploitative arrangements without any recourse. It’s a terrible position that will bed in the worst outcomes for many people.”

Annie says this is just the latest policy from the Opposition that demonstrates their hostility to working people.

“ACT have also promised to end Fair Pay Agreements and bring back 90-day trials. They have opposed every increase to the minimum wage, opposed doubling sick leave, and even oppose moves to make wage theft a criminal offence.

“These are disastrous positions that will worsen poverty and inequality. Working people in Aotearoa have a lot at stake this election – we must stop politicians from actively pushing us down.”