Category: Politics

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

Funding holes in National’s policies deeply worrying for workers

E tū, the biggest private sector union in Aotearoa New Zealand, is deeply concerned about the prospect of a National-led Government’s ability to fund essential services and infrastructure, after figures released today show their policies create a large fiscal shortfall.

The figures have been released by the New Zealand Council of Trade Unions, using all the information the National Party have published about their own policy costings to date, as well as data from Treasury and the Reserve Bank. It reveals a shortfall of $3.3bn to $5.2bn, numbers which do not even include major spending promises that remain uncosted by National.

E tū Assistant National Secretary, Rachel Mackintosh, says the National Party must front up now about how they would pay for their election policies.

“National’s promises are expensive, and the party simply cannot make it work without new revenue or significant cuts,” Rachel says.

“The Council of Trade Unions have had to carry out this work because National are still not being upfront with the public about their financial plan. It should really be National’s own responsibility to explain to the voting public how they are going to balance the books. The closer we get to Election Day, the more worrying it is that the National Party can’t present a credible explanation for how they’ll pay for their promises.”

Rachel notes that other parties have been able to present their numbers – Labour through Budget 2023, and the Greens and ACT with their published alternative budgets.

“With National not even able to make their own announced policies stack up financially, we are deeply worried about what this would mean for continued funding of key services. The money must come from somewhere, and so adequately funding things like health and education is at serious risk.”

E tū Co-President, Muriel Tunoho, has worked in community health for decades. She is particularly concerned about what the budget hole would mean for health funding.

“National underfunding the health system is a tale as old as time,” Muriel says.

“People working in the community health spaces are particularly worried because we’ve been forgotten about before. While we have made some gains under Labour, there is still so much more we need to make the health system work for everyone, especially our most marginalised communities.

“Not funding health properly means real hardship for families in Aotearoa. Both the workers and the service users suffer. I have seen poor health outcomes result in all sorts of huge challenges for whānau, it’s heartbreaking.

“E tū members in health need pay equity, safer staffing, and many more improvements. These things require a proper boost to health funding, which we have been campaigning for. Seeing that National can’t even fund their headline election policies is a clear sign that community health would be neglected again.

“Quite simply, National need to turn their policy programme around so that it helps everyone, not just the wealthy few. Now is not the time for tax cuts for the most well-off. It’s the time for serious investment in the communities of Aotearoa.”

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.”

Fair Pay Agreement for cleaners approved!

Cleaners across Aotearoa New Zealand are getting a huge opportunity for real improvements to their pay and conditions, with the Chief Executive of MBIE approving the initiation of a Fair Pay Agreement for cleaners.

The news couldn’t have come any sooner. E tū and large cleaning companies involved in a multi-employer collective agreement for commercial cleaners are in negotiations today with much at stake for these low paid workers.

Historic underpayment of cleaners has meant cleaning companies compete for contracts, which drives down pay and conditions – the exact problem the Fair Pay Agreements Act 2022 was passed to address.

E tū member and cleaner, Mele Peaua, who is part of the union’s commercial cleaners negotiating team, says years of inadequate results from bargaining are a clear demonstration of the need for a good Fair Pay Agreement to cover cleaners.

“A Fair Pay Agreement will be ground-breaking for low wage cleaners like us. It will give collective bargaining power to many cleaners who currently have no access to it,” Mele says.

“Normal collective bargaining just isn’t working for cleaners. We have a wonderful opportunity right now to win a good Fair Pay Agreement and reduce inequality and poverty in our communities.”

E tū Transformational Campaigns Director Sarah Thompson agrees.

“The contracting model creates a ‘race to the bottom’ where labour costs are the significant factor in competitive tendering,” Sarah says.

“Having our multi-employer collective agreement has meant negotiating some marginal improvements for cleaners over the years, but it doesn’t stop non-union employers from undercutting companies who might otherwise be open to paying reasonable wages.

“It’s a particular problem in the cleaning industry, and also in security, where E tū has also been approved to negotiate a Fair Pay Agreement.”

Sarah says that all workers should see the value of Fair Pay Agreements and vote for political parties who support them.

“There is currently a huge political focus on the cost of living. Just as we are finally starting to fix these systemic issues through Fair Pay Agreements, the Opposition has promised to tear them up. That’s just appalling, and we need to make sure as a country that we don’t let that happen.”

Union and security industry body celebrate green light for Fair Pay Agreement bargaining

E tū and the New Zealand Security Association are excited to learn that the bargaining process for a Fair Pay Agreement (FPA) for security workers can now begin, now workers’ initiation signatures have been approved by the Government.

E tū is the union for security guards and initiated for an FPA for this group of workers in March, with more than 1,000 signing on to start the initiation process for an agreement.

Union members have led the way in advocating for FPA legislation in a multi-year campaign to see workers such as security guards and cleaners protected by minimum standards around pay and working conditions.

E tū delegate and security guard Rosey Ngakopu says it’s been a long journey, but she can’t wait for the next stage to begin.

“Our dream of an FPA will now become a reality,” she says.

“We want to reset the security industry, so let’s get into the conversation to create and build a better security industry for the future.”

Gary Morrison, CEO of the New Zealand Security Association, says the association and the union have common goals regarding advancing the interest of employees in the industry, and it looks forward to being the Employer Association representing security employers.

“We will work collaboratively to ensure the best outcomes for the security industry, including our employees, our customers, and security providers.

“In particular, we see opportunities to set standards for training, upskilling, and the health and safety of our workers,” says Gary.

E tū’s Assistant National Secretary Annie Newman says E tū is thrilled that bargaining can now begin.

“It’s wonderful that we’re now able to use this exciting new mechanism – Fair Pay Agreements – to bargain across the whole of the security occupational group for better terms and conditions for all workers,” she says.

“We look forward to working alongside NZSA to improve the lives of all security guards in Aotearoa New Zealand, as well as ensuring workers have a strong voice at the bargaining table.”

E tū’s hospitality workers will also benefit from an FPA, which has also been approved for bargaining to start.

Budget 2023: E tū welcomes investment in our futures

E tū welcomes the 2023 Budget, which includes significant improvements for Kiwi families, as well as welcome developments for people working in some E tū industries.

Highlights of the Budget include cheaper childcare, ongoing reduced public transport fares for children and young people, removing prescription costs, more money for new public housing, and a significant investment in repairing and improving infrastructure.

The Budget also includes updated forecasts by Treasury, with the welcome news that we are no longer expecting a recession.

E tū is particularly pleased to see initiatives for workers such as the extension of the Apprenticeship Boost Program, funding to settle the historic underpayment of holiday pay in DHBs, and money allocated for pay increases for primary and community care workers.

E tū Assistant National Secretary, Rachel Mackintosh, says that an early analysis of the Budget shows that the Government have got a lot right.

“We will be carefully analysing Budget 2023 over the coming days to best understand how our members and our communities are affected,” Rachel says.

“However, looking at the headline figures, it’s clear that the Government have taken the challenge of balancing the books against economic headwinds and have still managed to invest significant resources in improving lives for everyday people.”

Rachel says that E tū will be keen to see money allocated to wages in the health workforce go towards pay equity for community care workers.

“Our members in aged care and community support are overdue a pay rise that recognises the value of their important work.

“The Equal Pay Settlement in 2017 saw these workers’ pay go up significantly, but we have reached the end of those pay rises. With the cost-of-living pressures mounting and a growing demand on these services, our frontline care and support workers need much better wages.”

Rachel says the commitment to climate change mitigation is also welcomed, and that the Government must continue the Just Transition approach to ensure workers and their communities do not bear the full brunt of changes.

“Solving climate change is the essential challenge of our times, and our members in affected industries understand this – finding well paid and meaningful work for people in a climate-friendly future has to remain a priority.

“Overall, we applaud the Government for being able to continue investment in our communities while carefully managing macroeconomic settings. We are looking forward to seeing the policies that political parties take to the election in October.”

ENDS

For more information and comment:
Rachel Mackintosh, 027 543 7943

Cleaners second group of E tū members to initiate Fair Pay Agreement

Cleaners are the latest group of workers from E tū to initiate for their Fair Pay Agreement.

Since the Fair Pay Agreements Bill was passed in October 2022, more than 1000 cleaners across Aotearoa New Zealand have put their signature forward in support of a Fair Pay Agreement.

E tū, the largest private sector union in the country, will send the initiation document on their behalf to the Ministry of Business, Innovation, and Employment (MBIE) on Tuesday.

A Fair Pay Agreement sets minimum pay and conditions for workers across whole industries or occupations by way of bargaining between unions and employer representatives.

So far E tū members in both security and cleaning have initiated for a Fair Pay Agreement.

An E tū leader and cleaner Iunisi Fainga’anuku says the day brings lots of emotion.

“I’m overjoyed and emotional. It’s like a dream come true. Fair Pay Agreements are very important, not just to me but to my whole family, because it means I’ll be able to work fewer hours and get more time to spend with my kids.

“It will also help cleaners to get health and safety training. We work with lots of different chemicals, and we worry that they might be harmful to our health.”

Assistant National Secretary at E tū Annie Newman says a Fair Pay Agreement for workers in the cleaning industry is a huge achievement, as it will help to fix a number of issues.

“Pay is one of the number one issues for cleaners, as many work two or three jobs to get by. The first thing that a Fair Pay Agreement will address is securing base rates of pay for cleaners, no matter which employer they work for.

“This will really help to prevent employers from undercutting each other to win work contracts, which usually sees workers’ wages lowered to make the company more competitive.

“It will also mean workers’ pay rates won’t be affected if they transfer to a new cleaning company when a cleaning contract changes hands.”

Annie says members in cleaning often want more training and development, so they can see a career pathway in the industry with progressive pay rates and opportunities.

“Cleaning is an essential job and cleaners are essential workers. As we have seen through the pandemic, workers everywhere deserve respect, recognition, and dignity, and Fair Pay Agreements are a way of achieving that.”

Excitement as security guards initiate for Fair Pay Agreement

Security guards have made their voices heard and now have enough signatures to initiate a Fair Pay Agreement (FPA) for workers in their occupation.

Since the Fair Pay Agreements Bill was passed in October 2022, more than 1000 security guards across Aotearoa New Zealand have put their signature forward in support of a Fair Pay Agreement.

E tū, the union for security guards, will send the initiation document on their behalf to the Ministry of Business, Innovation and Employment (MBIE) on Wednesday.

A Fair Pay Agreement sets minimum pay and conditions for workers across whole industries or occupations by way of bargaining between unions and employer representatives.

E tū delegate and security guard Rosey Ngakopu, who has been campaigning for Fair Pay Agreements for the past four years, says she’s excited it’s finally time to initiate an agreement.

“It’s an awesome feeling – all our hard work has paid off. Fair Pay Agreements will mean we’ll be able to address industry issues in a collective conversation and find possible solutions.

“FPAs are about raising the standards of our working conditions, lifting our pay, skills and training, and making sure we have everything we need on site to work safely and with dignity.

“I can’t wait to get around the bargaining table and start negotiating.”

Annie Newman, an Assistant National Secretary of E tū, says the initiation is a momentous occasion for security guards – one of the most positive changes for these workers in decades – by giving them a say in the conditions for all security guards across the country.

“Our members tell us that they want improved health and safety, more participation in decision-making, and of course, decent wages,” she says.

“Being able to negotiate on these issues in good faith through Fair Pay Agreements, which our members have fought hard for, will be life-changing for security guards.”

A Fair Pay Agreement will also stop the frequent ‘race to the bottom’, so employers can’t compete by paying the lowest wages to win a work contract, as all workers would be paid the same base starting rates, Annie says.

Security FPA initiation day event

Minister of Workplace Relations, Hon Michael Wood, E tū officials and members will give short speeches outside Parliament on Wednesday morning to mark the occasion.

When: Wednesday 29 March 2023
Where:
Outside New Zealand Parliament House, 1 Museum Street, Wellington
Time:
9.15am (for a 9.30am start) to 9.45am

There will be opportunities for photos with E tū members and the Minister. An E tū official and member will also be available for interview.

ENDS

For more information and comment:
Annie Newman, 027 204 6340

Workers need income insurance now

The biggest private sector union in Aotearoa New Zealand, E tū, is concerned by the Prime Minister’s announcement today that the New Zealand Income Insurance Scheme (NZIIS) will be delayed indefinitely.

The announcement was part of the new Prime Minister’s policy reprioritisation, stating that the policy will not be considered again this term, nor until the economy improves significantly.

E tū Assistant National Secretary, Annie Newman, says the union is disappointed in this development.

“This is not good news for New Zealand’s workers,” Annie says.

“The New Zealand Income Insurance Scheme should be a policy priority as we face a possible recession and other huge changes in the job market.

“The Prime Minister has told Aotearoa that he’s squarely focused on the cost of living for Kiwis. NZIIS should be a key part of that plan, as job losses are often devastating for family budgets.

“Many other countries have highly successful unemployment insurance schemes as part of their welfare systems. New Zealand is behind the 8-ball here.”

However, the union is pleased that the minimum wage will be increased to keep up with inflation.

“Many of our members are on or near the minimum wage, and $1.50 per hour is a significant increase for them. It will take some of the sting out of the rising costs across the economy.

“Increasing the minimum wage by anything less than inflation would have seen minimum wage workers effectively have their pay cut in real terms. While this is an adequate increase, we do know that workers really need the Living Wage if they are to live a decent life.”

ENDS

For more information and comment:
Annie Newman – 027 204 63
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