May, 2004

The new workplace learning representatives scheme will help to tackle skill shortages by giving workers better opportunities to train and gain more qualifications, Council of Trade Unions president Ross Wilson said today.

NZEI Te Riu Roa, the early childhood teachers union, applauds the
governments major announcement that it is to provide free education
for three and four year old children at non profit, community-run
early childhood education centres.

The Budget assistance to low-paid workers with families highlights the continuing social effects of the low-wage policies of the 1990s, Council of Trade Unions president Ross Wilson said today.

The PSA welcomes the 2004 Budget, describing it as an important step in rebuilding the state following the ravages of the 1990s, PSA national secretary Richard Wagstaff said today.

"The Government has confirmed it is ready to pay nurses what they are worth," said New Zealand Nurses Organisation spokesperson Laila Harr? today.
Although the amount in Budget 2004 for nurses' pay is unspecified, government has accepted that a "significant" amount will be required to settle nurses' and midwives' pay claim and that this money will need to be found over and above DHB budgets.

"This is good news for DHBs and therefore very good news for patients," said Laila Harr?.

Laila Harr? said this was the positive sign needed prior to NZNO's national MECA negotiations with DHBs next month.

"Government knows that significant extra money is needed to enable the DHBs to reach a Fair Pay settlement with their nurses and midwives," she said.

Laila Harr? said although nurses would mainly be looking to the Budget to address the pay gap between nurses and others in the state sector, many nurses and their families would appreciate the family assistance package.

Nurses would also benefit from increased funding to early childhood education and from the widening of eligibility to student allowances, although much more was needed to alleviate the burden of student debt.

It was disappointing that funding for a project aimed at improving quality care in the disability and aged care sector through a training programme and improved pay for those who achieve a new qualification, was not in the Budget.

"This project is urgently needed to address the very low pay and training needs for caregivers working in aged care," she said.

2004 Budget Economic and Fiscal Update

Health ? Wage Bargaining (changed, unquantified risk):

"Upcoming bargaining rounds in the health sector could result in significant increases in wage costs. If this cost is not met within DHBs' funding paths or the three-year Health Funding Package it would decrease the operating balance or increase gross debt (via DHB deficits). This risk has been updated since the December Update to reflect new information.

The Minister of Finance has yet to fully consider the quantum of this risk."

Universities have been a big loser in today's Budget, according to the Association of University Staff (AUS). Universities will receive a funding increase of 3.2% per student in 2005, only 0.9% more than inflation, and nothing additional for research.

"While Dr Cullen has correctly identified the problems of beneficiaries and the working poor, 11 months is too long to wait for the first major injection of funds to deal with the problems," said Robert Reid, President of the low paid and beneficiary union UNITE.

Changes to benefit stand-down rules promise to be a lot fairer for many seasonal workers facing hardship while temporarily out of a job, Council of Trade Unions president Ross Wilson said today.

"This week's Budget promises to be a Budget for the battlers," Council of Trade Unions president Ross Wilson said today.
The CTU has for several years been calling for Government assistance for low-income families ? and the Government has signalled that this year's Budget will contain relief for these families.

"Unemployment is down to record lows but there are many people who are poor even though they have a job," Ross Wilson said.

The Budget would define the fundamental difference between this centre-left Government and the alternative offered by National and ACT, he said.

"The National-ACT alternative is a return to the 1990s with tax cuts to favour the better off. Only 29 cents in every dollar of tax cuts in 1996 and 1998 went to low and middle income families," Ross Wilson said.

"Between 1984 and 1998 the top 10 per cent of households increased their income by 43 per cent, and the bottom half of all households saw their income decrease by 14 per cent."

The CTU looked forward to this Budget making an investment in people, albeit with the expectation of some differences over timing and targeting of the support, Ross Wilson said.

It should also be noted that Government alone can't address the deficits from the 1990s, he said.

"Employers also need to address the problems of low pay and the Employment Relations Act amendments will help low-paid workers get some traction in collective bargaining."

The funding boost to get more school leavers into education, training or work will help to ensure young people have a fair chance at a career and a good start to their working lives, Council of Trade Unions secretary Carol Beaumont said today.

The Government's response to the Pay and Employment Equity Taskforce report
shows that it is prepared to take action immediately to close the gender pay gap within the state sector, Council of Trade Unions vice-president Helen Kelly said today.

The Government's response to the Pay and Employment Equity Taskforce report shows that it is prepared to take action immediately to close the gender pay gap within the state sector, Council of Trade Unions vice-president Helen Kelly said today.

The Council of Trade Unions has today launched a broadsheet under the banner "There's work to be done, together" which challenges business to work with unions on the real issues facing New Zealand.

Experiences of child poverty, low pay and sub-standard housing will be heard at a major public meeting organised by trade unions in South Auckland this weekend.The Facing Poverty workshop has been planned by the Council of Trade Unions to address poverty and low incomes.

Convener Jill Ovens says the workshop is a response to the problems of many low-paid workers and beneficiaries who are too poor to make ends meet.

"Trade unions estimate there is more than $1.2 billion of Government surplus that could be spent on education, health, and getting rid of poverty," she said.

As much as $500 million may be in the Budget for increases in benefit payments, plus extra money for preschool and childcare, and unions supported these priorities, Jill Ovens said.

"The workshop will push for an immediate increase in benefits, universal benefit entitlements, better labour laws, help with housing costs and the proper funding of health and education through a more progressive taxation system."

A UK expert on child poverty, Adrian Sinfield, joins Susan St John from the Child Poverty Action Group, Green MP Sue Bradford and a number of other high-profile speakers at the workshop which will be opened at the Polynesian Centre in Mangere by the local MP, Taito Phillip Field.

The Facing Poverty Workshop runs from 10am to 3pm at the Polynesian Centre, 90 Bader Drive, Mangere, on Saturday, May 8.