December, 2004

Another increase in the minimum wage was a signal to employers to follow the Government's lead on wages, Council of Trade Unions president Ross Wilson said today.The adult minimum wage would go up 50c to $9.50 per hour from March 21. The minimum youth wage would increase 40c to $7.60.

"The Government has increased the minimum wage by 5.6 per cent today, yet private sector employers are slow to recognise the need to increase pay ? despite persistent skill and labour shortages," Ross Wilson said.

The minimum wage was frozen at $7 per hour under the last National government. Labour has increased it a total of 36 per cent since 1999.

Increases in the minimum wage alongside low unemployment showed that employer predictions of a rising minimum wage increasing unemployment were wrong, he said.

"The CTU is pushing for it to be lifted again to around $11 per hour ? based on restoring the minimum wage to just over 50 per cent of the average wage as it was in 1987."

Unions were also calling for the youth rate to increase to $10 per hour, alongside a commitment to phase out youth rates.

Today's increase still left New Zealand trailing Australia, where the minimum rate of AUS$12.30 per hour is 42 per cent higher.

The Government's announcement of more money for aged care recognises the significant funding pressures on the sector, Council of Trade Unions president Ross Wilson said today.The Government has given district health boards an additional $18m to fund residential care for older people.

The CTU welcomed the move which was needed to deliver quality care for people in resthomes, dementia units and long-stay hospitals.

"Poor pay and conditions have resulted in huge recruitment and retention problems, with most aged care providers unable to employ enough trained workers," Ross Wilson said.

Unions were actively involved in the working party looking at longer-term solutions.

"Sustainable solutions must ensure that funding levels are sufficient to improve staffing levels and training and will result in fair pay for caregivers, support workers and nurses in the sector."

Unions also acknowledged the commitment of the former Associate Minister of Health, Ruth Dyson, to improving funding and the provision of services to the aged care sector.

Trade unionists are working to set up a new international union organisation, to tackle the challenges of the global economy. Download the Unionist (pdf 400kb)

The pay settlement offered to the New Zealand Nurses Organisation recognised the true value of nurses in the 21st century and would be welcomed by all New Zealanders, Council of Trade Unions president Ross Wilson said today.

Unions welcome the establishment of the Pay and Employment Equity Unit which is set to tackle the pay gap between men and women, Council of Trade Unions vice-president Helen Kelly said today.

The Partnership Resource Centre will help to develop new forms of engagement between employers and unions, and realise the full potential of the Employment Relations Act, Council of Trade Unions president Ross Wilson said today.

The Government's Food and Beverage Taskforce is an opportunity for skilled and experienced workers to have a voice in the sector's development, Council of Trade Unions secretary Carol Beaumont said today.

The Council of Trade Unions today called on the Government to use its strong fiscal position to make further investment in skills, infrastructure and improved health and education outcomes.

The Golden Jandal Award for Flip-Flopper of the Week is being fought around labour issues with the feather-weight Don Brash in the blue corner, slugging it out with the sumo-sized Chinese Government in the red corner.

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The annual leave entitlement would be back to three weeks for most workers under the National Party's plan to give them the "choice" of cashing in the fourth week of leave, Council of Trade Unions vice-president Helen Kelly said today.

Council of Trade Unions president Ross Wilson has been refused access to
China and has had his visitor's visa cancelled by the Chinese Government.Ross Wilson was to attend an OECD seminar in Beijing next week with
representatives of 25 governments, union leaders from 20 countries and 15
foreign investors to discuss raising labour standards in China.

China cancelled the meeting and invalidated all the participants' visas,
claiming it was "inappropriate and inconvenient" timing.

The incident comes as New Zealand officials begin talks in China today for a
free trade agreement between the two countries.

"The seminar was only going to talk about guidelines for foreign companies
in China, so this action by the Chinese Government raises serious questions
as to whether they are willing to even discuss labour standards," Ross
Wilson said.

"It appears that the position of the Chinese Government is that there should
be no constraints or standards for any company operating in China."

It was understood that the decision to cancel the seminar was made at the
highest political level in China, he said.

The move also prevented a planned meeting between the New Zealand union
leader and his Chinese counterparts.

OECD guidelines for multinational companies which were to be discussed at
the seminars included working conditions, union recognition and health and
safety.

Ross Wilson said the international trade union movement would continue to
work for the protection of workers' rights in China.

"More and more consumer products are sourced from China, so Chinese labour
standards are a major international issue.

"It is estimated that even developing countries like Bangladesh and
Indonesia will each lose up to a million manufacturing jobs to cheaper
labour options in China."

The latest wage and salary survey shows that pay rates are still responding weakly to the labour and skills shortage, Council of Trade Unions economist Peter Conway said today.The National Employers Wage and Salary Survey, published by the Employers and Manufacturers Association, showed wages and salaries went up 3.5 per cent in the year ended July 2004.

"If you take increased consumer prices and the growth in productivity into account alongside labour shortages, it is only a very modest increase," Peter Conway said.

Wages had only risen significantly in a small number of trades with acute skill shortages such as construction, he said.

The survey also showed that the pay of ordinary employees went up faster than managers' pay.

"If this is the case then it's about time ? it is at least a decade since I have seen that happen," Peter Conway said.

Its been a big week for the union movement - the amendments to the Employment Relations Act and improvements to the paid parental leave scheme both came into force on December 1. The week also saw the release of a major report on productivity and the Governments announcement of more free trade agreements.

Unions are calling for increased Government funding to ensure that elderly people are cared for by a highly-skilled and well-paid workforce.Today the health select committee has recommended more money and paid training for caregivers who look after elderly people.

Unions supported the select committee's acknowledgement of chronic under-funding in the aged-care sector.

"Low wages and conditions have resulted in a turnover rate of between 30 and 40 per cent in the sector," said CTU social policy analyst Jack Byrne. "We welcome the select committee's recommendations to fund caregiver training and ensure trained caregivers then receive higher wages."

The Government needed to act on the committee's recommendations urgently as the aged-care sector was in a crisis that impacted on the health and well-being of thousands of vulnerable elderly people, Jack Byrne said.

"Unions and aged care providers who met with senior Ministers this week are keen to see the establishment of a working party so that funding issues in the sector can be addressed in next year's Budget."