Economy
Posts on the economy, work, business, income, and labour
What next at PoAL?
Despite the court making them return to the bargaining table, PoAL Chair Richard Pearson seems to fail to understand some basic principles of employment law.
His comments on morning report suggest he’s either ignorant of some basic legal issues or still has no regard for good faith bargaining.
I’d suggest that either case indicates there’s a need for the council to step in and put some responsible adults in charge of this company.
PoA halts redundancies
It’s back to the bargaining table for Ports of Auckland and the Maritime Union. Redundancies are on hold. The court minute is here. portcourt.
The real questions
Why did Key express confidence in Smith after reading the 2nd letter that is the supposed reason for him going? Why did he really resign, what are they trying to distract us from? How did it happen that the woman who Smith resigned over also is the person who got the largest ACC leak in history? What deal did Smith get to stay in Parliament avoiding a risky by-election?
Good for the goose…?
Treasury has repeatedly proven itself incapable of forecasting its way out of a paper bag but, for some reason, that doesn’t stop it trying to tell everyone else how to do their jobs. Currently, they’re pushing for larger class sizes in the reduced education budget. Someone should ask why the education budget is under pressure but Treasury’s isn’t. Wait, someone did.
Smith to go
Even 1 year ago, there would be no doubt what would happen next. He would have sacked Smith without hesitation. Has Key lost those instincts already?
Updates: won’t comment now but will this afternoon. Needs time to make some backroom deals so that skeletons stay in closets? Smith was been summoned to Wellington. Press conference at 1.45. And He’s gone. They’re trying to downplay the reasons. What a disgrace. Full video of Key offloading Nick Smith
Farrar discovers peak oil, nearly
Barack Obama will be breathing a sigh of relief after David Farrar endorsed his call to end oil subsidies. It seems the 3rd oil price spike in 5 years is getting the attention of even the Right. Something, they’ve got an inkling, is wrong and rising petrol prices are here to stay. Pity that, on the cusp of revelation, Farrar opts for the security blanket of neoclassical economics.
Nats’ ACC scandal getting worse by the day
Nick Smith, while Minister for ACC wrote a letter in support of the claims of, um, close personal contact Bronwyn Pullar last year after Pullar threatened to embarrass him and ACC. He says, this was in his personal capacity, even though it was on parliamentary ministerial letterhead. And what kind of coincidence is it that the largest accidental leak by ACC in history went to Pullar?
Bathwater and babies
Tapu Misa has an excellent article in today’s Herald. She hopes those predicting the demise of Labour’s pre-election promise to extend Working to Families to the children of beneficiaries are wrong. So do I. Labour will be defined by what it does for our children. Let’s not throw out what was a very very good policy.
We used to be better at this
Best stick to the polling, Farrar
David Farrar has had a go at David Clark for supposedly blaming (or crediting, Farrar can’t make up his mind) National for the revenue loss resulting from Labour’s 2008 tax cuts after Clark said that National’s tax cuts have sucked 2.5% of GDP out of the Crown’s revenue, widening the deficit by $5b a year. Either Farrar can’t read or he’s desperately spinning.
Nats running a $5b a year strategic deficit
Labour’s Revenue spokesman, David Clark, has picked up on a statement in IRD’s Briefing to the Incoming Minister that “2.5 percentage points of this decline [in tax take as a percentage of GDP] is attributable to policy changes”. 2.5% of GDP is $5 billion a year. So, a huge chunk of the record deficits that National is running is attributable to their tax cuts for the rich.
Chinese threats over Crafars deal
China’s political counsel (note, not a trade official) has threatened New Zealand over the Crafar Farms deal saying that New Zealand trade to China and investment from China is at risk. It seems an extraordinary action over a supposedly private business arrangement. As was Chinese Officials’ meeting with the OIO while the first Crafar farm decision was being made.
Port developments
Ports of Auckland management may be starting to realise that they have bitten off more than they can chew. Faced with international union action, they have called a halt to the redundancy process.
Nats back down from ACC privatisation why not asset sales?
National has backed down from privatising ACC’s work account. To make it work, they were going to have to pump up ACC levies and make it pay a dividend to the Crown to make prices high enough for the private sector to compete. A sign of how weak the government is that they couldn’t push this through. Problem is, the same logic applies to asset sales.
Key’s reshuffle bad news for working Kiwis
The reshuffle announced yesterday effectively made Steven Joyce the new Minister of Labour.
Call me paranoid but I’m thinking that putting the Government’s bully-boy in charge of the rights of working Kiwis may not bode well for employment relations over the next few years.
Mythbustin’: Waitakere Man
Chris Trotter invented the myth of the so-called ‘Waitakere Man’. It assumes Labour has lost voters because we’re all contractors now or in roles where we could be contractors, and don’t need their union-based labour policies and benefit system but want simpler rules for small business. No factory or retail workers in this model. Problem is, it’s not true.
On those that need to work harder
Recently, an article appeared in the Wall Street Journal describing how CEOs around the world spend their time. The article drew on data from a larger study, the Executive Time Use Project . This project relied on reports of time use by CEO’s personal assistants; making it more accurate. It came across my usual reading and I thought I might share some of the findings with you.
Pearson goes to ground over privacy scandal
It’s a bit rich that PoAL are claiming they’re “investigating” online privacy breaches now when it’s obvious they’ve been colluding with Cameron Slater for months.
It’s also interesting that the limited “no comment” comment PoAL has issued has been in Tony Gibson’s name rather than Richard Pearson’s.
Key’s laundry list of broken promises
He must resign. Surely. Here is Key, speaking to the PSA in 2008, making very specific promises about public service jobs, tax cuts, and asset sales that helped him get elected. Promises he has since broken. There’s no excuse. He wasn’t blind-sided by events. He made these promises never intending to keep them. Key is refusing to comment but if the man has any ethics he’ll resign.
Port thuggery
Looks like Ports of Auckland have been unlawfully passing workers’ private information to Cameron Slater.
It’s just another example of the intimidation and thuggery the port management is becoming well known for.
Ministry of National Significance?
The trailers for John Key’s Thursday speech are calling it for a ” new super-Ministry” under the command of Steven Joyce. Merger isn’t the issue – the policy direction is. If Joyce just stays focussed on roads of national significance, mines and oil wells of national significance, and casinos of national significance it will be another waste of time reshuffle. If it becomes genuinely high quality export focussed, then it may prove worthwhile. Fingers crossed.
Reining in student loans
Student loans will remain interest free, but the Nats are planning to rein them in “in a big way”. I guess that means that typical Nat slash-and-burn thinking will result in damaging restrictions to educational access in due course.
China
There’s been much wailing and gnashing of teeth over Pengxin Shanghai’s attempt to buy the Crafar farms. Justified too. I want to take a step back and look at the strategy that China is executing and the imperatives behind it. Like any successful organisation, China is seeking to perpetuate its power. That requires securing access to resources. And China’s sitting on the low-cost cash to do it.
Pull the other one, John
Key to Mike Hosking: “New Zealand either needs to borrow more or earn more, and I’m in the camp that we need to earn more”
Incompetent management forces Shearer & Brown off fence
After months on the side-line, David Shearer and Len Brown have been forced to choose a side in the Ports of Auckland dispute by the irrational and unreasonable behaviour of the Ports management. Shearer has come out against casualisation and marched with the workers in Saturday. Brown has offered mediation between the parties.
Overseas investment must show real gains
David Shearer’s private member’s Bill on foreign investment is pure common sense: unless foreign ownership actually adds something substantial to the economy that cannot be supplied by local owners then all foreign investment brings is higher land prices, locking out Kiwis from ownership. Overseas buyers must bring something real to the table. A good first policy.
Some people just don’t learn
POAL is on the backfoot industrially, legally, and in terms of public relations.
God only knows what kind of hubris made Gibson and his board think they could get away with attacking their workers like this.
It seems that no matter how many times these corporate ratbags get their arses handed to them by union members they just don’t seem to learn.
Port protest gone international
The labour dispute is turning into a fiasco for Ports of Auckland. Thousands marched today through Auckland in protest, and cargo loaded by non-union labour is being blacklisted internationally. How long will Ports of Auckland stay on their self-destructive course?
Lamington’s Stupidity (and why I hate the rent-a-crowd)
I’m no fan of the people who threw the Lamington at Len Brown. They are the same crew who waltz into every social movement in Auckland, suck the life out of it and move on. But the only winner out of this lamington incident was the Port’s board and the (I’m sure) the self-image of the egotistical morons who threw it. It cost the Maritime Union. It belittled those of us who are infuriated at the Mayor’s response. And it was just plain stupid.
Postcards from the “brighter” future
Hey John – where’s our “Brighter Future”? Hey National voters – was this what you voted for?
The press release Len Brown should be issuing
A contrite Mayor Len Brown today offered his apology to Port workers for causing their redundancies by demanding higher port profits then giving them the cold shoulder. “I turned my back on the working class. That ‘we’re on a journey’ BS on RNZ was the final straw. I am donating to the workers the $2,000 they gave my election campaign, and the $270,000 3-year payrise they helped me get when I became Auckland mayor.”
Meeting a need
Can anyone tell me why the Nats are spending $300m to build and $36m pa to run a 960-bed PPP prison when there are 2000 spare beds in the system and prisoner numbers are projected to fall? Or why Joyce is cutting a dirty ‘convention centre for pokies’ deal when international convention numbers are falling? Or why they’re spending $1b a year on low BCR highways when vehicle numbers are falling?
How history will remember Len Brown: scab, coward, judas
You betrayed the people you pretended to represent Len.
Women kept out of the boardroom
Stuff has a report telling us what we already know: an old boys’ network keeps women out of the boardroom in Australia and New Zealand. This clubbiness is just one of the reasons we’re such an unequal country. A small network of white middle-class males appoint each other to the boards of their companies, then set each other’s pay
Management incompetence costs POAL millions
Ports of Auckland wants to increase profits by slashing pay-packets by 20% – $6m. So far, the process has cost them at least $28m. Add $9m for redundancies. Add the cost of continuing interruption as the contractors are established. Add the cost of blacklisting. Add the cost of customers that have shifted ports. Len Brown should sack the POAL management for incompetence.