Bill English has given up any pretense of closing the gap with Australia by 2025. Now, he is claiming the wage gap is a good thing and admitting higher productivity isn’t the cause of the wage gap. Meanwhile, Fran O’Sullivan slams Key and English’s ‘fingers crossed’ approach to handling financial crises.
Today National has a terrible April Fools for workers around Aotearoa: 90 day fire-at-will, reduced union access, sick notes after 1 day and minimum wage up a pittance. Workers are doing it tough already, and now National’s turning the screw.
According to Scoop, the PM is telling porkies about the average income of New Zealanders. On behalf of the various authors here at The Standard I’d just like to say, well, gosh! — imagine our surprise.
I/S at No Right Turn has done more excellent work. He’s revealed the official advice Kate Wilkinson was given on the minimum wage. The advice says there is a trade-off between jobs and the minimum wage, but even a rise to $15 an hour would cause an increase wages for low-income earners well above the cost in jobs.
I thought that with a devastating earthquake, a record oil/food price spike, an unemployment tsunami, and a double-dip recession that the Nats’ apologists might have realised it was time for honest discussion of the issues and solutions. Instead, they’re still trying to bury our heads in the sand.
Overnight carers have won the right to be paid at least the minimum wage for time when they are not working and free to sleep, as well as when they need to provide care to their charges in the middle of the night. In reaction, National appears set to legislate away the basic right that when you’re at work you get minimum wage.
Idiot/Savant at No Right Turn compares the bailout of SCF investors with the Nats’ threat to change the law to deny some workers the minimum wage.
8,000 more unemployed in Q4 2010, and 1,000 more on the dole in January; New Zealand headed to a douple-dip recession after a year of anaemic growth; an average wage rise in 2010 of 1.9% with inflation of 4%. And a government focussed on manipulating statistics instead of coming up with an economic plan.
In his speech yesterday, John Key made the extraordinary claim that the real average wage has risen 10% under his rule. That figure is wrong and the measure is the wrong one to use. But there’s a more fundamental check: look around you, is the average family 10% better off than 2 years ago? Who are you going to believe? Key or your own eyes?
The Nats have upped the minimum wage by 25 cents. An increase of 1.9% that doesn’t even keep up with inflation of 4% and is thus a minimum wage cut. On cue a tame economist opines that wage growth can only happen if we achieve productivity growth first. The only problem with this excuse is that over the last several decades productivity has grown significantly, and wages haven’t followed…
So John Key thinks that a 1.9% increase in pay will cover 4% inflation, and that’s all minimum wage workers are going to get. That 25c/hour won’t add up to a litre of milk at the end of the day, let along a block of cheese at the end of the week. A person on minimum wage will now get $437.24/week after tax, whilst JK gave himself over $1000 extra per week in tax cut.
Owning your own home was the foundation of the “Kiwi dream”. Now it seems that we’ve let that dream slip further out of reach than almost anywhere in the world. Houses in Auckland are less affordable than in New York. Demand in the rental market is far outstripping supply. What should the government be doing?
December 2007, John Key, speaking to Carolyne Brooks-Quan said: “We would love to see wages drop“. Key tried several conflicting excuses, including that he was talking about Australian wages (which became a mini-meme). But actions speak louder than words. Yesterday, we had more confirmation that wages have dropped under Key, except for union members.
John Key says that he can’t increase the minimum wage by a decent amount. The excuse this time round is that a decent increase will destroy jobs. Well, let’s check that out a little bit. Is it really true that lifting the minimum wages destroys jobs? If it is, do the benefits outweigh the gains? And what about the cost of letting wages fall?
Higher commodity and food prices, we are told are a Good Thing. Our exporters (ie. Fonterra and foreign oil companies) get more money. But we consumers have to pay more to by the same products, so are we better off? And what about the poor saps overseas who are paying more for less, or the really poor saps who are priced out of the market?
When the government, eventually, gets back from its month-long holiday, it needs to review the minimum wage. To keep up with inflation, the increase needs to be at least 50 cents an hour to $13.25. If we want to catch Australia, we should copy them and lift it to $15.
This collection of articles from recent days illustrate the class war going on within this country. In a time of economic, environmental, and social crisis, either the established elite can be reined in or it will use its power to cement its position and take a greater share of the wealth. Because we’re letting them, the elite are winning the class war.
Labour picked up on the statistics I revealed yesterday that show the median income of Maori has fallen 11.5% under National and the Pacific Island median income is down an astounding 19%. Kris Fa’afoi and Annette King put out press releases. Then King took the battle to Bill English in the House, who it seems is also a reader.
Here’s a little something that Kris Fa’afoi and his team might like to being to the attention of Mana voters as they prepare to go to the polls. On National’s watch, the median Maori income has fallen 11.5%. For Pacific Islanders the fall’s 19%. Pakeha are down 2.6%. No tax cut for the rich can cover the gaping holes in those family budgets.
Wages rose for the rich and fell for the poor this year, according to a Employers and Manufacturer’s Association survey. Managing Directors got a 3.7% rise from $190k to $197k, whilst the unskilled production workers beneath them saw their wages drop 6.5% or $2000 to $29.5k.
The recession, combined with this government, hurts the poor the hardest.
The gender pay gap is increasing by about 1 percentage point each year under Pansy Wong’s watch – it’s now 13%. And a new report out shows women’s level of participation in key leadership areas is static or falling. Female unemployment had passed 7 percent for the first time in 12 years. National’s policies equate to an attack on women.
I’ve never really understood the logic of paying CEOs multi-million dollar salaries. Can Telecom’s $7m man, Paul Reynolds, for example, really be worth 100 skilled technicians? Is there no-one who is basically as good who would work for a million or two less? Now, research shows high pay gaps for CEOs actually makes them worse bosses.
It takes a lot to screw up a great country like New Zealand. It can’t be done overnight. But if you’re really negligent, anti-worker, and focused on hand outs to the rich, you can start to make things worse pretty quickly. Let’s look at the key measures of National’s performance, according to their own criteria:
Wellington’s Embassy theatre hosted the New Zealand premiere of the Ring movies a few years ago. There’s another good movie showing there now. […]
At the last election we chose tax cuts and unemployment instead of stimulus and stability – which was the more ambitious, high wage way to go?
National are not fulfilling their government’s core reason for existence: closing the wage gap with Australia. No, we’re fast going backwards on that score, and it’s predictable: high unemployment causes low wages.
I’ve just been reading The Age of Absurdity, which has many good ideas on modern happiness.
One of the ideas that won’t cause happiness – but will decrease motivation and quality of work – is performance related pay.
(Consumerism and a Sense of Entitlement also causes unhappiness, but big ups to Personal Responsibility. None of that is in this post though)
The Secretary for Education Karen Sewell has just had a minimum pay rise of $30,000p.a. Ironically the same 4% that teachers are after. Here is some maths for Mrs Sewell. Her 4% is 30,000 dollars. 4% of a teachers salary of around $65k is $2,600 dollars.
Every time I think John Key can’t get any more cynical and hypocritical in his messaging, he manages to take it to a new level. Apparently spending money on the education system will create “a noose around the neck of young New Zealanders”…
Trying to get my head around the economic arguments going on. Hearing contradictory things. Who’s telling the truth? ls Labour’s new overseas investment policy Stalinism that will ruin the economy, as Key claimed on Monday and Tuesday? Or is the same as the existing law, as Key claimed on Monday and Tuesday?
National have been running some fine lines of bullshit lately. Keith Ng’s recent post at Public Address calls them out on two of them. The first, National is trying to claim credit for low inflation. The Second, National is trying to claim that recent wage increases have been better than the previous 9 years. Keith takes the bullshit apart – dirty work, but someone has to do it.
For some reason, the Nats hate public education. Even an elitist fool should be able to see that a well-educated workforce is valuable and public education is the cheapest way to achieve it. Yet National is attacking education at every level. The latest ‘offer’ to the secondary teachers would see them take 2 years of after-inflation pay cuts.
The government is refusing to step up to save IHC providers that are insolvent due to a recent court case that resulted in IHC carers being awarded hundreds of millions in back wages. The government is washing its hands, even though it is the primary funder of the services. Will the Nats let IHC collapse or will they use this to bring in their corporate mates?
The just released Income Survey is more evidence of the Key Government’s failure to deliver for working Kiwis. After inflation, this is the third successive year in which the median income of New Zealanders has fallen. It’s now nearly 5% lower than when National came to power. This year alone, the median income fell 3.5%.
As you sit there reading this, think about how industrial action is growing across the country – Secondary teachers, Junior Doctors, Radiographers, State Servants, Actors. There is a lot more to come as National and business try to force wages down. Do you want to wait for them to come for you?
John Key tells a businesswoman he “would love to see wages drop“. National makes sub-inflation minimum wage increase. National makes no effort to […]
I thought Peter Jackson was an ordinary guy made good who hadn’t let success make him an elitist prick. I was wrong. New Zealand taxpayers contributed hundreds of millions to his <em>Lord of the Rings</em> trilogy and what thanks do we get? Threats of capital flight, which will probably soon be followed by demands for taxpayer subsidies.
