Labour seeks to bolster union ties

Labour moved yesterday to strengthen its ties with the union movement by releasing its work and wages policy which has an emphasis on returning wage negotiation strength back to the workers.

The top platform of the policy is industry standards agreements, which include the formation of a "workplace commission" established especially for the purpose of dealing with the standards agreements.

The commission would be part of the Employment Relations Authority.

Employers appear to be sidelined in the policy, shown on page five where the policy says that a standard agreement "will usually be initiated by a union or group of unions... [employers could also initiate it]".

The application would be in respect of an "industry" as defined by the applicants, giving evidence of similar functions, processes, products and services.

Given the enthusiasm with which employers greeted the Employment Contracts Act and individual contracts, a return to national awards, under the guise of industry standards, is not likely to be welcomed widely.

Labour leader Phil Goff said while launching the policy in Hamilton that New Zealanders needed a decent wage, a fair go at work and confidence they could get jobs to secure their future.

"But growing numbers of Kiwis are struggling to make ends meet and see no end in sight as this Government concentrates its effort on the already well-off at the expense of the rest."

Those at the top had received billions of dollars of tax cuts in the last two years but the vast majority of New Zealanders were worse off now than they were three years ago, he said.

Other parts of the policy included repealing National's 90-day law, amending the Holidays Act to ensure 11 days of public holidays each year, regardless of them falling on a weekend day, and restoring reinstatement as the primary remedy when an employee has been unjustifiably dismissed.

Otago-Southland Employers Association chief executive John Scandrett focused on the difficulties associated with the theme of "striking a balance".

"If you are looking at introducing uniform national minimum wages, let's say in the hotel industry, how can one justify paying balanced wage rates equally in a very buoyant Auckland services sector market and in a truly struggling Queenstown tourist market.

"The net outcome in such situations will be far removed from balancing industry performance and may see job losses as southern organisations rationalise staffing levels to try and remain viable."

The recent services sector survey showed Otago-Southland's hospitality, tourism and retail activities were deeply in contraction at an all-time low of 34.4 points. The comparable North Island results were well above the 50-point expansionary mode.

Mr Goff released the policy at the First Union regional conference.First Union was formed on October 1 as an amalgamation of Finsec and the National Distribution Union.

Its general secretary, Robert Reid, said low wages were a structural, but avoidable, problem and a structural solution was needed.

"There are many industries that differ hugely in wages paid to their workers, for the same work." The food retail industry was a "classic example".

Retail workers at Countdown, where there were greater numbers of workers bargaining collectively, were paid much more than those at Foodstuffs' Pak'n Save and New World supermarkets were more workers were on individual agreements.

The exceptions were those at Pak'n Save who had had a union collective for two to three years.

Mr Scandrett said in an ideal world, raising the minimum wage to $15 per hour might carry merit in selected situations. The reality was that step would serve to reset all wage rate schedules and consequently, in many ways, be a driver in reducing job opportunities across the board.

 

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