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No.238 | 1 September 2005 | Essential Information on an Essential Issue |
of key events over the last few weeks. TAX CUTS STILL LEAVE CHILDREN IN POVERTY EVERY CHILD COUNTS CAMPAIGN HARD TO SWALLOW LABOUR'S PLEDGE ON YOUTH TRANSITIONS GREEN'S WELFARE AND EMPLOYMENT POLICIES POLICE SHORTAGE A SKILLS SHORTAGE SKILLS SHORTAGE IS BUSINESS' BIGGEST ELECTION ISSUE NATS CALL FOR SHAKE-UP OF EMPLOYMENT LAW PARTY POLICIES TO ADDRESS SKILLS SHORTAGE UNIONS LAUNCH LEARNING REPS VOICES ON TAX LAST Letter NEXT Letter Download this issue as a PDF file
Index to Features
13 August 2005Newspaper job ads numbers fell in July for the third straight month, according the ANZ survey. But the survey notes that internet-based job ads were up, symptomatic of an increasing trend towards internet job search sites. 14 August 2005The Equal Employment Opportunities Trust encourages parents to complete its survey on parenting and paid work. It asks parents if and why they wanted to do paid work after having children and what workplace measures helped them, or could help them, contribute effectively at work. The survey, which is live for three weeks from today, can be found here. 15 August 2005Over 600 people have requested job applications to work at Waitara's yet to be commissioned Anzco meat processing plant. 40 jobs are to be filled. 16 August 2005More than 70 Hawkes Bay jobs are lost as bacon, ham and smallgoods business Medallion Foods is sold to the Carterton-based Premier Bacon Co. Nearly eight out of 10 UK building firms had trouble recruiting staff last year and the labour shortage is expected to continue beyond the end of 2005. 17 August 2005The number of people claiming an unemployment benefit in the UK has continued to rise for the last six consecutive months. 18 August 2005The NZ Labour Party releases its election tax package that lifts the income threshold so that more working families will be eligible for benefits from the Working for Families package. The Labour Party has promised to spend an extra $911 million a year in its election pledges but, according the New Zealand Herald, at least 1.6 million NZers won't gain anything from the spending. At least that many people don't have the incomes and family sizes to qualify for either family support or the rates rebates, don't have student loans, don't need the added cataract, knee or hip replacements, nor plan to become a Modern Apprentice. 19 August 2005At least 71 jobs are lost as the Outdoor Retail Group goes into receivership, closing the doors on its computer and DVD retailing chain Central Park Interactive. Staff of its other division, cycling and camping retail chain Pack & Pedal, are yet to learn of the fate their jobs. 22 August 2005The political campaign for the 2005 national election officially begins. Half of NZ'ers those earning $22,000 or less will get $7 or less per week from the National Party tax package. Those on $50,000 will get about $28/wk in the first year and rising after that. The Public Service Association says National's plan to provide tax cuts are only affordable if public services are slashed. PSA national secretary Richard Wagstaff: "The tax policy announced today doesn't add up and hides National's real agenda to reduce the size of government permanently." Labour promises to extend its promised 20hr/wk free childcare for the children of working parents to all childcare centres with qualified staff not just community-based ones. Two years ago Minister of Education Trevor Mallard said government would only provide the support for community-based childcare providers. About 40% of children in care attend private childcare centres and the Labour Party now acknowledges that many of these don't have access to a community-based centre. 23 August 2005The Every Child Counts political forum, is held in Wellington. At the forum, the political parties present their children's policies. Presenting politicians include: ACT MP Muriel Newman, Green MP Party Rod Donald, Labour Cabinet Minister Steve Maharey, Maori Party spokesperson Monte Ohia, National MP Paul Hutchison, NZ First MP Bill Gudgeon, Progressive MP Matt Robson and United Future MP Judith Turner. The full programme for the Jobs Australia 2005 National Conference is published. The conference, to be held 5-7 September in Melbourne, will have a range of international and Australian speakers, including politicians and spokespersons for NGOs. In Australia, more than 75,700 disabled people will get less money under the government's controversial welfare-to-work package. Opposition Senator Penny Wong says that as people on disability support (invalids benefits) who are unable to find work will be pushed onto a new allowance and would leave them at least $77 a fortnight worse off than they are now. Wong says the government should be able to encourage people to get jobs without devastating the family budget. Wong: "Many people who depend on welfare payments are prepared to work, but aren't prepared for work. Instead of moving people from one welfare payment to a lower welfare payment, the Howard government should be preparing them for work by investing in their skills and encouraging employers." 24 August 2005Minister of Labour Paul Swain tells Business NZ's election conference that if it remains in government, the Labour Party doesn't intend to pursue mandatory pay equity or mandatory flexible working hours nor will it legislate to strengthen the role of multi-employer collective agreements. To address the skills shortage, the Progressive Party would offer "skill shortage scholarships" that would include total fees or training costs and a living allowance. The intention is to encourage people to train in areas of urgent need. Leader Jim Anderton says those who won the scholarships would be bonded to work in NZ for the length of time they received the scholarship. 25 August 2005The Progressive Party points out that over a 30-year period, the crime rate has mirrored the unemployment rate. Leader Jim Anderton says strong intervention policies in prisons, matched with strong economic growth, are good crime deterrents. Anderton also says there is a section of people who are currently unemployed because they are struggling with drug and alcohol problems. His party would raise the drinking age to 20-yrs and increase work on the prevention of substance abuse to address this problem. 26 August 2005Volvo Cars, a division of Ford Motor Corporation, is to lay-off up to 1,500 of its global workforce. Further Ford redundancies are expected.
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TAX CUTS STILL LEAVE CHILDREN IN POVERTYEarlier this year, a Unicef report on child poverty showed that New Zealand had the fourth highest child poverty rate out of 26 developed countries measured by family incomes falling below 50% of the median wage. Only Italy, Mexico and the United States had child poverty rates at higher levels. The New Zealand Herald reports that under a continued Labour government, if all other international comparisons remained the same, then New Zealand would improve to fifth lowest child poverty rate lower than all OECD nations except the Scandinavian countries. Under National's policies, New Zealand would come in around the middle of the OECD table. National's tax package would cancel this final instalment of the Working for Families package. National welfare spokeswoman Judith Collins says that National's tax policy is "clearly aimed at working people" and confirmed that most welfare benefits will not be adjusted, apart from the usual increases to compensate for inflation. She says that National's policy would give beneficiaries an incentive to go back to work. The party would cut the tax rate on earnings between $180 and $240 per week from 21% to 15% in the dollar, and on earnings between $240 and $730 per week from 33% to 19%. Source New Zealand Herald 24 August 2005 "Tax plans still leave children in poverty" by Simon Collins; New Zealand Herald Garth George column 25 August 2005; Donna Wynd New Zealand Herald election year blog 25 August 2005.
EVERY CHILD COUNTS CAMPAIGNEvery Child Counts, a coalition backed by agencies such as Bernardo's and Plunket, has just published the answers given by the political parties to 32 questions on children's issues. But the Green Party is the only one promising to end child poverty by a specific date in its case, by 2010. Labour will not set a target date, saying that setting targets "of this sort" can be "a counter-productive exercise". Labour however says it is committed to constantly measuring progress in reducing child poverty and reporting on it annually through the Social Report. National also says it will not set a target date to end child poverty. It says that it has taken 30 years of welfare dependency to become ingrained and "...it will take some time to remove it and replace with a culture of self-esteem, personal responsibility and worth." Both Labour and National have endorsed the Family Start programme which provides long-term intensive support to at-risk families in 16 locations. National started the scheme in 1999 and Labour has promised to extend it to at least 14 more sites. But Davies says a 2003 evaluation found the scheme had "mixed results". She urged the parties to look at Britain's Sure Start programme, which works with local councils to establish children's centres in every community by 2010 providing childcare, pre-birth education, parental support and other services. Davies: "We need to be pulling together some of the bits and pieces we have in different silos of government departments and make them much more integrated. We still have too much of a national focus. What we should be looking for is to have much more regionally and locally driven programmes with research and real-time evaluation attached to them."
Source New Zealand Herald 29 August 2005 "Top parties fail child poverty test" by Simon Collins.
HARD TO SWALLOWDonna Wynd points out that in New Zealand there was almost no call for foodbanks prior to the 1990s. Wynd: "Lack of income is the key cause of foodbank use, and incomes for foodbank users have fallen in real terms since the 1991 benefit cuts. While most foodbank users are beneficiaries, increasing numbers are low-paid workers. Two decades ago we were a much poorer country as measured by economic statistics, but we could feed our children without resort to foodbanks. If this is the trend in economic good times, what of the future when the next recession strikes?" Shirley Maihi, Principal of Finlayson Park School in Auckland says that school breakfasts in some schools are absolutely essential. Along with other schools serving low-income communities, Finlayson Park provides breakfast for pupils on a daily basis even though it is not currently funded to do so. Maihi says this is because both the need and the rewards are so great: "We call it brain food, and it makes a huge difference to our students. Children simply cannot learn effectively if they are hungry. We've seen too many promising students fall behind, right from the very beginning of their school days, trying to learn through a hungry haze."
Sources CPAG press release 15 August 2005 " Kids caught in rising foodbank tide"; The Christchurch Press 16 August 2005 "Call for schools to offer breakfast"; The Dominion Post 16 August 2005 "Poverty group calls for free school breakfasts".LABOUR'S PLEDGE ON YOUTH TRANSITIONSThe Labour Party says that an estimated 92% of 15-to-19 year olds are engaged in some form of employment, education, or training, but warns that we must keep intensifying our efforts for the 8% who are still in danger of slipping through the cracks. During the last two terms in government, Labour has: introduced the Modern Apprenticeship scheme that has created work-based learning opportunities for close to 8,000 young people. introduced the Gateway programme that builds pathways for senior secondary school students into work-based learning, and to encourage better partnerships between schools and local businesses. Labour's pledges for its next term in government include: providing funding for an additional 5,000 Modern Apprenticeship places, taking the total number of Modern Apprentices to 14,000 in 2008 expanding the Gateway programme, introducing a Youth Apprenticeships pilot that will provide opportunities for young people to gain credits towards their apprenticeships while still at school. Source Labour Party Press Release 29 August 2005 "Youth Transitions - Labour's Vision."GREEN'S WELFARE AND EMPLOYMENT POLICIESBradford says it's time to stop blaming beneficiaries for their situation and work towards a benefit system that is both simpler and fairer. But she says that as important as simplification is, the government shouldn't attempt to achieve simplicity by cutting corners at beneficiaries' expense. She is referring to Labour's intention to scrap the Special Benefit as part of the implementation of the Working for Families package. The Greens are calling for the Special Benefit to be retained " until general benefit levels are enough to live on or something better is put in its place." opposing any form of forced work-for-the-dole, but facilitate beneficiaries doing voluntary work, ensuring Work & Income gives beneficiaries their full entitlements, throwing out Social Security Act 1964 for new law based on simplicity, sufficiency and universality, making Working for Families non-discriminatory against beneficiaries, create a Universal Child Benefit, like the old family benefit, which can be capitalised for a home deposit, removing income penalties for DPB recipients who can't or won't name the father of their child. Source Media release from the Green Party by Sue Bradford, 30 August 2005, "Greens' Work & Income policies give everyone a fair go".POLICE SHORTAGE A SKILLS SHORTAGENew Zealand has, on average, one frontline police for every 554 people, a significantly greater ratio than in Australia, the United States or the United Kingdom. And the Herald says that in Counties Manukau, which has one of the country's highest crime rates, there is just one sworn officer for 675 people and in some the neighbourhoods the figure is over 1,000 people per police officer. Minister of Police George Hawkins says the biggest problem facing police is the severe labour shortage caused by low unemployment. Attempts to attract school leavers to police training has resulted in serious retention problems and the police have traditionally not looked towards school leavers as recruits because they lack maturity and life experience. Hawkins believes the problem is not just about numbers. "You can have more people if you want to lower standards." The police recruited 73 British "bobbies" in 2003 and they are planning to bring in 80 to 100 more officers primarily from Britain, Canada and Australia to go through police college in April 2006. Police general manager Wayne Annan says there is huge interest by foreign police officers to come and work in New Zealand but it's not the preferred recruiting option and he expects strong public reaction to the police decision to recruit from overseas. Annan: "I think it's a feature of the labour market, really. It's hard for any employer to recruit at the moment." Source New Zealand Herald, 29 August 2005, "Manifestos miss police recruiting dilemma" by Helen Tunnah; New Zealand Herald, 29 August 2005, "Unrealistic to double police, say parties" by Helen Tunnah; New Zealand Herald, 23 August 2005, "Police search abroad for staff" by Louisa Cleave.
SKILLS SHORTAGE IS BUSINESS' BIGGEST ELECTION ISSUESource TVNZ/RadioNZ/ASB Business, 25 August 2005, "Skills shortage key issue of business".NATS CALL FOR SHAKE-UP OF EMPLOYMENT LAWEnglish says that during its tenure in government Labour has kept the lid on money for skills training while it was "blowing out hundreds of millions on dodgy low-value tertiary courses". National is yet to release the fine details of its own tertiary education and workplace training policy but English says it would see more money spent on trades and skills training, and as on apprenticeships. However, English criticises the government's slant towards Modern Apprenticeships: "Labour put a big emphasis on the apprenticeship brand for political purposes and have pretty much ignored the wider issue of raising skills across the board". Source The New Zealand Herald, 29 August 2005, "Nats pledge to tackle skills shortage" by Adam Bennett.
PARTY POLICIES TO ADDRESS SKILLS SHORTAGELabour is offering 5,000 more Modern Apprenticeship places and providing opportunities for secondary school students to work towards apprenticeships. National would liberalise employment law and raise the funding cap for industry training. The Progressives would do "skills shortage stocktakes" to identify areas of most urgent need then offer scholarships in those areas, and they would double the current number of people in apprenticeships and industry training by 2007. NZ First would ensure all young people are either in work or training, introduce a "community wage" to top up pay for apprentices, review Industry Training Organisations, and extend Modern Apprenticeships to older workers. United Future would significantly increase the number of Modern Apprenticeships. The Greens would provide more apprenticeships and encourage women, Maori and Pacific Islanders to train in industries in which they are currently underrepresented. Act would lower taxes to lift relative wages. The Maori Party would provide more opportunities for training with cadetships.
UNIONS LAUNCH LEARNING REPSCTU Secretary Carol Beaumont says the initiative is actually the start of a major culture change involving workers, companies and state enterprises. Beaumont: "We see the Learning Reps project as a fundamental part of a careful building of a learning culture at work with spin-offs affecting the whole structure of work and workplace relationships. No-one any longer can afford to have the view that work is what happens when you've finished education. This is particularly so when we know that 80% of the workforce of 2015 is already in the workforce so if we want to upskill the workforce we need to have a solid focus on learning at work..." The project is inspired by similar successful measures in the United Kingdom run by the UK Trades Union Congress. Learning Reps are trained to undertake the role, and there will be a workplace agreement which sets out how the Rep will undertake their duties and what part the employer will play in helping them out. Beaumont: "Being required to meet an enterprise's current training needs might ensure compliance from workers but it isn't going to trigger a passion for learning. The Learning Reps programme can tap into workers aspirations and use the motivation of opportunity, personal growth and sometimes second chance, to build the culture change we need ..." The CTU Learning Reps website can be found here. Source brochure from NZ Council of Trade Unions; speech from Carol Beaumont, Secretary_ NZCTU 15 August 2005 "The Launch of the Learning Representatives Project"
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