Lowering wages in NZ should not be the response to redundancies
The Council of Trade Unions is cautioning against a race to the bottom in wages, as a response to two major job
offshoring announcements this week.
"The solution to offshoring is not to lower wages and conditions such as annual leave here. The solution lies in lifting
the value of goods and services," CTU president Helen Kelly said today.
"Investing in manufacturing opportunities, carrying on with programmes to lift skills, and leveraging new technologies
will create high value jobs in New Zealand at a faster rate than a business model which outsources production."
"The CTU's immediate concern right now is with the workers affected by the job losses, in what is a very distressing
time for them. They need the support of government agencies and other groups such as industry training organisations to
ensure they are getting all possible assistance. Unions will challenge employer decisions to relocate offshore and will
also work closely with affected workers."
"Both ANZ National and Fisher & Paykel are profitable companies in New Zealand, and these were good New Zealand jobs that didn't need to be lost. In
the case of ANZ National, whose profit last year was $1.1 billion, the Reserve Bank should step in to prevent this
unnecessary move."
"The CTU has also submitted to the select committee enquiry into the future monetary policy framework on ways to relieve
pressure on the exchange rate and reduce interest rates. Fundamentally, the Official Cash Rate should not have to be the
only tool to address inflation."
"Monetary policy needs to have specific reference to the impact of a high exchange rate on export performance and
employment, and the OCR decision should be made by a small number of people as is the case overseas, rather than the
Governor alone. In addition, other options such as interest-linked savings, removing loss ring-fencing for rental
property investors, and capital gains tax on investment need to be considered."
"Workers in many countries face the threat of offshoring" said Helen Kelly. "Unions are also part of an international
movement of workers, and just as we stand up for decent jobs for New Zealand workers, we also stand up for the rights
and conditions of workers in developing countries. The goal needs to be lifting everyone's income, not a race to the
bottom," she said.
Ends.