INDEPENDENT NEWS

Productivity Commission Report Shows Need For Income Insurance At Redundancy

Published: Tue 20 Feb 2024 11:53 AM
The Productivity Commission report released today on the impact that redundancy has on New Zealand workers shows the need for the protection that income insurance provides, said CTU President Richard Wagstaff
The report, using a detailed study of Aotearoa New Zealand workers involuntarily laid off, shows only 50 per cent of displaced workers find new jobs immediately after layoff and only two-thirds find new jobs within six months.
“New Zealand workers are among those with the lowest levels of redundancy protection in the world, with protection levels just below those of Paraguay and Colombia,” said Wagstaff.
“The tripartite work to address this problem through an income insurance scheme was stopped by the new Government, despite rising unemployment and the likelihood of greater supply chain disruption in the future.
“As New Zealand deals with a challenging global economy, now should be the time to give workers more income and economic security - rather than less. Social Insurance would have given workers the security that is commonplace in successful economies overseas.
“The research also showed that the “earnings of workers who find new employment take almost three years to return to pre-layoff levels”. This backs previous findings from the OECD which showed that New Zealand workers faced a much higher wage scarring than workers elsewhere in the world.
“With the Government cancelling social insurance, bringing back 90-day trials, ending Fair Pay Agreements, and cutting the minimum wage and welfare in real terms, they seemed determined to reduce security rather than increase it,” said Wagstaff.
New Zealand Council of Trade Unions
Te Kauae Kaimahi
The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.
Contact NZCTU
Website:
Twitter:
YouTube:
Phone:
Facebook:
Physical Address:
Level 3, 79 Boulcott Street, Wellington.
Media Contact:
communications@nzctu.org.nz
Postal Address:
PO Box 6645, Marion Square, Wellington 6141.

Next in New Zealand politics

Poll Shows Three Quarters Of Wellingtonians Oppose Airport Sale
By: Wellington Airport
Christopher Luxon - Pre-Budget Speech To Auckland Business Chamber
By: New Zealand Government
New Zealand Supports UN Palestine Resolution
By: New Zealand Government
Greens Welcome Cross-party Approach To Climate Adaptation
By: Green Party
Climate Change – Mitigating The Risks And Costs
By: New Zealand Government
Protest March Against Fast-track Bill Announced For Auckland
By: Greenpeace
View as: DESKTOP | MOBILE © Scoop Media