As a New Zealander, it’s vital to think about voting in a way that counts. Our lives are affected by the decisions made by our politicians – Council of Trade Unions have laid out for you ten key issues to think about as you make your decision on where to place your vote in the 2014 election.

1. JUST VOTE
Your vote has never been this important
As a New Zealander, it’s vital to think about voting in a way that counts.
Our lives are affected by the decisions made by our politicians – we’ve laid out for you
ten key issues to think about as you make your decision
on where to place your vote in the 2014 election.
DYING ON THE JOB
Decades of deregulation have made our workplaces downright dangerous
The 2010 tragedy at
Pike River Mine laid
bare the appalling
truth about New
Zealand work
environments:
they some of the
worst death and
injury rates of any
developed nation.
Every year in New Zealand workplaces…
75
people
are
killed
400
people are
seriously
injured
1 in 10
people
are
injured
200,000
make
ACC
claims
600-900
people die each year from work-related
diseases, such as asbestos*-related illnesses
vDID YOU KNOW that New Zealand has not banned imports
of products with asbestos? Other countries have.
The cost of
workplace
accidents is at least
$3.5 billion yearly
Four in every
100,000 workers
die from
workplace injury
in NZ every year
NEW ZEALAND’S LOW-WAGE ECONOMY
How the policies of the past thirty years have driven us there
While GDP* per
person has risen
substantially over the
last 30 years, our
average wages have
barely risen. The lion’s
share of growth gains
have gone to capital,
not labour.
*Gross Domestic Product
36
34
32
30
28
26
24
22
Real average hourly wage
compared to productivity gains
1989 2013
If hourly wage had followed
productivity gains
How it actually rose
against CPI*
From 1986 to 2013, our measured labour productivity rose 58%, while the average hourly
wage rose just 18% after inflation. The cost of labour to the employer has decreased 6.6%
over the past two decades. Employers could afford to pay more. (*Consumer Price Index)
Sharing the GDP
The 1991
Employment
Contracts Act
dismantled the
awards system
and changed the
balance in the
workplace, which
made collective
wage bargaining
extremely difficult.
You’re twice as
likely to get a pay
increase if you're
on a collective
agreement.
Employers
could afford
to pay more
and have been
abdicating
paying higher
wages.
The positive effects of higher wages
Higher
wages
and fair
treatment
Better
motivated
workers –
more effort
and thought
into work
= more
productivity
Employers
make the most
of investment
into workers =
spending money
on equipment
and working
methods
Effect of
increased
spending power
of workers
creates more
demand for
goods and
services
This would be possible with better labour laws
Pre ’80s
Today
Income to
shareholders,
investors,
lenders
60%40%
50% 50%
Income
to wage
and salary
earners
HOURLYWAGE
Cleaner. Casual worker.
Varying hours. Can find
out on the day if he has
work. Employed by a large
corporate commercial
cleaning contracting company.
Has had to take a second
job. Company lost a contract
one month and he had no
work for a week with no
pay. On minimum wage.
Only has work for 45 weeks
of the year. Work is often
restructured.
Glenda, 1980s Samuel, 2014
Cleaner at the
local school. Employed
directly by the school.
Rostered a month ahead.
Works 40 hours a week.
Belongs to union. Has
standard holidays. Paid
extra for overtime and
weekend work. Has had
job for five years, with
three wage increases.
Paid 52 weeks of the
year.
Why was job security better in the past?
Workers’ rights have eroded over the past three decades. Only 20% of the
workforce belongs to a union now, compared to 70% in the 1980s.
The current
government
wants to bring in
a raft of changes
that will remove
guaranteed meal
breaks, allow
companies to walk
away from pay
negotiations and
remove automatic
collective
agreement
coverage for new
workers.
WORKERS’ RIGHTS
Why insecure work exists and why it’s a problem
In 2012, at
least 30% of
the workforce
were insecure or
unemployed.
It’s thought the
true numbers
could be as high
as 40-50%.
Insecure work is any job that denies workers stability
and control of their work situation.
Insecure work is characterised by:
Uncertainty
over how
long the
job lasts
or when
it can be
terminated
Limited
worker
control over
hours, tasks,
or safe work
practices
Low or
fluctuating
pay
Limited access
to sick leave,
domestic leave
or other benefits
No or
limited
chance to
gain skills
Lack of
rights or
protection
Lack of union
representation
Occupations
especially affected:
Cleaning
and
catering
Education
and
training
Retail
Care
of the
elderly
Core Public
Sector
Many
insecure
workers have
multiple jobs
and struggle
to make ends
meet.
HIGH UNEMPLOYMENT
Our labour market is sick
Statistics show our
GDP has grown,
but unemployment
hardly falls.
Why aren’t we
converting our
economic growth
into more jobs?
Here’s our current situation
154,000
unemployed
– that’s 6% of
our workforce
254,000
jobless
96,000
under-
employed
30%-50%
in insecure work
+unsafe working
conditions
50k
45k
40k
35k
30k
25k
GDP per capita and average wage
1965 2014
GDP per capita
Real wage
New Zealand went from a high-wage economy to a low-wage economy.
Workers’ rights to bargain have been eroded by changes in legislation.
Between 1982 and 2012
GDP
per
person
up 52%
WAGES
up 11.5%
Growth in
the economy
has gone not
to wages but
to investors,
shareholders
and lenders.
34
29
24
19
EMPLOYMENT
CONTRACTS
ACT 1991
INCOME GAP
Are you getting your fair share?
Growing income
inequality means
that many people
are missing out on
a fair share of the
income generated
in the eonomy.
50% increase
for the top 10%
8% decrease
for the bottom 10%
Between 1982 and 2012, after housing costs, there was a 50% increase in disposable
income for the top 10% of income earners and an 8% decrease for the bottom 10%.
The gains from economic growth over these 30 years went mainly to the rich.
Disposable income after housing costs, 1982–2012
1953 2011
500k
400k
300k
200k
100k
Average real pre-tax income in 2011 dollars
Top 1%
Bottom 90%
In New Zealand, the top 1% received 11 times the 2011 income of the bottom 90%.
NBR rich list
What are they worth?
1986 - $12 billion
2013 - $60 billion
TOP
10%
Real
incomes
1982
Real
incomes
2013
76% rise
$59.7k
$105.1k
BOTTOM
10%
16% rise
$12.1k
$14k
The increasing gap
Meanwhile…
One in four
children in New Zealand
live in poverty
Benefits – are
we looking
after Kiwis in
need?
In 2011, New
Zealand had the
lowest benefits paid,
compared to
average wages,
in around
33 OECD members.
For example, we
ranked last for a
two-earner couple
with children on
two-thirds of the
average wage.
What has caused the increasing rise in income inequality?
Employment
Contracts
Act – enabled
employers
to hold down
wages
Harsh
cuts In
benefit
levels
The recession
has had a
greater impact
on those on
lower incomes
Tax cuts
received by
those on
higher incomes
Globalisation
National’s tax cuts come at a cost
Greater
inequality
Poorer
schools
Poorer
hospitals
Inadequate
public
transport
Privatisation
of roads and
prisons
Slack
workplace
regulations
TAXES
Taxes – the price we pay for a civilised society
Taxes pay for the
things we all need. Tax
cuts, more often than
not, end up as cuts
to essential services.
The end result is
even more disparity
between the haves
and the have-nots.
NZ is almost alone
among developed
countries
NO
capital gains tax
NO
tax on capital
transactions
NO
tax on deceased
estates
NO
tax on gifts
Did you know?
New Zealand has
lower tax for
high income earners
than most
OECD countries?
33%
New Zealand
42%
OECD
average
49%
Australia
Our taxes are
already low – in
fact, on average
they are the third
lowest in the
OECD!
$15m
$14m
$13m
$12m
National’s plan for health and education
2014 2018
Here are National’s forecasts for two key government services over the next four years if it
wins the electiontaking into account inflation and population growth. It plans to used money
saved by cutting back on essential services to fund tax cuts.
Health
down by $1.8 billion
Education
down by $0.5 billion
National’s
planned cuts
GST
creates a big chunk
of revenue, but hits
the least well-off
the most
SQUEEZING PUBLIC SERVICES
Starving our public services
The amount our
government
spends on
public services
is already low
by international
standards. And
under National,
there are more
cuts coming.
2013 SOCIAL
SPENDING AS A
PERCENTAGE
OF GDP
We rank low by
international
standards.
Public services cover things like
ESTONIA
US
NEWZEALAND
UK
GERMANY
SPAIN
FRANCE
GREECE
Health Education Housing Benefits Social assistance
Our health system is ill!
Extra costs
+
Ageing population
+
More expensive
treatments
Underfunding of
$700 million
over the past
three years
Unmet health
needs for 25%
of New
Zealanders
Free
education?
Yeah, right.
Kiwis pay $360
million a year
in “voluntary”
donations as well
as fundraising
to help prop up
the education
systems.
Do we help
those in
need?
Benefits were
cut by up to 25%
in 1991 and
have never been
increased since,
except for inflation
adjustments.
Now a quarter
of our children
live in poverty,
the majority in
households which
depend on state
support.
Budget cuts on the horizon
Bill English want to “cut core Crown spending” to just 25% of GDP – down
from 35% in 2009. In that case, these cuts would only be the beginning…
Health
x
12.3%
Early
Education
x
6.9%
Primary
x
7.5%
Secondary
x
3.1%
Tertiary
x
8.7%
Social
Welfare
x
6%
A QUARTEROF NEW ZEALAND CHILDREN LIVE IN POVERTY
2 OUT OF 5OF THEM ARE FROM HOUSEHOLDS WHERE AT
LEAST ONE ADULT IS IN FULL TIME WORK OR SELF EMPLOYED
HOUSING HIKES
It’s getting harder for us Kiwis to buy our own homes
House buying is
increasingly out
of reach of many
New Zealanders,
as prices soar and
incomes stagnate,
while those renting
or in state housing
face equally severe
problems.
House price to disposable income ratio
Our house-price-to-average-net-income ratio is
further above its long term average than in any
other developed country (except Belgium).
1980
2013
The average house
used to cost 2
times the yearly
average net income
– manageable for
most people. Now a
house costs 5 times
the average yearly
income.
International
standards say we
shouldn’t spend
more than 30%
of our incomes on
housing.
But 27% of
Kiwis spend
more than
that.
And 40% of
that group have
unmanageably
high housing
costs.
Public housing
Only 69,000 (4%) of
our housing is state
housing. Fewer than
we had in 1992, and
the population has
grown by almost a
third. (Public housing
in some Western
European countries is
as much as 20%)
SELLING OFF OUR ASSETS
And why we’re all worse off
The National
Government’s
determination to
push ahead with
selling off state-
owned assets
was driven by
two things: pure
ideology, and
vested interests in
the financial sector
with close ties to
the National Party.
Selling off our assets – a financially smart idea?
Not according to Treasury figures…
Taxpayers worse off by $145 million each year
Genesis
Energy
Meridian
Energy
Mighty
River
Power
Air New
Zealand
Rembember
the sales?
NZ RAIL
Asset-stripped
and run down
costing $4 billion
to fix
TELECOM
Huge profits paid
out to new owners,
competition stymied,
govt left to fund
broadband
AIR NZ
Bankrupted
by private
owners
Who were the winners? Not the “mums and dads”
Dams were built to
save Kiwis money.
Now the sales line
the pockets of private
enterprise.
NZ Rail was built
using our taxes,
for efficient and
economical goods
and passenger
transport, keeping big
trucks off the roads.
Kiwibank was
started as real
competition to the big
Australian banks and
brought back the idea
of local branches.
They were built with
our taxes, for the
common good.
ROCK STAR ECONOMY?
We’re singing the wrong tunes
There’s been talk
of New Zealand’s
“rock star
economy” in the
financial media,
but if you look
five years beyond
the Christchurch
construction boom
and ask what
will sustain our
jobs and living
standards, there’s
nothing there.
The songs we’re being sung are broken records
“The
Market
Knows
Best”
“Government
Can’t Pick
Winners (so
don’t even try to
think about it)”
“Inflation
Targeting
is All You
Need”
“China Will
Keep Us
Afloat”
“Budget
Surpluses
Are All That
Matters”
“Beneficiaries
Are Lazy”
20 years of:
• deregulation
• an unsustainable exchange rate
• low-wage policies
• union busting
• uncontrolled overseas borrowing
• shrinking government
=
growth rate of income per capita stuck
at 1% or below each year
The neoliberal legacy:
• reliance on agriculture
• shrinking manufacturing sector
• shameless price-gouging in electricity,
gas and telecommunications
• rise in huge personal fortunes
(after looting public assets)
What did we get?
The reality is different to the songs we've been hearing…The main
effect of
neoliberalism
in New
Zealand has
been a radical
change in who
benefits from
the economy
– and not the
promised
faster
economic
growth.
115
110
100
95
90
85
80
1980 2012
NZ per capita GDP in US$ relative to OECD average
OECD average
New Zealand
Authorised by Helen Kelly, NZCTU, Level 7, 178 Willis Street, Wellington
Download a pdf: www.union.org.nz/election2014/full-infographic.pdf