Archive

Posts Tagged ‘tradespeople’

National signals epic fail – and waves flag of surrender (Part #Rua)

|

|

When National took office in November, 2008, unemployment was on the way up. From a record low of 3.4% in December 2007, it stood at 4.8% a year later.

By December 2009, the Quarter Household Labourforce Survey unemployment rate had risen  to 7.3%,

|

Source

|

The unemployment rate has since dropped back to 6.3%, for the December 2011 quarter. The slow drop from 7.3% to 6.3% has taken two years to achieve – and even the cause of that outcome is debateable, as New Zealand  “baby boomers”  start retiring and others  escape our stagnating economy to Australia.

I will make one thing clear; I do not lay blame nor responsibility for the doubling of our unemployment at the feet at National. The 2008  global banking crisis, ongoing recession, and massive debt-problems were issues beyond any political Party in any country. National inherited an international situation not of it’s direct making. (Though National does espouse a neo-liberal ideology which most certainly contributed to the crisis in capitalism.)

As an interesting aside; National and it’s groupies  (quite rightly) blame the 2008 recession for our high unemployment rate. However, they conveniently ignore the 2008 recession when engaging in beneficiary-bashing – then the issue of  increased unemployment is a “lifestyle choice”.

However, this blogger maintains that whilst the rise in unemployment was not National’s fault – that National has been derelict in it’s duty to address the crisis in joblessness. Bashing beneficiaries and painting them as lazy layabouts indulging in a “lifestyle choice” will not create one single job.

Blaming beneficiaries for a global situation they had no hand in making is an abrogation of responsibility by National.

I think we all know by now that National hasn’t a clue when it comes to job creation. They have no policies to generate jobs, and what what they have been doing has been tragically counter-productive,

|

Full Story

|

Full Story

|

This blogger is aware of one solo-mum who used the TIA to go through University; upskill; find a well-paid job;   move of welfare; and is now a tax-paying member of society. But I guess that is not the meme that National wants  entering the public consciousness. Their agenda is better served by scapegoating solo-mothers. (But never solo-dads.)

See:   Once upon a time there was a solo-mum

Paula Bennett  used the TIA to put herself through University; upskill; and then move on to a more well-paid benefit; she became Minister of Welfare.

See: Hypocrisy – thy name be National

Bennett’s axing of the TIA and other cutbacks in training and upskilling is what is colloquially known as a false economy.  It may save a few million bucks now – but will only delay the Day of Reckoning when we end up with an untrained, low-skilled society.

Even John Key made this a theme of his speech four years ago,

|

The National Party has an economic plan that will build the foundations for a better future.

  • We will focus on lifting medium-term economic performance and managing taxpayers’ money effectively.
  • We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.
  • We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.
  • We will invest in the infrastructure this country needs for productivity growth.
  • We will be more careful with how we spend the cash in the public purse, monitoring not just the quantity but also the quality of government spending.
  • We will concentrate on equipping young New Zealanders with the education they need for a 21st century global economy.
  • We will reduce the burden of compliance and bureaucracy, and we will say goodbye to the blind ideology that locks the private sector out of too many parts of our economy.
  • And we will do all of this while improving the public services that Kiwis have a right to expect.  

Because the hard truth is that Labour’s economic underperformance hasn’t delivered the social dividend they promised us.  

So, make no mistake: this election won’t be fought only on Labour’s economic legacy.  National will be asking Labour to front up on their social legacy, too. Many of the social problems the Government said it would solve have only got worse.

This time a year ago, I talked about the underclass that has been allowed to develop in New Zealand. Labour said the problem didn’t exist.  They said there was no underclass in New Zealand.

But who now could deny it?  2007 showed us its bitter fruits. The dramatic drive-by shooting of two-year-old Jhia Te Tua, caught in a battle between two gangs in Wanganui. The incidence of typhoid, a Third World disease, reaching a 20-year high. The horrific torture and eventual death of three-year-old Nia Glassie. The staggering discovery of a lost tribe of 6,000 children who are not enrolled at any school.” – John Key, “State of the Nation Speech”,  29 January 2008

|

John Key finished of that speech  by saying,

|

We will not sweep problems under the carpet.  We will not meet the country’s challenges by quietly lowering our expectations.”

|

So how has National performed?

Not so good, I’m afraid. (But that’s hardly surprising.)

Aside from cutting back on training, National seems to be engaged in a clandestine programme to actually keep wages depressed. Bill English admitted as much last year, on TVNZ’s Q+A when he let slip that New Zealands lower wages were a competitive advantage to Australia,

|

“”Well, it’s a way of competing, isn’t it? I mean, if we want to grow this economy, we need the capital – more capital per worker – and we’re competing for people as well…

“… we need to get on with competing with Australia. So if you take an area like tourism, we are competing with Australia. We’re trying to get Australians here instead of spending their tourist dollar in Australia.” – Bill English, 10 April 2011

|

Despite a low-wage economy being counter-intuitive for a multitude of common-sense reasons, it appears that – with National’s coded  assent – some local industries are attempting to drive down wages and develop a low-wage economy.

The current industrial disputes with AFFCO and Ports of Auckland Ltd are based purely around driving down wages  by cutting conditions; casualisation; and crushing unions in the workplace.

In October last year, the Seafood Industry Council (SeaFIC) told a ministerial inquiry into Foreign Charter Vessels that their industry needed more cheap foreign labour,

|

SeaFIC says FCVs hiring Asian crews was no different to companies going to low wage countries.

“Many New Zealand businesses have exported jobs previously done in New Zealand to other countries with wage rates considerably less than minimum wage rates in New Zealand.” ” – Source

|

See: Is this where New Zealand is heading?

See: Foreign fishing boats, Hobbits, and the National Guvmint

The prospect of slave crews on foreign fishing vessels in our territorial waters was a step too far, even for right-wing blogger and National Party cadre, David Farrar. He seemed horrified at what a ministerial inquiry and US journalist had uncovered. (Or perhaps it was faux-disgust, to try to distance National from slavery on New Zealand’s high seas. Who can tell.)

See: A Slave By Any Other Name

However, it was not a good look for one of our industries to be lobbying National to permit more cheap labour into New Zealand. Even if it was to be far out at sea, out-of-sight-out-of-mind, our US-based clients were not too happy when they found out what was going on under our noses, and from which we were seen to be profitting,

|

Full Story

|

Now, National’s inaction on job creation, training, and upskilling is beginning to bite. Reliance on the free market has not achieved any desirable, measurable goals. In fact, business is still luke-warm at hiring and training new staff.

Global finance and accounting firm Robert Half’s director director, Andrew Brushfield, expressed surprise at  the “cautious hiring predictions among New Zealand CFOs”. Really? No sh*t, Sherlock.

So where does that leave us;

  • A National government that is cutting training allowances
  • No government employment-creation programme to speak of
  • No state apprenticeship programme
  • Leaving job creation and training to the ‘market’
  • The ‘market’ being reluctant to generate employment

No wonder unemployment is still at 150,000.

And little wonder that, with 150,000 jobless, and no jobs training, the Christchurch re-build is now hampered by a shortage of skilled tradespeople,

|

Full Story

|

Full Story

|

To illustrate how short-sighted National (and it’s right wing hangers-on and sycophantic businesspeople),  Weltec offers seventeen week (full time) courses in the painting trade,

|

Source

|

If has been fourteen months since the tragic, devasting quake of 22 February 2011. We could have had a small army of in-training workforce ready to go by now.

FBG Developments managing director, Fletcher Glass,  could have his 50 painters – and more – instead of complaining bittlerly,

|

You can’t train skilled tradespeople in two years, and even if you could train 24,000 tradespeople, you would over-saturate the market after the rebuild.  If you get tradespeople from other parts of the country, you will deplete those places of tradespeople, and that will drive rates up. That will make house prices go up, so buying a house would be even less achievable.’

Hiring overseas workers would prevent Christchurch from turning its problem into a nationwide problem. If you need 6000 painters at the peak of the rebuild, that’s every painter in Dunedin and Wellington.” – Ibid

|

What absolute rubbish.

I have a sneaking suspicion that Mr Glass , like SeaFIC, is seeking  painters from Southeast Asia because they will accept minimum wage.

So we can add the following to the above list, as to why we have a shortage of trained tradespeople to take part in Christchurch’s re-build,

  • Employer self-interest

As a point of interest, the above media article also conducted a poll. It asked a simple question,

Should New Zealand fast track visas for overseas tradesmen?

Yes, we need more workers urgently
85 votes, 20.4%

No, we should train more NZers
332 votes, 79.6%

Nearly 80% of New Zealanders have enough common sense to realise what we should be doing. Obviously, none of those 80% are represented by any of National’s current  59 members of Parliament.

In case anyone is foolish enough to accuse this blogger of being fiscally naive, I refer to a BERL report, last year,

|

Industry training has billions in benefits – study

A new study suggests the country could lose between $7.2 and $15.1 billion dollars annually if the Government withdrew its investment in industry training.

The study by the Business and Economic Research Limited (BERL) sets out to quantify the costs and benefits of industry training both to businesses and to the country.

According to one model, it found a cut in all public funding towards industry training would result in a loss in gross domestic product of 0.6 to 1.8 percent by 2014, and between 2.9 and 6 percent by 2021.

That equated to a loss of between $1.2 and $3.7 billion annually in the short-term and between $7.2 and $15.1 billion in the long term.

BERL said under such a scenario, the loss of skilled labour would have a detrimental effect on the export sector, crimping its capacity and reducing its competitiveness as industries competed for a smaller pool of talent.

The report, commissioned by the Industry Training Federation, said the results underlined how the country’s skill levels could ”positively impact on the quality and value of the goods and services produced, and the standard of living in New Zealand”.

However, it also noted the economy was complex and warned that ”any attempts to prioritise or isolate particular industries, sectors, occupations or skills as being more or less important are economically unsound  “.  – Source

|

Training up unemployed New Zealanders who’ve lost their jobs over the last four years of recession; it’s not just a good idea or a “nice to have” – it’s bloody well obvious!

National’s faith in free market forces is admirable. But the rest of us gave up believing in Father Christmas, Easter Bunny, and Superman as we grew up. (Though having Superman around might be useful.)  It is high time that John Key and his Merry Band gave up their quasi-religious belief in the Invisible Hand of The Free Market.

Ideology will not re-build Christchurch. We need many hands – trained up and paid well – to do the work. 150,000 pair of hands!

I leave (almost) the last word to  Dear Leader,

|

We know this isn’t as good as it gets.  We know Kiwis deserve better than they are getting.  We are focused on the issues that matter and we have the ideas and the ability to bring this country forward. 

National is ambitious for New Zealand and we want New Zealanders to be ambitious for themselves. ” – John Key, “State of the Nation Speech”,  29 January 2008

|

Wouldn’t that be a fine thing?

|

|

= fs =

It’s a simple matter of choice.

1 September 2011 2 comments

With Labour’s release today, of their youth skills/employment policy, voters are now presented with the clearest choice yet between the two main parties. Aside from the issue of asset sales, where National has announced a programme of part-privatisation, and Labour opposes any/all privatisation, employment policy is the real litmus of both party’s essential core philosopies.

National prefers to step back and allow the “free market” to work it’s magic.

Labour has no hesitation in using the power of the State to address social-economic problems.

The National Business Review – hardly an organ for marxist-leninist groups – was  moved to report on an opinion piece penned by Duncan Garner;

“In a lengthy blog post, Unemployed youth would fill Eden Park, Duncan Garner declares that ‘this government’s biggest failure to date is our young people’.  With 58,000 youth not in work or education, ‘We are at crisis point. 27.6% of those aged 15-24 are out of work and out of luck. It’s even higher for Maori and Pacific youth’. And how has the Government performed on this issue? Garner says ‘there is a yawning gap between Key’s rhetoric and the reality’, and asks, ‘So what did Key do in the weekend to target the problem? Very little’. He suggests that ‘Key needs to be bold, he needs to take risks’.”

Source

In stating that Key had done “very little” to target the problem,  Garner was referring to the Prime Minister’s policy speech at National’s Conference on 13 August.  Indeed, thus far National’s track record at addressing unemployment has consisted of the following;

  • Building a cycleway. Anticipated new jobs: 4,000. Actual new jobs created: 215.  (Source)
  • Hiring an advisor for Finance Minister, Bill English, at $2,000 a day. (Source)
  • A new payment card for 16,17, and some 18 year old beneficiaries that could not be used for things like alcohol or cigarettes; (though it’s already illegal for 16 and 17 year olds to purchase these products)
  • … and… that’s it.

Source

It is worth noting the seriousness of youth unemployment in this country. According to the Department of Labour;

“Youth aged 15–19 years have an unemployment rate over three times that of the entire working-age population. Young workers are more vulnerable to downturns in labour market conditions due to their lower skill levels and lesser work experience. The latest official figures show that 17.2% of youth aged 15 to 19 and 8.4% of those aged 20 to 24 years were unemployed, which represents a deterioration of the trends found in the report. Maori and Pacific youth had significantly higher unemployment rates.”

Source

Ducan Garner seems in no mood to respond to John Key’s “smiles and waves” politics when he opens his piece with this caustic observation;

“58,000. This is the crucial number that should be ringing in John Key’s ears every night he bunks down in the refurbished Premier House.

58,000 young people between the ages of 15-24 are not in education, training or work. The majority of them are on a benefit.”

Garner adds,

“Sure the recession has been tough on young people worldwide. 81 million youths are now unemployed around the globe, it was 71 million before the recession. It is a ticking time bomb. In London, it’s already exploded.”

Source

And there we have it:
  1. Problem: growing, lingering unemployment.
  2. Potential disaster: social unrest, exploding into mass-violence.
  3. Solution – ?
To demonstrate how utterly vacuous National’s policy has been to date, let me juxtapose two media reports  outlining policy releases from both Labour and National.  Have a good look at these;

[click to expand]

Labour would cut dole, increase training

National to clamp down on youth beneficiaries

Which offers new jobs, and which offers tinkering with welfare?

At a time when New Zealand has 170,000 unemployed – of which 58,000 are aged 15-24; when we will be needing thousands of skilled tradespeople to re-build a broken city that has endured massive earthquake devastastion; the current government has done next-to-nothing during its three year tenure.

Except create 215 new jobs in building a cycleway; hire some very expensive advisors; and give tax cuts to some very rich people.

In doing so, we do not have the skilled tradespeople required to re-build Christchurch.  Because we are currently losing around 20 skilled tradespeople a day to overseas destinations such as Australia.  At the same time, people are losing their jobs in Christchurch and unemployment is rising.

To show how badly this government has failed, nothing better illustrates that failure than this;

 

 

Only the most die-hard National/ACT supporter will believe this this situation is acceptable. (And they usually come up with all manner of excuses why it is acceptable.) But I suspect – or at least hope – that ordinary New Zealanders who look at this situation and will ask the inevitable hard questions;

  1. Why are we not offering training for unemployed?
  2. Why are we not planning  to put our people to work?
  3. Why are we hiring workers from overseas?
  4. How will this help unemployed New Zealanders to get back into the workforce?

On the 13 of August, at the National Party Conference,  Prime Minister John Key stated,that “the current system “is not working and needs to change“.

Unfortunately, he wasn’t talking about job creation or training for unemployed. He was talking about not letting 16 and 17 year olds buy booze and ciggies.

Goff says it is ”crazy”to have high youth unemployment alongside a growing skills shortage crisis“.

Which one resonates with you?

Postscript;

 

A bouquet  to Hutt Gas and Plumbing Systems Ltd ,  a Lower Hutt company that is one of the many thousands of small businesses in our communities, quietly ‘beavering’ away in the background,  that make  our economy work.

 

 

Hutt Gas & Plumbing featured on TV1’s evening news where Phil Goff released Labour’s youth skills and employment package.

Hutt Gas & Plumbing train several apprentices, giving young people an opportunity to learn a trade; earn a wage; and contribute to their local community.  These folk are the real pillars of our society. Not the big, flash corporations and financial institutions that shuffle bits of paper around, and make their profits on speculation.

These are the small companies that deserve our support and encouragement. They are the ones that some of our children will rely on for jobs’ training to get into a trade.

Kudos to Labour for planning to increase apprenticeships. This is the hard policy planning that will create jobs and give our kids opportunities.

And a bloody big brickbat for Minister for Tertiary Education Steven Joyce, for  saying that Labour’s proposal was just National policy dressed up,

They’re basically doing what the government is already doing, they just want to throw more money at it.”

It’s rather revealing that National thinks that creating jobs for our young people is  “throwing money”.

Because buying 34 new BMW limousines, for National ministers, is not “throwing money”?