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Just reading the news from Radionz and I realise that something every day is just going to be overlooked when we need to know much more covering everything.
This on supply chains and that NZ can miss out on supplies. Maybe now’s time to make our own products to basic levels. Like toilet paper for instance. I wrote something about the Essity lockout at Kawerau But did I know all the facts of what’s going on?
Speaking to the Bay of Plenty Times this week, Phillips said the union was seeking pay increases in line with inflation and the rising cost of living. The consumer price index (CPI) June quarter increase was up 7.3 per cent on the year before.
While the company had offered an additional one-off payment in the first year of the three-year contract, he said pay rises in the other two years did not match expected inflation.
He said the union’s position was based on analyst predictions of a 15 per cent total rise over three years.
NZHerald explained it better” Essity’s wage offer was a 3 per cent increase in each year of a three-year agreement and a one-off cash payment, making the first-year payment equivalent to 8.3 per cent.
https://www.nzherald.co.nz/bay-of-plenty-times/news/kawerau-145-workers-at-toilet-paper-manufacturing-mill-locked-out-for-two-weeks-without-pay/O5AHEGRETBL5O5VDNHDX4OO4C4/
This from stuff
Essity locked out 145 Kawerau mill workers without pay on August 9 after they refused to accept a 3% pay rise plus a cash incentive of $1500 per year over three years….
Further on in the article – Essity’s pay offer was for an increase of 14.7% over three years, comprising a 3% increase every year plus an additional cash payment this year, general manager of the Kawerau mill Peter Hockley said earlier.
https://www.stuff.co.nz/business/129694184/purex-manufacturer-essity-blocks-locked-out-employees-from-accessing-retirement-savings
I think I originally read that it was just a 3% increase. Even if it is every three years that’s still 9% so not sure how it gets to over 14%. There is the cash payment perhaps that noosts it to 14+% What worries me is that the union rep is quoting economic indicators, but doesn’t seem to realise that asking for a rise to an expected rate of inflation will drive up the CPI, that it is a circular thing.
No way should unions be asking for pay rises in advance of inflation rises – that’s what drives inflation. Unions need to show discipline, be fair and expect fairness; note NZ workers lack of bargaining power.
This may turn out to be a bit random. Igot interrupted so hopes it is informative