Solving low wage economy crisis the bosses created means not going backwards

By
Mike Treen
-
14
795

Prior to Covid 19, the New Zealand Labour Market was massively dependent on people working here on temporary visas.

The total labour force was 2.7 million people employed and 100,000 unemployed, making a total labour force of 2.8 million.
Of that total 300,000 were on temporary work visas of one form or another. That’s 11% of the workforce – one in every 10 jobs. Other countries that are favoured destinations for workers are Australia which has a temporary visa rate of  7%, Canada at 3% and the USA at 2%.
In some industries, like hospitality or agriculture, temporary visa holders made up 30% of the workforce or more.
Since 2008, temporary work visas increased six-fold from 40,000 a year to 250,000 pre-Covid. During the same period, new permanent residency numbers stayed roughly the same at about 40,000 a year.
New temporary visa holders were being lied to about their chance of transitioning to residency and became trapped on a treadmill once here.
So it was important that the people here would be able to access residency as easily as possible once Covid happened. That is why Unite Union launched the “Pathways to Residency” campaign that has been at least partially successful with around 200,000 people accessing residency.
The system of “permanent” temporary residency was designed to provide labour that was cheap and easily exploitable once here. The desire for residency was the carrot that could be used to force workers to put up with all sorts of abuse.
This system has since collapsed and should never be resurrected. Going back to that system is all that the National Party and Act have to offer in their policies.
But the Labour Party policies reman full of contradictions because they appear to want to maintain the elitist system for accessing permanent residency. So doctors can access residency immediately, but nurses and teachers who we also desperately need must wait two years. Meanwhile, carpenters or agricultural laborers who we also desperately need can only access residency if they are paid twice the market rate for these jobs, which will not happen of course.
The government has also introduced requirements that make it harder for those applying for less well-paid jobs from bringing partners with full work rights if their partner doesn’t also have the points for a job offer in their own right. This seems particularly inhumane,
The government appears to be trying to use the desperation of some employers to access migrants to force industries reliant on cheap labour to train and employ resident New Zealanders in the first instance as well. One good side of this approach has been a major increase in apprenticeships and other skills training. That is to be applauded.
But if we actually need carpenters and labourers why not allow them to come on a living wage with a pathway to residency and the right to change jobs? Then the systems of exploitation we have had operating for the last two decades would not be able to be recreated. and workers who were here could join the fight for a better life.

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14 COMMENTS

  1. If unions really care about NZ and NZ workers, they do not seem to be doing anything about the amount of illegal scams in NZ, that are being empowered by the ease of gaining NZ residency – many of which create victims in NZ and their community.

    It’s easier to come to NZ and not work or study but get residency into NZ with other ways.

    Homosexual Muslim granted refugee status in New Zealand after fears home country will harm him
    https://www.nzherald.co.nz/nz/homosexual-muslim-granted-refugee-status-in-new-zealand-after-fears-home-country-will-harm-him/GBTC65672J63WMI5BFDZCNGYIQ/

    Immigration Minister Kris Faafoi sued by Auckland University professor separated from his husband in China for a year
    https://www.newshub.co.nz/home/politics/2021/07/immigration-minister-kris-faafoi-sued-by-auckland-university-professor-separated-from-his-husband-in-china-for-a-year.html

    Auckland mall terrorist forged medical documents, boasted about duping immigration officials
    https://www.nzherald.co.nz/nz/auckland-mall-terrorist-forged-medical-documents-boasted-about-duping-immigration-officials/P4TXIN7YOI2OENGEKTWRCV2AD4/

    People are paying to come to NZ, then working illegally or below minimum standards and it is at epidemic proportions – that is on top of people who can access NZ residency by claiming refugee or residency status here by being gay or depressed or protected person.

    Illegally working overstayer dies on the job – ACC payment made to widow in China
    https://thedailyblog.co.nz/2022/08/30/solving-low-wage-economy-crisis-the-bosses-created-means-not-going-backwards/

    Bakery owner to pay back $33,800 illegally deducted from worker’s wages
    https://www.stuff.co.nz/business/112128450/bakery-owner-to-pay-back-33800-illegally-deducted-from-workers-wages

    Concern NZ Bus hired migrant workers without fixing conditions – union
    https://www.msn.com/en-nz/money/news/concern-nz-bus-hired-migrant-workers-without-fixing-conditions-union/ar-AAK9Hjm

    NZ Police fined $7000 and banned from hiring migrant workers for six months
    https://www.stuff.co.nz/business/119873753/nz-police-fined-7000-and-banned-from-hiring-migrant-workers-for-six-months

    22 restaurants, 120 staff – and now a $40,000 fine
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12014023

    Reporoa holiday park owner hits back over record $680k exploitation fine
    https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12294528

    Nearly all Chorus broadband subcontractors breaching labour laws, MBIE says
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12138990

    Burger King banned from hiring migrant workers, placed on Employment NZ’s stand-down list for year
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12115610

    Rotorua kebab shop Just Kebabs fined $73,000 for not paying hard-working employee the minimum wage
    https://www.stuff.co.nz/business/87045117/rotorua-kebab-shop-fined-for-not-paying-minimum-wage

    Indian restaurant bosses fined for exploitation
    https://www.rnz.co.nz/news/national/287183/indian-restaurant-bosses-fined-for-exploitation

    Auckland grocer fined $12,000 for attempted exploitation
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11841871

    Indian businesses ‘sell’ jobs for visas to students
    https://www.rnz.co.nz/news/national/336687/indian-businesses-sell-jobs-for-visas-to-students

    Auckland building boss charged with fraud after investigation into illegal labour
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12005146

    Migrant worker describes ‘modern day slavery’ scam
    https://www.radionz.co.nz/news/national/339373/migrant-worker-describes-modern-day-slavery-scam

    Kiwifruit body wants more RSE workers
    https://www.rnz.co.nz/international/pacific-news/356985/kiwifruit-body-wants-more-rse-workers

    Sikh temple to pay $100k for breaching employment laws
    https://www.stuff.co.nz/business/117040153/sikh-temple-to-pay-100k-for-breaching-employment-laws

    Sushi restaurant owner to pay $30k for exploiting workers
    https://www.radionz.co.nz/news/national/321156/sushi-restaurant-owner-to-pay-$30k-for-exploiting-workers

    Jailed trafficker committed ‘crime against human dignity’
    https://www.radionz.co.nz/news/national/320465/jailed-trafficker-committed-'crime-against-human-dignity‘

    https://www.stuff.co.nz/business/117551892/death-of-a-migrant-under-the-table-workers-building-aucklands-multimillion-dollar-homes

    https://www.radionz.co.nz/news/national/365583/punjabi-singer-gets-home-detention-for-drivers-licences-bribes

    ‘I just want my money’: Immigrant fighting for unpaid wages
    https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12032894

    Queen St money remitter discharged after laundering Polish and Russian crime syndicate’s cash
    https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12260326

    Auckland finance director sentenced for laundering dirty multi-national drug money
    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12116319

    Professionals are leaving and all these exploiter jobs do not fix NZ’s skills shortages they are just commodity jobs that their employers want to keep wages low or below minimum wages.

    NZ does not learn, and just opened up more scams while still migrant nurses and doctors can’t get into NZ easily as immigration is too busy granting the above exploiter, minimum wage jobs for people, most of who will compete with and extend NZ’s poverty.

  2. we need more burger flippers, retail workers, and cowboy building workers…cuz?… fucked if I know…
    cheap is the only factor involved.

    • i can only speak of my experience in construction, but here goes. most of the Koreans are really good, bit slow, but methodical. good workers, nice people. 80% of the Filipino and Chinese builders aren’t worth a rats turd. you have to physically stand over the Filipinos to make sure anything gets done, and the Chinese have a real “who gives a fuck” attitude. Indian sparkies are a mixed bag, the ones who are actually electricians are good, but unfortunately, too many come from an electrical engineering back ground, and are absolutely hopeless at the practical stuff. and are danger to themselves and everyone else who uses electrical appliances.

      so how do these guys get employment? you can blame the construction companies QSs and the board of directors. in the relentless pursuit of profit, the construction firms, keep low balling their quotes, buying cheaper (and shitter quality) product, and get cheaper labour to maximise profit.

      so yes cheap is a factor, but profit margin is the larger contributing factor. its greed, pure and simple.

  3. We, the people all want the same thing – a better life. But the ‘systems of exploitation’ aka the powers that be stand in our way. Once upon a time the system favored us, perhaps as much, may be even more so, than it favored the moneyed class. Not so anymore. The system needs fixing, a realignment towards serving the people as much as it serves the moneyed class.

    The problem is simple and its solution just as obvious.

  4. ” But the Labour Party policies reman full of contradictions because they appear to want to maintain the elitist system for accessing permanent residency ”

    The NZLP is a contradiction because they don’t represent any member of the low wage economy.

    This is what is being fought in the U.K

    Enough is Enough (EIE) is a new force in the class war. Its supporters include a number of socialist MPs, such as Zarah Sultana and Liverpool’s Iain Byrne. The Tribune, Acorn and the Communication Worker’s Union (CWU) are also backers. EIE has five demands:

    1. A real pay rise
    2. Slash energy bills
    3. End food poverty
    4. Decent homes for all
    5. Tax the rich

    Its time we started to fight back in A NZ

  5. ” But the Labour Party policies reman full of contradictions because they appear to want to maintain the elitist system for accessing permanent residency ”

    The NZLP is a contradiction because they don’t represent any member of the low wage economy.

    This is what is being fought in the U.K

    Enough is Enough (EIE) is a new force in the class war. Its supporters include a number of socialist MPs, such as Zarah Sultana and Liverpool’s Iain Byrne. The Tribune, Acorn and the Communication Worker’s Union (CWU) are also backers. EIE has five demands:

    1. A real pay rise
    2. Slash energy bills
    3. End food poverty
    4. Decent homes for all
    5. Tax the rich

    Its time we started to fight back in A NZ

    • Without doubt the Labour Government are a contradiction.
      Say things,promise things then do the opposite or nothing.

  6. Doctors from overseas getting easier entry to permanent residency than nurses. It is an efficiency decision, they have done their training elsewhere, or done it here and paid for it with overseas monies, so building our export earnings from the university factory approach.

  7. With the low productivity that NZ has higher wages are a problem.
    Increasing productivity by lowering wages is obviously not an answer.
    Improving the value of our produce by technology is an answer but not in itself the complete solution.
    Technology has to be encouraged before industry will commit to it.
    New high value industry is part of the answer but identifying what that is, is a challenge.

Comments are closed.