Labour pains National delivers

Yesterday’s announcements by Labour adds to the list of policies which increase or add new costs for businesses and make employing people more expensive.

That job-losing list includes: raising the minimum wage, Capital Gains Tax, more expensive ETS and imposing that on agriculture earlier, their 1970s industrial relations policies, bigger employer contributions to KiwiSaver and a charge on water.

Instead of policies to get the economy growing faster, they have policies which will require more borrowing which is what got us, and several other troubles  countries,  into recession.

Contrast that with National’s policies which promote export led growth and will make it easier to employ people.

Among these is the employment relations policy announced by Prime Minister John Key this morning which includes a starting-out wage for young, first-time workers:

“A flexible and fair labour market is critical for building a stronger and more competitive economy, and creating more real jobs,” says Mr Key.

“National’s employment relations policy brings better balance to labour market rules. It encourages growth, creates jobs and protects workers’ rights.

“The starting-out wage will give some of our youngest and most inexperienced workers a much-needed foot in the door. It will provide them with valuable work experience that may not have otherwise been available to them.”

The starting-out wage will be set at 80 per cent of the adult minimum wage and three groups of people will be eligible:

  • 16- and 17-year-olds in their
    first six months of work with a new employer.
  • 18- and 19-year-olds entering
    the workforce after more than six months on a designated benefit.
  • 16- to 19-year-old workers
    training in a recognised industry course involving at least 40 credits a

Mr Key also announced an extension to flexible working arrangements, improvements to collective bargaining and a review of constructive dismissal.

“National wants to see more people benefiting from flexible working arrangements. We’ll extend the right to request such arrangements to all employees, and allow employers to reach agreements without having to go through a formal process – saving time and money,” says Mr Key.

“We’ll also make changes to reduce bureaucracy and costs associated with collective bargaining, including removing the requirement to conclude a collective agreement.”

Mr Key says National will also take a close look at how allegations of constructive dismissal can be better managed.

“Altogether, these initiatives are part of National’s plan to give businesses the confidence they need to invest, grow and create higher-paying jobs.

“This comes on top of the good progress we’ve made in our first term of government, including establishing the successful 90-day trial for new employees, raising the minimum wage, improving the Holidays Act, reforming the personal grievance system and keeping the Hobbit
movies inNew Zealand.”

National’s employment relations policy is here.

Labour’s policy increase the cost and risks of employing people, National’s make it easier.

The difference is clear – Labour pains, National delivers.

5 Responses to Labour pains National delivers

  1. gravedodger says:

    Pity they didn’t go with Sir Roger’s bill and modify it if necessary two years ago. It all looked a bit nose off face with sharp utensil to me.
    How many youth have found they can get by without a job, did the continuation of a ban on youth-rates actually produce.
    Some start jobs are just not worth $13.50 an hour while an employer trains and motivates a first time worker. With 20% inadequate in basic communication and math skills how many of them are competing for the entry jobs with little chance of passing go let alone collecting $200.

  2. Mike Johnson says:

    Instead of policies to get the economy growing faster, they have policies which will require more borrowing which is what got us, and several other troubles into recession.

    Not exactly sure what that mangled sentence means, but the factual position is that Cullen repaid virtually all the public debt through the major surpluses he ran (ignoring National’s constant screams to spend the surpluses on tax cuts for the wealthy) and built up a huge fund to help to pay for your future state pension.

    The recession was caused by the nice Mr Key’s merchant banking friends, particularly those in London and New York. For god’s sake, the company he merchant banked for collapsed with so many others.

    The net negative public debt National inherited from Cullen is what has enabled National to borrow so much without affecting our credit rating (the downgrades by S&P and the useless Fitch are because of private sector debt, not government debt).

  3. homepaddock says:

    It was a mangled sentence and was supposed to say countries not troubles.

    Much of the growth and surpluses under Labour which allowed the repayment of debt was a result of the fattening of the public sector and consumption fuelled by borrowing.

    Sustainable growth requires more savings, investment and exports.

  4. Mike Johnson says:

    Much of the growth and surpluses under Labour which allowed the repayment of debt was a result of the fattening of the public sector and consumption fuelled by borrowing</I

    It wasn't the Labour government doing the borrowing, Ele. Cullen was repaying government debt through his budget surpluses, and building up the pension fund.

    There was certainly a boom in private sector debt. We're very lucky house prices have not collapsed as they have in some other countries where private sector debt boomed.

    Your government is borrowing hundreds of millions of dollars a week — though that is because of the present cyclical downturn and will eventually reverse.

  5. homepaddock says:

    It was the private borrowing I meant. Consumption fuelled by that increased the GST take which, with other tax increases, enabled some government debt to be repaid.

    The government is still borrowing too much but it does have a plan to return to surplus.

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