Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Unions must be realistic on wages

Canterbury Manufacturers’ Association.
Media Release.
21 July 2006

In response to a report by Statistics New Zealand on work stoppages, the Canterbury Manufacturers’ Association says that New Zealand Unions must be realistic in their claim for higher wages and understand that inflation and globalisation affects companies as does the individual.

The CMA does not oppose wage and salary increases for employees, but the Association says that these increases should be measured against a company’s performance and financial situation as not to undermine their viability in New Zealand. Inflation increases the cost of living for individuals and those same pressures also reduce the competitiveness of New Zealand companies, adding to a cost base not shared by overseas competitors.

Chief Executive John Walley says that while there are some New Zealand companies who have reported profit increases, many in the manufacturing sector are still feeling the effects of the high Kiwi dollar, the inflow of imports from low cost countries, local inflation which along with oil and the international cost of materials are driving substantial cost increases. Global competition limits the ability to pass on costs to customers. The result is margin pressure and too much of that and the activity will cease.

“Work stoppages add to these costs, productivity falls and customers are unhappy, who wins in the end? Our competitors win. As if they did not enough comparative advantage to begin with, we go and hand them yet more”, says Mr. Walley.

“Stoppages, excess settlement demands by Unions will simply accelerate the loss of manufacturing activity in New Zealand. Is that good for Union members?”

“The recognition we are all in the same boat would be a start. We win or loose together because global competition is fierce and real unrealistic local demands have no place in this landscape.”

“In real terms low wages can only be fixed on a sustainable basis by higher productivity; ultimately all other wages increases are a transient illusion.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news