Maritime Union says "savings and debt reduction" impossible for struggling workers

Maritime Union media release FOR IMMEDIATE RELEASE Wednesday 15 July 2009

The Maritime Union has criticized comments by Reserve Bank Governor Dr Alan Bollard about the savings levels of New Zealanders, and has called for major action to reduce the impact of the recession on working people.

Maritime Union of New Zealand General Secretary Trevor Hanson says the comments have "the ring of unreality" about them.

He says that while savings may be possible for the well off, most people were having trouble paying their weekly bills, and debt was a fact of life when people's income level could not meet basic living expenses.

When this happened, society was on the verge of major problems, and New Zealand was now entering "uncharted waters of social dislocation."

"The trouble is that politicians, high level bureaucrats and corporate managers all have high incomes that continue to swell regardless of economic tough times, while the average citizen is having to get by on less and less."

Mr Hanson says many New Zealanders are out of work, are having their hours of work slashed, and are facing zero pay increases or even pay cuts while the cost of living continued to rise.

He says workers don't choose unemployment - it chooses them. It was morally unfair to make one section of society pay for the results of the recession when the vast majority of unemployed people were victims of circumstances totally outside their control.

Mr Hanson says the continual stream of violence and crime that was occurring was the result of a stressed society and community breakdown where inequality and excessive pressures on working people were resulting in a negative spiral.

"Many New Zealand workers are cash strapped and in survival mode living from hand to mouth."

He says Mr Bollard must be well aware of the redundancies, liquidations, and thousands of workers working part time and full time on and just above the minimum wage of $12.50 per hour.

"A single income family with one minimum wage earner on 40 hours takes home after tax $409.39. Basic groceries for a family of three cost $150 a week, power in winter a minimum of $50 dollars per week, and rent and mortgage of $300 dollars per week, plus all the extras of health, schooling, fuel and insurance. Where does the saving come in to this budget?"

Mr Hanson says this situation is the norm for many New Zealand workers.

"Obviously this is a result of the global recession, but to somehow suggest that workers have room to move in the current situation is unrealistic at best."

Mr Hanson says that changes to Kiwisaver by the Government have made it harder for the less well off workers to build up retirement savings which meant that the scheme was helping the middle class not the people who need it most.

He says the only solution that would work for society is that if the tax cuts were reversed for the wealthy and highly profitable companies, especially those who were sending their profits overseas, and the resources used to ease the effects of recession.

"Mr Bollard should direct his comments to Government whose jobs strategy is not working. There must be the immediate introduction of job creation schemes, public investment and ownership of enterprises, and the purchase of locally produced goods and services by the Government and its departments."

ENDS

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