CTU Media Release

17 March 2010

No Need to get Hatchet out on Productivity

It is no surprise that the Business Round Table and Business NZ are using disappointing productivity statistics to argue for even more attacks on existing employment law. But it was the ‘low road’ policies implemented in the 1980s and 90s that drove down wages, lowered levels of investment in skills and capital, and opened up a huge gap on all these fronts with Australia including a 30%  difference in productivity levels.

Peter Conway, CTU Secretary, says that the CTU supports a Productivity Commission provided it can include a focus on workplace productivity. It should not simply be an ACT Party tool for deregulation. The CTU will wait for further details on the role and functions of this Commission before finalising a position.

The latest statistics for the year to March 2009 include a period when there were large scale redundancies. Often this can initially show a lift in productivity. But we also saw many employers making an effort to hold on to workers, reduce hours of work for a temporary period, rather than send workers down the road.

Peter Conway said that unions continue to work with Government and employers on a range of initiatives to lift productivity. This co-operative approach is producing positive results. The scale of these initiatives needs to grow – rather than head down a negative track of deregulation and dismantling employment protections.

ENDS

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