Welcoming the show of support on the day of the Australian National Day of Community Protest (Tues. 15 Nov 2005) against Fed Govt new IR laws, ACTU President Sharan Burrow said:
"New Zealand workers know full well what it means to have a deregulated labour market. They have experienced lower wages and reduced job security compared to Australian workers ever since a Conservative NZ Government pushed through radical IR reforms in the 1990s.
On average, NZ workers now earn 30% less than Australian workers thanks to labour market deregulation. No wonder Australia is such an attractive place for many Kiwis to come to for work.
In a letter to Australian businesses that operate in New Zealand, the NZ Council of Trade Unions requests they reconsider the Howard Government's proposals and look at the long term impact of deregulation, which has harmed the NZ economy. The letter says:
In New Zealand during the 1990s, the experience of the Employment Contracts Act was that over a period of years there was a damaging effect on wages and conditions. This partly explains why wages are low in New Zealand today.
But in addition, it is now clear that the Employment Contracts Act did not help the economy either. Recent Treasury papers have noted that in the 1990s "with labour relatively cheaper in relation to capital than in Australia, it appears that New Zealand firms have opted for a lower level of capital intensity". Also that between 1995 and 2002, 70% of the difference in the growth of labour productivity between New Zealand and Australia is explained by a lower growth rate in capital intensity.
The Employment Contracts Act did not deliver strong industries, attractive wages and conditions that could ensure sustainable labour supply, adequate investment in skills and technology, or higher productivity.
So we are asking Australian-owned firms operating in New Zealand to look beyond the simple belief that all labour market deregulation must be a good thing and consider the long term impact, not just on Australian workers and their families, but also the overall economy. We are also warning now that unions in New Zealand will not accept a return to the Employment Contracts Act prescription.
We would ask that you raise this issue with your head office in Australia.
Other protests in support of Australian workers will also occur tomorrow at Australian Embassies and High Commissions in London, Seoul, and Brussels.
Media contacts for overseas events are: Auckland, Wellington NZ - Carol Beaumont, President of NZ Council of Trade Unions (NZCFTU) ph +64 272 757 374; Seoul, Korea -- Contact: Kim, Tae-hyun (Executive Director, Korean Unions) Mobile: +82 2 19 294 5903; Brussels, Belgium Contact: Tim Noonan (ICFTU) Mobile: + 32 47 56 70 833; London, UK -Owen Tudor, UK Trade Union Congress c/- Ben Hurley: T: 020 7467 1248, M: 07881 622416.
Statements of support for the ACTU campaign have also been received from unions in Ireland; Sweden; Switzerland; Portugal; India; Malaysia; Singapore; France; Norway; Romania; France; India; Russia; Romania."