web analytics

2.1 Times More Likely to get a pay rise…

Written By: - Date published: 7:48 am, September 2nd, 2015 - 6 comments
Categories: business, capitalism, class war, cost of living, discrimination, Economy, farming, health and safety, jobs, minimum wage, Unions, wages, workers' rights - Tags:

If you still wonder WHY anyone would want to join a union, the fact that union members are 2.1 x more likely to get a pay rise might make you wade through the anti-union propaganda.

Some unions escape scorn, like the Police Union which is referred to as an Association (its legal name – just as one of the “Teachers Unions” is the Post Primary Teachers Association ). It’s probably an oversight though, not anything deliberate…

There are more to Unions than just getting pay rises, they also work on representation in company restructures, safety in the workplace and so on. Unions have tried to hold the Government’s feet to the fire over Health and Safety, by way of example.

Here is an extract from the the  CTU’s monthly economic bulletin by Bill Rosenberg which addresses inequality in pay;

 “Unions, pay and inequality

Summary

This looks at the latest data on collective employment agreements, showing again that people who are part of a collective do better in pay rises, and unionisation’s effect on inequality.

We often assume that because unions go some way to levelling the playing field for people who rely on wages and salaries, they help to reduce income inequality. In July, International Monetary Fund researchers published a study providing strong evidence that is right. It finds that deunionisation was associated with increasing income inequality in the 20 high income countries that it analysed including New Zealand.

They find that higher unionisation reduces inequality not only in low to middle incomes before tax, but also by reducing the share of the nation’s income that top incomes have acquired. Further, they find evidence that it reduces inequality in after tax incomes by influencing policies such as increased top tax rates and stronger social security systems. In other words unions are a powerful force for social progress.

They find that New Zealand is at an extreme in deunionisation increasing inequality – but also near the opposite extreme in the positive effect of the minimum wage in reducing inequality. Financial deregulation is also associated with rising inequality while technology plays a relatively modest role.

Comparing the new data on collective employment agreements (CEAs) to the Labour Cost Index (LCI) for all jobs shows that in the year to June 2015 the LCI rose 1.6 percent overall, the same as wages in CEAs, the private sector LCI rose 1.8 percent, considerably lower than the 2.3 percent rise for CEAs, central government LCI rose 1.1, just higher than CEAs (1.0 percent), and local government rose 2.1 percent, again considerably lower than the 3.0 percent for CEAs.

A job on a $15 wage in June 1993 (then around the average wage) would be paying $26.09 in June 2015 if it had risen at the CEA rate of increase, but only $23.70 if it had risen at the LCI rate, a 10.1 percent CEA premium. For the private sector, the premium is 15.9 percent. Jobs on CEAs are 2.1 times as likely to get a pay rise as those which are not.”

What will Labour do, I hear some shrill?   Where better than a Memorial Lecture for the Late Margaret Long to find out?

Little, flyer

 

Even dairy-farmers might want to rethink who they use to advocate for them

New Zealand dairy farmers bracing for the lowest payout in a decade probably won’t welcome the latest analysis of global trends in the industry – their counterparts in every other dairy-producing country are being paid more.

Read more: http://www.3news.co.nz/nznews/nz-dairy-farmers-paid-least-in-world-2015090114#ixzz3kWBDwwJH

 

 

6 comments on “2.1 Times More Likely to get a pay rise… ”

  1. esoteric pineapples 1

    One of the principal reasons for belonging to a union for me is that they are there as your representative when you have a problem with your employer (or more often they have a problem with you). Otherwise you are stuck with expensive lawyers fees or having no one to support you at all.

  2. les 2

    Good idea to change all unions to associations.The right has waged such an intensive campaign to demonise unions ,the term has negative connotations to many people.

  3. Peter 3

    … not to forget that The All Blacks and Black Caps have “unions” ….. they understand the importance of collective bargaining

    Not to believe in the role of unions is to believe that employers are benevolent, fair, and not in the game of divide and rule.

  4. Colonial Viper 4

    How about the ol’ Farmers Union. I mean, Federation.

    • Ben Clark 4.1

      And the Employer’s Union, sorry EMA… (provides similar employment procedure/ negotiation services to a union for small business owners – but from the other side…)

Recent Comments

Recent Posts

  • Celebrating the Entry Into Force of the Treaty on the Prohibition of Nuclear Weapons
    [Opening comments, welcome and thank you to Auckland University etc] It is a great pleasure to be here this afternoon to celebrate such an historic occasion - the entry into force of the Treaty on the Prohibition of Nuclear Weapons. This is a moment many feared would never come, but ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Supporting disabled people to stay connected
    The Government is providing $3 million in one-off seed funding to help disabled people around New Zealand stay connected and access support in their communities, Minister for Disability Issues, Carmel Sepuloni announced today. The funding will allow disability service providers to develop digital and community-based solutions over the next two ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Voluntary saliva testing offered to quarantine workers from Monday
    Border workers in quarantine facilities will be offered voluntary daily COVID-19 saliva tests in addition to their regular weekly testing, COVID-19 Response Minister Chris Hipkins said today. This additional option will be rolled out at the Jet Park Quarantine facility in Auckland starting on Monday 25 January, and then to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Next steps in firearms buy-back
    The next steps in the Government’s ambitious firearms reform programme to include a three-month buy-back have been announced by Police Minister Poto Williams today.  “The last buy-back and amnesty was unprecedented for New Zealand and was successful in collecting 60,297 firearms, modifying a further 5,630 firearms, and collecting 299,837 prohibited ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Jobs for Nature projects target iconic ecosystems
    Upscaling work already underway to restore two iconic ecosystems will deliver jobs and a lasting legacy, Conservation Minister Kiri Allan says.  “The Jobs for Nature programme provides $1.25 billion over four years to offer employment opportunities for people whose livelihoods have been impacted by the COVID-19 recession. “Two new projects ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Public Housing Plan announced
    The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister congratulates President Joe Biden on his inauguration
    Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    2 weeks ago