web analytics

A real recession policy

Written By: - Date published: 1:27 pm, August 6th, 2009 - 13 comments
Categories: unemployment, workers' rights - Tags:

Darien Fenton’s minimum redundancy bill has been drawn from the ballot and is likely to go before the house in the next two weeks.

In my opinion implementing a minimum redundancy is one of the most significant ways we can reduce the effects of the recession on working Kiwis because it offers a buffer for people when they lose their jobs so they can continue to pay their mortgages for a while, set themselves up in business or get some financial space to retrain.

I expect that National will talk a lot about how business can’t afford this and it will cost more jobs but it’s worth remembering that 85% of union collective agreements have a redundancy clause.

It’s also worth remembering that business got a 3% tax cut from Labour last year.

And that our long-standing politicians are also rewarded extremely well when they are made redundant by voters and that senior managers also tend do very well when they move on.

If it’s good enough for them why should ordinary workers be left high and dry when their job disappears? Especially when those jobs are disappearing at a frightening rate.

Somehow I doubt the political arm of business will agree.

13 comments on “A real recession policy ”

  1. BLiP 1

    No way will business accept this or any improvement in worker conditions. As John Key said this government is about reducing conditions, not improving them.

    Under Labour, business got a real fright when the tables were turned and it was them suffering the shortage, far better, in their venal minds, if there’s a ready pool of humble souls from which to pick and choose.

    Thanks National Inc. I’m lovin’ it.

  2. sausage fingers 2

    “A real recession policy”. Quite true.

    Way to make sure that anyone who was remotely contemplating employing anyone will decide not to.

    Are you desperate to prolong the recession for your political ends?

  3. Rex Widerstrom 3

    Fenton could have blogged a summary of what’s in the Bill (information is what political blogs are meant to be for Darien, not self-congratulatory back-patting).

    Someone want to fill me in? How much money are we talking about? The Herald’s website seems to be all about Field, Keisha Castle-Hughes (could I care less? I think not), and of course Bill’s house.

    Clearly no room for a story on something that would have a major impact on the lives of ordinary working NZers.

    • IrishBill 3.1

      Rex, it’s a four plus two deal capped at 26 weeks with four weeks notice. That’s less than the union standard of six plus two but it would see someone with five years service get twelve weeks of income to get by on. Better than restart for sure.

      I’m getting a bit bored with Bill’s house too. But that’s the media we’ve got.

      • Rex Widerstrom 3.1.1

        Thanks IB. Paid for straight out of business profits? Some form of insurance scheme? Part government assistance? I suppose I should ask over sat Red Alert really, but you guys do analysis, they do propaganda).

  4. vto 4

    12 weeks isnt much but better than nothing. Problem isn’t business absorbing costs such as this, problem is the time it takes to get the cost passed on. As rude as it sounds.

  5. IrishBill 5

    Rex, straight out of business profits. No reason it can’t be put aside in an investment fund over time though.

    vto, three months is a decent period of not having to be on the dole and being able to meet your costs as you normally would while looking for a new job. There’s no reason that the government couldn’t defray the cost to business for redundancies where the worker had more than, say, five years accrued via a tax credit and then phase that out as the cost of the policy fed into the economy over time. It would be a typical tripartite arrangement much like kiwisaver, I’ve not looked into it far enough to approximate the costs but I can’t see how they could be that great once the savings from not paying restart and benefits payments were accounted for.

    • Rex Widerstrom 5.1

      Thanks again IB. I can see how that might cripple small businesses already on the brink if someone doesn’t offer an insurance scheme whereby the premiums are less than one would actually have to set aside to cover the full cost of potential redundancies.

      OTOH it’s an excellent and much-needed idea in principle. No one should be chucked out of a job with nothing more than a “thanks for playing, here’s two weeks wages”, which has happened to me on several occasions.

      I hope it gets through to Select Committee stage so the options can be canvassed, rather than dumped at the first reading on ideological grounds.

    • vto 5.2

      Good to see that the effect on business is being taken into account, as it can’t be ignored. Many costs and impositions get dumped on businesses. It is an easy dumping ground for politicians – example, recently local councils increased levies on developers. They (being the local body politicians) presented the increased costs as being something which the developers would pay, implying that there will be no effect on the public because the developers would be made to pay it out of their profit. Of course the public love hearing that – ‘make them fat cats pay ha ha ha’. That was deceptive in the extreme and if the councils were subject to the Fair TRading Act they would have been instantly in breach.

      No doubt this sort of behaviour will continue, despite its harm and dishonesty.

      • IrishBill 5.2.1

        vto, that’s not in the bill but it’s an option that could be put in the mix if it gets to select committee. Sadly I doubt it will get past the first reading.

      • Armchair Critic 5.2.2

        vto – of course developers don’t pay the levies out of profits, they pass them on to the purchasers of their developments. From that perspective the whole ‘make them fat cats pay’ line is rubbish.
        I know it is a bit of a stretch from a minimum redundancy bill to developers levies, but I have to ask, do you think ratepayers should subsidise all, some or none of the extra costs that are generated by development?

  6. vto 6

    Tell you a funny thing mr critic.

    The line spun by the local body politicians here in this corner of NZ was that development is great and the whole community benefits through having a more vibrant city, increased population, greater job opportunities and investment, etc. The mayor and others went on and on about this, as they do in most centres. You know – get more people coming to the area. Grow, populate, advance, more cosmopolitan, etc etc. So the entire theme, promoted by the pollies themselves, was that development and increased population is something which benefits the entire existing community. Which it does.

    So then some costs come along. Uh oh, dont want to upset the constituency. Politicians then start parroting that those who benefit should pay the costs they impose. Now of course they CHANGE their definition of who it is that benefits – all of a sudden it is only developers who benefit. Not the wider community, the existing community, the future community, not anymore – all their previous statements turn out to be hollow deceptions (lies). So they present a falsehood, claim it is only the developers who benefit, and lump 100% of those costs onto them.

    Bloody deceitful Councillors.

    Getting to your exact question – those who benefit should pay. It is partly the entire existing community as outlined above and partly the developer and partly the new resident and partly the residents that will follow. So the costs should be spread across those groups – which includes existing and future ratepayers and the developers.

    • Armchair Critic 6.1

      Thanks vto. I’ve always favoured splitting the costs between the purchasers of the development and the existing ratepayers. No one seems to have worked out how to split the costs (I think it varies from place to place) and do it in a transparent manner and politically acceptable way.

Recent Comments

Recent Posts

  • New visitor attraction to boost tourism
    The opening of the first major new tourism attraction since the global outbreak of COVID-19 closed borders to international travellers will provide a welcome boost to visitor numbers in our largest city, says Tourism Minister Stuart Nash. Mr Nash has this afternoon taken part in the official opening ceremony of ...
    BeehiveBy beehive.govt.nz
    6 hours ago
  • Govt moves on drug checking to keep young New Zealanders safer this summer
    The Government will pass time limited legislation to give legal certainty to drug checking services, so they can carry out their work to keep New Zealanders safer this summer at festivals without fear of prosecution, Health Minister Andrew Little says. Next year the Government will develop and consult on regulations ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Public Service Commissioner reappointed
    Minister for the Public Service Chris Hipkins announced today that Public Service Commissioner Peter Hughes CNZM has been reappointed for three years. The Public Service Commissioner is appointed by the Governor-General on the recommendation of the Prime Minister. “Mr Hughes’ reappointment reflects the need for strong leadership and continuity to ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Pōwhiri marks the start of a critical year for APEC
    New Zealand kicked off its APEC host year today, with a pōwhiri taking place on Wellington’s waterfront with local iwi Te Atiawa, and a number of Government ministers welcoming representatives from the other 20 APEC economies. “APEC is a hugely important international event, and New Zealand is hosting amidst the ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Speech at APEC 21 Opening Pōwhiri
    9am, Tuesday 1 DecemberTe Whare Waka o Pōneke, Wellington Central He Mihi Kei aku rangatira no ngātapito e whā o te ao huri noa, tātou e huihui mai nei. Tēnā rā kōutou katoa. He tangiapakura ki ngā tini aituā kei waenganui i a tātou, ka tangi tonu te ngākau ki ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Government extends business debt relief to October 2021
    To assist with the ongoing economic recovery from COVID-19, rules allowing affected businesses to put their debt on hold have been extended by 10 months. “New Zealand’s economy is recovering better than we expected, but the impacts of the pandemic are far-reaching and some businesses need continued support to keep ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Bill introduced to support workers with 10 days sick leave
    The Government is delivering on a key commitment by introducing a Bill to Parliament to expand sick leave entitlements from five days to ten days a year, Workplace Relations and Safety Minister Michael Wood announced today. “COVID-19 has shown how important it is to stay at home when people are ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Progress on pay equity for DHB staff
    Today’s initial agreement between DHBs and the PSA on pay equity for clerical and administration staff is an important step toward better, fairer pay for this crucial and largely female workforce, Health Minister Andrew Little says. If ratified, the agreement between the Public Service Association and the country’s 20 District ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Iconic Milford Track officially reopens
    One of New Zealand’s premier hikes and a cornerstone of the Te Anau community, the Milford Track has officially reopened, “From today, hikers booked on the popular Great Walk will be able to complete the walk end-to-end for the first time since early February,” Minister of Conservation Kiri Allan says. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Support for farmers beefed up ahead of La Niña
    Further funding for feed support services and new animal welfare coordinators will help farmers who continue to feel the effects of an extended drought, says Rural Communities Minister Damien O’Connor. “In March this year, I classified the drought in the North Island, parts of the South Island and the Chathams ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Next steps for Christchurch Hospital campus redevelopment
    Canterbury DHB will be better placed to respond to future demand for services and continue to deliver high quality care, with the next stage of the campus redevelopment programme confirmed, Health Minister Andrew Little says. The Government has approved $154 million in funding for the construction of a third tower ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Five Power Defence Arrangements Defence Ministers’ Joint Statement
    The Defence Ministers from Australia, Malaysia, New Zealand, Singapore and United Kingdom reaffirmed their nations’ continued commitment to the Five Power Defence Arrangements (FPDA), and commended the achievements over the past 49 years as the FPDA moves towards its 50th Anniversary in 2021.  The Ministers recognised the FPDA’s significant role ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Jobs for Nature funding protects health of Hawke’s Bay waterways
    A joint Government and Hawke’s Bay Regional Council project will invest $4.2 million to protect local waterways, enhance biodiversity and employ local people, Environment Minister David Parker announced today.   Over two years, the Hāpara Takatū Jobs for Nature project will fence 195km of private land to exclude stock from vulnerable ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Year border exception for seasonal workers in the horticulture and wine industries
    2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week while in isolation From January ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government increases support for New Zealanders to work in seasonal jobs
    The Government is offering further financial support for unemployed New Zealanders to take on seasonal work. These new incentives include: Up to $200 per week for accommodation costs $1000 incentive payment for workers who complete jobs of six weeks or longer increasing wet weather payments when people can’t work to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government receives Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mos...
    Minister for Internal Affairs Jan Tinetti has today received the Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mosques, and will table it in Parliament on Tuesday December 8. “I know this will have been a challenging process for whānau, survivors and witnesses of the terrorist attack ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand Government to declare a climate emergency
    The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today.                                       “We are in the midst of a climate crisis that will impact on nearly every ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Call for urgent action on Pacific conservation
    A declaration on the urgency of the global biodiversity crisis and the need for immediate, transformative action in the Pacific was agreed at a pan-Pacific conference today. The 10th Pacific Islands Conference on Nature Conservation and Protected Areas is taking place this week across the Pacific.  Minister of Conservation Kiritapu ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech from the throne
    E aku hoa i te ara o te whai, Kia kotahi tā tātou takahi i te kō, ko tōku whiwhi kei tō koutou tautoko mai. Ko tāku ki a koutou, hei whakapiki manawa mōku. He horomata rangatira te mahi, e rite ai te whiwhinga a te ringatuku, me te ringakape ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Keynote address to Chartered Accountants Australia and New Zealand conference
    Speech to the CAANZ conference - November 19, 2020 Thank you, Greg, (Greg Haddon, MC) for the welcome. I’d like to acknowledge John Cuthbertson from CAANZ, the Commissioner of Inland Revenue Naomi Ferguson, former fellow MP and former Minister of Revenue, Peter Dunne, other guest speakers and CAANZ members. I ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Expert independent advisory group appointed to strengthen the future of Māori broadcasting
    A panel of seven experts are adding their support to help shape the future of Māori broadcasting, Minister for Māori Development Willie Jackson has announced today. “Today I will meet with some of the most experienced Māori broadcasters, commentators and practitioners in the field. They have practical insights on the ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government to review housing settings
    New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus is on improving access to the housing market for first home buyers and ensuring house price growth ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Crown accounts reflect Govt’s careful economic management
    The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance before gains and losses, or OBEGAL, was in deficit. However that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Community launch marks next step in addressing racism in education
    The launch of Te Hurihanganui in Porirua today is another important milestone in the work needed to address racism in the education system and improve outcomes for Māori learners and their whānau, Associate Education Minister Kelvin Davis says. Budget 2019 included $42 million over three years to put Te Hurihanganui ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government to consider recommendations on DNA use in criminal investigations
    The Minister of Justice has received the Law Commission’s recommending changes to the law governing the way DNA is used in criminal investigations. The report, called The Use of DNA in Criminal Investigations – Te Whahamahi I te Ira Tangata I ngā Mātai Taihara, recommends new legislation to address how ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Wakatū Nelson regional hui on trade
    First, I want to express my thanks to Te Taumata for this hui and for all the fantastic work you are doing for Māori in the trade space. In the short time that you’ve been operating you’ve already contributed an enormous amount to the conversation, and developed impressive networks.  I ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Primary Industries Summit
    Thank you for the opportunity to speak to you today about the significant contribution the food and fibres sector makes to New Zealand and how this Government is supporting that effort. I’d like to start by acknowledging our co-Chairs, Terry Copeland and Mavis Mullins, my colleague, Agriculture Minister Damien O’Connor, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Fast track referrals will speed up recovery and boost jobs and home building
    The Government is taking action to increase jobs, speed up the economic recovery and build houses by putting three more projects through its fast track approval process. “It’s great to see that the fast-track consenting process is working. Today we have referred a mix of potential projects that, if approved, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Papakāinga provides critically needed homes in Hastings
    A papakāinga opened today by the Minister for Māori Development the Hon Willie Jackson will provide whānau with much needed affordable rental homes in Hastings. The four home papakāinga in Waiōhiki is the first project to be completed under the ‘Hastings Place Based’ initiative. This initiative is a Government, Hastings ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand ready to host APEC virtually
    Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While this isn’t an in-person meeting, it will be one ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Revival of Māori Horticulturists
    The rapid revival of Māori horticulture was unmistakeable at this year’s Ahuwhenua Trophy Awards, with 2020 marking the first time this iconic Māori farming event was dedicated to horticulture enterprises. Congratulating finalists at the Awards, Māori Development Minister Willie Jackson said growing large-scale māra kai is part of Māori DNA. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Emergency benefit to help temporary visa holders
    From 1 December, people on temporary work, student or visitor visas who can’t return home and or support themselves may get an Emergency Benefit from the Ministry of Social Development, Social Development and Employment Minister Carmel Sepuloni announced today. Previously, temporary visa holders in hardship because of COVID-19 have had ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • School sustainability projects to help boost regional economies
    Forty one schools from the Far North to Southland will receive funding for projects that will reduce schools’ emissions and save them money, Education Minister Chris Hipkins announced today. This is the second round of the Sustainability Contestable Fund, and work will begin immediately. The first round announced in April ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Farmer-led projects to improve water health in Canterbury and Otago
    More than $6 million will be spent on helping farmers improve the health of rivers, wetlands, and habitat biodiversity in Canterbury and Otago, as well as improving long-term land management practices, says Agriculture Minister Damien O’Connor. Four farmer-led catchment group Jobs for Nature projects have between allocated between $176,000 and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tupu Aotearoa continues expansion to Pacific communities in Nelson, Marlborough, Tasman & Northl...
    Pacific communities in Nelson, Marlborough, Tasman and Northland will benefit from the expansion of the Tupu Aotearoa programme announced today by the Minister for Pacific Peoples, Aupito William Sio. The programme provides sustainable employment and education pathways and will be delivered in partnership with three providers in Northland and two ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New primary school and classrooms for 1,200 students in South Island
    Education Minister Chris Hipkins unveiled major school building projects across the South Island during a visit to Waimea College in Nelson today. It’s part of the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “Investments like this gives the construction industry certainty ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Minister of Māori Development pays tribute to Rudy Taylor
      Today the Minister of Māori Development, alongside other Government Ministers and MP’s said their final farewells to Nga Puhi Leader Rudy Taylor.  “Rudy dedicated his life to the betterment of Māori, and his strong approach was always from the ground up, grassroots, sincere and unfaltering”  “Over the past few ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prime Minister to attend APEC Leaders’ Summit
    Prime Minister Jacinda Ardern will attend the annual APEC Economic Leaders’ Meeting and associated events virtually today and tomorrow. “In a world where we cannot travel due to COVID-19, continuing close collaboration with our regional partners is key to accelerating New Zealand’s economic recovery,” Jacinda Ardern said. “There is wide ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Speech to Infrastructure NZ Symposium
    Tena Koutou, Tena Koutou and thank you for inviting me to speak to you today. This is a critical time for New Zealand as we respond to the damage wreaked by the global COVID-19 pandemic. It is vital that investment in our economic recovery is well thought through, and makes ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pike River 10 Year Anniversary Commemorative Service
    Tēnei te mihi ki a tātau katoa e huihui nei i tēnei rā Ki a koutou ngā whānau o te hunga kua riro i kōnei – he mihi aroha ki a koutou Ki te hapori whānui – tēnā koutou Ki ngā tāngata whenua – tēnā koutou Ki ngā mate, e ...
    BeehiveBy beehive.govt.nz
    2 weeks ago