Holding back our productivity

Written By: - Date published: 7:17 am, April 14th, 2016 - 72 comments
Categories: capitalism, class war, economy, wages - Tags: , , , , , ,

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.”

New Zealand has had low productivity for decades, and it shows no sign of catching up with other OECD countries. Why? It isn’t from a lack of hard work. As reported in 2013:

Kiwis work longer, produce less, says Commission

On average, New Zealanders work 15 per cent longer than the Organisation for Economic Cooperation and Development as a whole and produce about 20 per cent less output per hour worked, according to the commission’s report ‘Productivity by the numbers: The New Zealand Experience’….

An interesting piece (by Fiona Rotherham) on Stuff yesterday throws some light on the matter:

New Zealand productivity still lags

A new report from the Organisation for Economic Co-operation and Development says New Zealand still has a large productivity gap (27 per cent) to other OECD countries because of a lack of investment in “knowledge-based capital” and international connections.

It says New Zealand’s policy settings should generate gross domestic product per capita 20 per cent above the OECD average, but we are actually more than 20 per cent below average. This affects New Zealanders’ income and wellbeing and comes in spite of the economic upswing.

Distance is one important factor:

More than half of New Zealand’s productivity gap relative to the OECD average is explained by weaknesses in our international connections. … While not much can be done about its distance to markets, New Zealand’s two-way trade flows could be altered to reduce its impact.

But there are others:

…the OECD work finds the gap reflects weakness in knowledge-based capital which has become increasingly important in driving productivity gains in the digital age. Knowledge-based capital ranges from things like product design, inter-firm networks, research and development, and organisational know-how. While New Zealand ranks well in software investment and trademarks, the amount of R&D undertaken by the private sector is among the lowest in the OECD.

Our private sector is not pulling its weight on R&D. Furthermore:

Cross-country surveys also show the quality of management is below average in New Zealand, which lowers productivity gains from new technology.

So, our below average management is not investing enough in R&D and not dealing with the challenges of our distances to markets. This is not the first indication that the country is held back by poor management. Much as they like indulge in their own self importance and tell the rest of us how things should be done, our “business leaders” are doing an objectively poor job.

Perhaps instead of insulting Kiwi workers as “pretty damned hopeless”, Bill English should be taking aim at these captains of industry.



And of course, what productivity gains there are never seem to filter through to workers:

wage and productivity gap

72 comments on “Holding back our productivity ”

  1. TepidSupport 1

    I think we need to take some notes from China and India on developing a “knowledge” economy and opening ourselves up to new and innovative ways.
    BUT. We also have to realise we will have much greater gap between wages and productivity here as we *care* for our workers and don’t pay slave wages like those economies either.

  2. TopHat 2

    I must admit when I returned to New Zealand, my work ethic crumbled .
    I would bounce out of bed in the morning and think, ‘hmm $20 an hour…” and go back to bed.

    I didn’t train and work overseas ( no student loans.) to return and not have my efforts rewarded at all.
    People here do not appreciate their employees, seeing them as mere tools to exploit.
    So in view of all that I am not surprised our production down the sink as with our work ethic.
    A proper days work = a proper days pay.

    • vto 2.1

      Yep.

      Free market in action.

      Employers can’t deal with the free market.

      Farmers can’t deal with the free market.

      pussies

      • Internationalrescue 2.1.1

        Employers deal successfully with the free market every day. We have a labour market with too many jobs and not enough matching workers, so employers have an incentive to recruit and pay well. A free market generated incentive.

        • Stuart Munro 2.1.1.1

          Massive milk powder exports? So 1960s.

        • vto 2.1.1.2

          No, they don’t deal successfully with the free market every day….

          evidence one – farmers recruiting from low-paying third world countries.

          evidence two – Queenstown accommodation operators doing the same.

        • UncookedSelachimorpha 2.1.1.3

          ” employers have an incentive to recruit and pay well”

          Or alternatively, lobby the government to manipulate wages downward by importing cheap labour and passing legislation to reduce worker’s rights.

        • One Anonymous Bloke 2.1.1.4

          The free market also generates incentives for R&D, staff training, and high levels of education. Other countries recognise this, and act accordingly. Here, the National Party sells legislation and pretends that Jenny Shipley earned her directorships on merit.

        • Colonial Viper 2.1.1.5

          Employers deal successfully with the free market every day.

          And plenty of employers will tell you how fucked up it is, every day.

          By the way, you’re dreaming if you think your fairy tales of the ‘benefits of the free market’ hold any water today. Maybe in the 1980s when the theory was all flashed up to sound good to the masses.

          Too many of us now know your lies through hard experience.

        • saveNZ 2.1.1.6

          @Internationalrescue –

          “We have a labour market with too many jobs and not enough matching workers, so employers have an incentive to recruit and pay well. ”

          In spite of 67,000 new migrants into NZ this year alone, the skilful NZ manager still find under National’s rule that they can’t fill all those new ‘jobs’.

          what a joker you are…

          • Thom Pietersen 2.1.1.6.1

            Most migrants are not skilled labour – they are property investors – for the former the pay does not match the living costs anymore. And too many baby boomer employees are holding down salaries on the back of their property windfall fucking the rest of us up the arse… They’ll die in comfort after a few world cruises and leave the debt for the next generation – absolute selfish c*nts!

        • adam 2.1.1.7

          ” I sometimes wonder if austerity might be less of an ideology and more of a pathology.” Frankie Boyle

          I think poor Internationalrescue has gone a long way to prove that today.

    • RedLogix 2.2

      @TopHat

      As a kiwi working in Aus at the moment I can only 100% endorse what you are saying. In the few short years here I’ve achieved more than I was ever allowed to do in 30 years working in NZ.

      Way more.

  3. One Anonymous Bloke 3

    Too many “business” “success” stories are in fact an indication of Cabinet Club membership: the National Party manufactures incompetence.

    • Draco T Bastard 3.1

      Too many “business” “success” stories are a result of policy settings that dis-empowers everyone that doesn’t have money and connections

  4. Whispering Kate 4

    Why did we do away with apprenticeships where an employer took on a young person, educated them on the job for 5 or so years – where has that employer responsibility gone? Why do these young kids now have to pay their own way through Tech, end up with debt and be expected to arrive on the job up and running? Why is it common now for employers to contract out their staff and expect them to do their own tax, pay their own health insurance etc, buy their own utes and their tools, what do employers do these days?

    Also with degrees at university, why is there a degree now for everything – once upon a time an employer took on someone with a good general degree, mentored them in the job and trained them up, now they expect people to be fully trained by university lecturers in the many specialised degrees offered so they are primed and ready for work. Even Bob Jones has said he always employed people with a good Humanities Degree as they were taught to think outside the square and had independent thought, he said he wanted to train them the way he wanted them so they would be flexible to learn from him. Employers seem to want it every which way.

    No wonder some young people feel non responsive to work, indebted with loans and paid low wages its stands to reason they aren’t too enthusiastic to be up at the crack of dawn, working 60+ hours a week for coolie rates. Because our employment ethics are poor its no wonder we have become a nation of small businesses, no-one it seems wants to be working for a boss these days, I can see why. Shame on Bill English, he has been at the tax payers trough all his working life, he wouldn’t understand at all about being on poor wages. He should be sacked.

    • Draco T Bastard 4.1

      Why did we do away with apprenticeships where an employer took on a young person, educated them on the job for 5 or so years – where has that employer responsibility gone?

      Why do these young kids now have to pay their own way through Tech, end up with debt and be expected to arrive on the job up and running?

      Employers decided that it was costing them too much and that the employee should now pay for it thus we got tertiary school fees and student debt.

      Why is it common now for employers to contract out their staff and expect them to do their own tax, pay their own health insurance etc, buy their own utes and their tools, what do employers do these days?

      Because shifting all of the expenses on to the employees is an effective way to cut costs and thus boost profits. Also, contracting is a great way to decrease wages as people compete against each other from a precarious position meaning that they will take whatever income they can get.

      • Descendant Of Sssmith 4.1.1

        Not forgetting of course that in the golden period of apprenticeships most of them were done by the state – not the private sector.

        Hospitals had their own electricians and carpenters and took on apprentices, places like the railways and Ministry of Works produced electricians, and boiler makers and electricians, carpenters, builders and so on and so on.

        Many of those people would go on to have successful private sector businesses – all courtesy of the training they got in the public service.

        The free market was never going to deliver the future volumes.

        Bit like housing – it’s not just housing New Zealand houses that have vanished into the free market it’s the housing the workers had – single mens quarters on the railways, Ministry of Works, Education, railway housing – all vanished in the cause of privatization and replaced with shite housing for high rentals and ever increasing house prices.

        The private sector only likes market forces in their favour – market forces that say we don’t want to work for you cause you treat us as disposable and pay us poor money apparently don’t exist.

  5. ianmac 5

    Kate, “once upon a time an employer took on someone with a good general degree, …”
    The thrust from Joyce is to abandon University courses for Arts degrees and if he had his way only job specific courses would be allowed. Jones would employ a degree on Philosophy over any other.

  6. Whispering Kate 6

    Ianmac, I always understood that university was for furthering your education, not a training place for work. A person with a good general degree can work in many fields. I have a relative who has an MA Hons in Art History and now holds a very senior position in an American Bank and is doing very nicely too I might add. Its not a lifestyle I would like for myself but it justifies what I am saying, people who have extended university educations are adaptable for many careers. This Government is lazy, it only has time for its cronies and to hell with everybody else. They punish people just because they can, sadistic lot if you ask me. Our poor wage economy is wrecking this country, people deserve to be able to take home a living wage at the very least.

    • ianmac 6.1

      I know a young woman who did MA specialising in Greek History. She now manages a horse stud farm in Britain.
      My son has a BA in History and is Logistics Manager in a large wine making firm. So yes. I think Joyce is starking mad. And dangerous for the health of our society. I do suspect that a person who has a single-minded degree in say Engineering, may not have the flexibility of thought to tackle problems out of the norm. Depends on the individual I guess.

      • AB 6.1.1

        ” I think Joyce is starking mad.”
        If he really means what he says then indeed he is – also a vulgar, ignorant, philistine, embarrassment.
        However I think his opposition to arts degrees is that he sees people who learn about their history and culture often become lefties, and it doesn’t suit him.

        • Draco T Bastard 6.1.1.1

          However I think his opposition to arts degrees is that he sees people who learn about their history and culture often become lefties, and it doesn’t suit him.

          People who learn history will generally oppose the machinations of those who still try to exploit their fellow people.

    • saveNZ 6.2

      +1 Whispering Kate – within the Information Technology community most of the most creative and successful people actually have other degrees than information technology.

      Degrees and knowledge need to be tailored to what the individual is best at, not what they speculate will bring them the most money in future years (that they often do not enjoy).

      The most important thing NZ could be doing is encouraging much higher university and KEEPING or REEMPLOYING those people back in NZ (on real wages).

      As for Singapore they have their own problems with their ‘test’ culture, one of which is that although they score so well in maths, their graduates are not confident enough to start a new business and so have much less patents that other countries compared to their results!

      It seems the old Kiwi way of creative learning that created some of our great NZer’s and NZ as one of the best education systems in the world. (but now biting the dust under a barrage of testing of infants and primary school kids under National’s rule that has completely been discredited all around the world….)

      In my view, NZ has the talent, but not the government will or skill to actually create NZ into a knowledge economy. I mean they feel they can’t even train a chef or milker or fruit picker in NZ so how in hell are they going to create and retain someone with skills to transform our economy?

  7. Colonial Viper 7

    New Zealand has had this same problem for 30 years: too little capex, too much reliance on cheap labour for “competitiveness” (yet another neoliberal code word), a government which believes that watery market mechanisms are going to change things.

    Tax breaks on R&D anyone? Useless. We’ve had a discussion on what Singapore has done to get where they are. There, the Singapore Government has poured billions of dollars into advanced biotech/biological sciences centres. That’s where they see the future.

    Here is Helen Clark on “Catching the Knowledge Wave” – back in 2001:

    SIAC report: setting an innovation framework

    The council, chaired by a leading figure in management and industry, Rick Christie, was appointed last year by Helen Clark to provide advice on how to best position New Zealand as a knowledge-driven economy and society…

    Helen Clark said the report by SIAC was an important element in the government’s commitment to economic transformation aimed at fulfilling a vision of a more innovative, skilled, creative and enterprising nation.

    The government is now seeking feedback from across all sectors on the seven challenges identified in the report, called An Innovation Framework for New Zealand, as work continues towards the production of an action plan.

    The seven challenges outlined in the report are:

    * Reward ‘can do’, risk taking and success
    * Educate for a knowledge economy
    * Become a magnet nation for talent
    * Generate wealth from ideas and knowledge
    * Excel globally
    * Network, collaborate and cluster
    * Take an investment-driven approach to government

    Helen Clark said it was critical to engage with a wide range of New Zealanders over the report so that a shared vision emerged on how to secure the country’s future success.

    “The report sets the goal of building within the next twelve months a national movement for revitalising our economy with the support of business, educators, local government and other community leaders.

    “As the report notes, innovation provides New Zealand with the best opportunity to lift its game. It is about making ourselves more visible in a crowded world.

    “But as we work through the process of fleshing out the framework that is being presented today, the government will continue the work it has begun on transforming the economy. There is simply no time to waste.

    All sounds good doesn’t it? In retrospect, this was another case of more reports and more consultation and more flashy “frameworks” while countries like Singapore just got on with the job.

    My guess is Te Papa got more funding from that Government than new high tech initiatives.

  8. Dean Reynolods 8

    Every 5 years the NZ Institute of Management takes part in an international survey of management expertise around the world. The last time the survey was taken, the skill of NZ managers ranked lower than that of India. For 30 years we’ve been fed this neo liberal BS that the ‘free market’ produces rugged, efficient employers. It doesn’t – it produces lazy bosses with short term, greed driven goals.

    • Draco T Bastard 8.1

      +1

    • BM 8.2

      Problem with most NZ managers is that they haven’t being trained in the people side of management, they tend to get selected as managers because of their technical skill, but that’s only halve the equation.

      That wasn’t so much of an issue 25 years ago because you could rely on your staff to get on with it and get the job done without having to be checked up on every 5 minutes.

      These days that lack of people skills and productivity knowledge is really creating an issue as younger employees tend to be easily distracted, prone to lose focus and not do their job .

      This requires managers to be constantly checking on them and trying to motivate them to do their job without the employee going into sulk mode.

      • saveNZ 8.2.1

        Dream on there BM, with this Natz bullshit.
        Funny how under the Natz where Kiwis were formally thought of as hard workers and used to be well liked in the UK and pretty much anywhere, now in 8 years of Natz rule we are now described by English as “pretty hopeless as workers’.

        I guess the 67,000 migrant workers being imported in per year under National are filling up the slack by lazy locals… sarc.

      • AB 8.2.2

        Don’t agree – my experience is that the best way to de-motivate and drive people away is to be constantly checking on them. High performance workplaces come from giving trust and autonomy.
        Also in my experience HR people are absolutely the worst at this – their training in the “people side” seems to make them more dangerous than anyone else.

        • Wensleydale 8.2.2.1

          Largely because HR exists to protect the company from their workers, not as some delusional souls believe, as a shoulder to cry on when the stress of the daily grind becomes too much. They are the gatekeepers and the hatchet wielders; experts in legalese, and navigating the dangerous ground between what they can get away with relatively unscathed, and what will likely result in a PR disaster or a workplace mutiny. The business ethics classes they took in university were generally surplus to requirements.

          • miravox 8.2.2.1.1

            “Largely because HR exists to protect the company from their worker”

            Yup. It’s in the name. If HR was there for humans, they wouldn’t be calling them resources.

        • Colonial Viper 8.2.2.2

          Hence the cartoon character Dogbert.

        • Draco T Bastard 8.2.2.3

          Dilbert

      • McFlock 8.2.3

        Yeah, well looking at the chart, in that 25year period productivity has increased by about half and wages by what – 10 or 20%?

        Not much stake in working so hard, is there…

      • Thom Pietersen 8.2.4

        BM… in my industry I have to disagree with you – managers do not get selected for their technical skills, they get selected because they are ‘show ponies’ that take credit for financial return, they might originally have a technical background in training but they use that for status to move them forward with gift of the gab and brown nosing. But I agree they have no ‘man’ agement skills with people.

        The thing is, it’s simple, we are judged purely on a bean counting basis, if you cannot report back in the purist format on this basis you’re screwed. No one trains anymore and no one learns therefore the technical problems are just pushed around until you can find someone to be the fall guy.

        The outcome of this, for any young person becomes demotivated quickly because the future is uninspiring crap.

        The young being distracted thing, it more to do with what’s the point? – NZ is a cheap skate, cost cutting, disillusioning shithole full of half arsed mediocre business – get into property and make your millions!

        We are aksuhally f*cked!

  9. Draco T Bastard 9

    It says New Zealand’s policy settings should generate gross domestic product per capita 20 per cent above the OECD average, but we are actually more than 20 per cent below average.

    If people think that the policy settings should be producing a result and they’re not then their belief in the policy settings are wrong. Physical reality trumps delusion every time.

    Our private sector is not pulling its weight on R&D.

    Neither is our government. No country has ever developed their economy without the government doing a hell of a lot of basic research. You know, the hard stuff that doesn’t make a profit but can then be applied to make new products that do.

    Then there’s the fact that NZ is a small country and we can’t afford for individuals to compete in manufacturing. What that means is that the government needs to build and own factories that our entrepreneurs can then use to produce the products that they design.

    Considering how well 3D printing is developing (Rocket Lab use 3D printing to produce rocket engines) then the government needs to be researching and developing manufacturies that use 3D printing. The effect of these will be to eliminate economies of scale as the factory will be able to produce everything and thus will be in use 24/7 (with time down for maintenance).

    They should also look to developing our own resources and processing them so that we’re not reliant upon importing raw resources.

  10. NZJester 10

    Lack of investment in proper maintenance of machinery could also be a big factor with the longer hours and lower productivity.
    I have worked in a place with workers standing around for anywhere from half hour to two hours while a machine is repaired. It happened 3 times to me. Not to mention lots of little 1 minute breaks every few hours while something jammed was removed to unblock the flow of the goods through the factory.
    An older worker told me how they used to have a much more regular maintenance schedule and a breakdown was very uncommon. Now that the machines are serviced less often and there are less maintenance staff there are a lot more breakdowns.
    Getting rid of some of the maintenance staff was obviously a false cost saving measure.
    I could go into this in more detail, but New Zealand being a small place if I was more specific the place I worked at might be identified.

    • saveNZ 10.1

      Hello there NZJester, pretty much everything you buy these days in made in China or the like for slave wages. And surprise surprise it’s shit and 50% of what you buy does not work, is already missing a part, or only lasts the 1 year of warranty.

      Not to mention that under neoliberalism, the company should not be expected to invest in their workforce as the mantra is the ‘individual’ is the sole beneficiary apparently. So they don’t bother training anyone anymore, they just import someone in, or keep the old people going. Young people apparently are not keen to work for minimum wages when it costs more for 1 hr car parking in Auckland than for 1 hour of work in some cases.

      And the cronyism and waste. Why worry, because friends of friends get the contracts to everything and are untouchable. Look at the super city IT, over 1 billion and not really anything being done about it, because National and the new Super city structure will just cream it off the ratepayers some more.

      Vector, water treatment and so forth. Water meters went from being $500 to $12,000, if something goes wrong with power you have to wait for Vector to turn up (through multiple companies clipping the ticket and adding to the time frames and complexity).

      The whole country of NZ is running down. Money is only coming into NZ through migration but the cost is, that NZer’s are losing control and becoming tenants in our own country and of our former businesses.

      If you think of a farm, and it is going bankrupt through mismanagement but the farmer just keeps selling off a little chunk each year to keep the bills paid, and borrowing a whole lot more to pay it’s bills. But eventually the farmer is left with a lot of debt and does not even own the farm. That is what the National party has been doing to NZ.

      • Draco T Bastard 10.1.1

        If you think of a farm, and it is going bankrupt through mismanagement but the farmer just keeps selling off a little chunk each year to keep the bills paid, and borrowing a whole lot more to pay it’s bills. But eventually the farmer is left with a lot of debt and does not even own the farm. That is what the National party has been doing to NZ.

        That started in the 1980s under the 4th Labour government. Hasn’t really stopped since although it decreased under the 5th Labour government.

        We’ve, essentially, stopped investing in ourselves and have started selling ourselves into slavery instead as we sell off industry, land and public assets and businesses.

    • Draco T Bastard 10.2

      Yep, seen that as well. As I was a middle manger at the place I complained about it to try and get it fixed. By the time I moved on nothing had happened.

      It’s not just maintenance either. Cost cutting is causing all sorts of problems across a range of areas within businesses. Using the wrong equipment or even no equipment, getting someone to make something up rather than just going down the road and buying a pre-made unit etc, etc.

      In NZ managers are cutting costs to the detriment of the business. And when they don’t get the expected increase in profits they cut costs even more making it even worse.

  11. Shifty 11

    So this is what my mum faces every day when she goes to work. Anecdotally, none of this is new, well, to us plebeians anyway. To see it formalised really makes for depressing reading. Why do we permit such stupidity? The 1% are totally uneconomical and I’m tired of the props from 1% wannabes. Its enough to stir me into action…but what action to take?

    • Stuart Munro 11.1

      Defenestration is one of the traditional responses to non-performing democratic leaders – unfortunately a factor that played a part in the design of the Beehive.

      But if we want to rebuild national productivity, co-ops are the way to go. No-one has monopoly power and there is an incentive to share knowledge and support development. No parasitic ‘elite’ class in a co-op, bet the Fonterra farmers wish they didn’t have a parasite group in theirs.

  12. The lost sheep 12

    I’m presuming all the experts commenting here are currently running brilliantly managed innovative research focused companies, that are achieving fantastic levels of productivity?

    Or is the Government preventing you?

    • McFlock 12.1

      actually, I’m working for a good organisation that has significantly boosted its productivity and nationwide impact over the last five years, as have all its employees.

      And yet I still don’t get quite enough to service a mortgage.

      The main reason I chose to stay this year was because it makes the country a better place. But financialy – nah.

      • RedLogix 12.1.1

        Which is wrong. In my last role in NZ I generated documented productivity gains in excess of $900k pa over a period of years. Even got written up in industry journals.

        Pay still sucked dirt. And I was one of the better off ones.

        • McFlock 12.1.1.1

          yep.

          I sure wasn’t bitching – I’m one of the better-off ones in my social group.

      • The lost sheep 12.1.2

        I know a lot of companies that have significantly sharpened their games over the last few years McFlock. IMO all this anecdotal bullshit above is, well, bullshit from people who wouldn’t know how to run a sausage sizzle, but are experts at moaning about how the Government should be doing it for them.

        I appreciate your comment about the level of remuneration in NZ, but am interested because I employ a few high end people who would certainly be earning far more if they had stayed in AUST / USA / UK / Sweden etc.
        Some of them tell me that they work here because the net costs v wages thing means they have a better quality of life here than if they were home, and some of them tell me that there are some aspects of quality of life here that they simply couldn’t buy at home.

        Which countries do you think you’d be better off in, all things considered?

        • McFlock 12.1.2.1

          Nowhere. Dunedin is home. If I lose all connection to my home, I’ll be ok most places on the planet. Transferable skills, good quals, little capital startup.

          But the issue isn’t whether or not I have any connection to the land and community around me.

          The issue is the fact that NZ workers are producing more and more, and not sharing in the profits they generate. That’s a fact compiled by statisticsNZ, not anecdotal at all.

        • Stuart Munro 12.1.2.2

          Korea is certainly better governed – Saudi isn’t but its economy is awash with money – everything is easy except the bureaucracy. China basically sucks – low pay, no environment. NZ would be okay but the government have been wrecking it for the last thirty years. England is poor and miserable, with scarcely a trace of former greatness.

          You hope that your government does its job and looks after our people – and then you see that asshole Bill has Chinese boners in Southland now SFF is sold. Same as the Russians who destroyed the fishing industry, there will be nothing left for kiwis unless we punish the traitors.

          • Colonial Viper 12.1.2.2.1

            “China basically sucks.”

            It’s all relative. They have far less extreme poverty than countries like India or the USA.

            • Stuart Munro 12.1.2.2.1.1

              I am of course considering the expat perspective. Rural poverty in parts of China remains pretty significant, and the deculturation China suffered during the 20th century was pretty severe – it makes you want to retire to a quiet corner like Hangzhou and raise violet pearls – but nowhere seems particularly quiet any more. I expect in 20-30 years China will be much better – Korea’s Han river was almost dead 20 years ago – now it’s a park. Bad cultural match for me – as America would be I expect: pushy and lacking substance.

              As an ELT teacher you need a healthy economy or what you need to earn to save anything is too great an imposition on your students’ families. If that matters to you.

              • Colonial Viper

                Although I don’t disagree with your specific comments, I have to state again that China, despite its huge population, has largely escaped the bottom 2 or 3 deciles of personal income, on a global basis.

                http://thestandard.org.nz/global-poverty-global-oligarchy/

                Of course on an expat basis or vis a vis NZ, they are still much worse off in general, excluding their oligarchic class.

    • Draco T Bastard 12.2

      It’s capitalism and the greed of the rich preventing people from improving productivity.

    • RedLogix 12.3

      Well as I said above, I’m working for a very innovative company that really is a disruptor in our industry. (Yeah that word is a bit hackey … but it’s true.)

      We are doing things … and I mean projects >$100m that no-one else in our industry can or has the balls to do. Is my world perfect? Of course not, but our senior management does value hard work and new ideas They’re always looking for better AND safer ways to do things. On a daily basis.

      Shame is I had to move to Aus to find it.

    • Descendant Of Sssmith 12.4

      I’ve got a decent sized list of innovative ideas for various employers that have gone through to implementation that have made many things better and increased productivity.

      I’ve got other things that become someone else’s idea a couple of years later – often the same person that poohed poohed it two years earlier.

      I also see what’s wrong with things which poor managers see as negativity and good managers use to manage risk.

      I’d say it’s been about 50/50 over the years.

      It’s pretty obvious over the years that there are some pretty skilled and knowledgeable people on this site.

      Making lots of money isn’t necessarily the motivation for many.

      Sometimes saving lost sheep is all we aim to do.

      • The lost sheep 12.4.1

        Making lots of money isn’t necessarily the motivation for many

        I agree. The real purpose is the creation of ‘wealth’ for the many.
        What ever the motivation, we need people who are intelligently working to better our collective situation.

        Personally, I think the (oops) responsibility (oops) for that lies far more with the people than it does with the Government.
        Either way, more power to you for your contribution Sssmith.

        • Colonial Viper 12.4.1.1

          “What ever the motivation, we need people who are intelligently working to better our collective situation.”

          That’s not what happens in an oligarchy.

          • The lost sheep 12.4.1.1.1

            Yup.
            But not sure how that is relevant?
            A society with Universal suffrage is not an oligarchy, like NZ if that is what you are implying, and so there is nothing stopping you getting out and creating enterprises that benefit the people.

            Be a far more significant contribution to the general good than spending all day whinging about the Labour Party on an obscure blog don’t you think?

            • Stuart Munro 12.4.1.1.1.1

              Ha. Read Michel’s Iron Law.

              https://en.wikipedia.org/wiki/Iron_law_of_oligarchy

              • The lost sheep

                You are quoting a 1911 theory by someone who went on to migrate to Italy and joined Benito Mussolini’s Fascist Party, as he believed this was the next legitimate step of modern societies

                That’s about where I’d picked your political sympathies lay Stuart.

                • Draco T Bastard

                  And RWNJs keep referencing back to an 18th century book but ignore the greater lessons of the author of that book.

                • Stuart Munro

                  Nevertheless there is always an oligarchy. In NZ it’s currently a set of tax-evading property speculators and dairy concerns.

                  As a RWNJ I must defer to your insider’s knowledge of fascism.

  13. Whispering Kate 13

    Another way for companies to cut costs is through the tool of job attrition, where a staff member leaves they are not replaced, their job is shared among remaining staff and so on. I know a company who has a third less staff now and, granted the economy hasn’t been helpful they nevertheless are left with stressed staff, job morale is low and everybody on a daily basis feels not very loyal to the company. Suspicious always. What sort of a job experience is that. And, writers on this site are correct middle/top tier managers are usually psychopathic and bullies or haven’t a clue how to interact with their staff. Bill English has been out of the “real job market” for 40 years if he ever was in it, what gives him the right to slag off NZ young men – he has a family of his own and probably sons, what a terrible thing to say.

    • Sacha 13.1

      Talked with someone in that boat this week – 30% more work, no increased pay, respect, anything. Leaving.

  14. Sacha 14

    The Herald’s Brian Gaynor assesses how and why NZ business leaders fail to perform long-term: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11195066

  15. hoom 15

    Bit late so probably nobody will read it but:
    The thing about Productivity as an economics term at the national level is that its not what most people (& especially the righties like to make us think) it is.

    Productivity = GDP/hours worked

    GDP = compensation of employees + gross operating surplus + gross mixed income + taxes less subsidies on production and imports

    So if you keep salaries & taxes low you are actively working against GDP growth -> Productivity stays flat.
    Increasing salaries & tax will increase GDP -> Productivity.
    Increasing hours worked without increasing salaries also works to keep Productivity flat.

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    Point of OrderBy Bob Edlin
    5 days ago
  • The case for cultural connectedness
    A recent report generated from a Growing Up in New Zealand (GUiNZ) survey of 1,224 rangatahi Māori aged 11-12 found: Cultural connectedness was associated with fewer depression symptoms, anxiety symptoms and better quality of life. That sounds cut and dry. But further into the report the following appears: Cultural connectedness is ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Useful context on public sector job cuts
    David Farrar writes –    The Herald reports: From the gory details of job-cuts news, you’d think the public service was being eviscerated.   While the media’s view of the cuts is incomplete, it’s also true that departments have been leaking the particulars faster than a Wellington ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Gordon Campbell On When Racism Comes Disguised As Anti-racism
    Remember the good old days, back when New Zealand had a PM who could think and speak calmly and intelligently in whole sentences without blustering? Even while Iran’s drones and missiles were still being launched, Helen Clark was live on TVNZ expertly summing up the latest crisis in the Middle ...
    5 days ago
  • Govt ignored economic analysis of smokefree reversal
    Costello did not pass on analysis of the benefits of the smokefree reforms to Cabinet, emphasising instead the extra tax revenues of repealing them. Photo: Hagen Hopkins, Getty Images TL;DR: The six news items that stood out to me at 7:26 am today are:The Lead: Casey Costello never passed on ...
    The KakaBy Bernard Hickey
    5 days ago
  • True Blue.
    True loveYou're the one I'm dreaming ofYour heart fits me like a gloveAnd I'm gonna be true blueBaby, I love youI’ve written about the job cuts in our news media last week. The impact on individuals, and the loss to Aotearoa of voices covering our news from different angles.That by ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Who is running New Zealand’s foreign policy?
    While commentators, including former Prime Minister Helen Clark, are noting a subtle shift in New Zealand’s foreign policy, which now places more emphasis on the United States, many have missed a key element of the shift. What National said before the election is not what the government is doing now. ...
    PolitikBy Richard Harman
    5 days ago

  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Antarctica New Zealand Board appointments
    Foreign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner.  The Minister has appointed Neville Harris as a new member of the Board. Mr ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Finance Minister travels to Washington DC
    Finance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom.  “I am looking forward to meeting with our Five Finance partners on how we can work ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pet bonds a win/win for renters and landlords
    The coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Long Tunnel for SH1 Wellington being considered
    State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand condemns Iranian strikes
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel.    “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says.    "We are deeply concerned that miscalculation on any side could ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Huge interest in Government’s infrastructure plans
    Hundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Health Minister thanks outgoing Health New Zealand Chair
    Health Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board.   “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti.  “I have asked her to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Roads of National Significance planning underway
    The NZ Transport Agency (NZTA) has signalled their proposed delivery approach for the Government’s 15 Roads of National Significance (RoNS), with the release of the State Highway Investment Proposal (SHIP) today, Transport Minister Simeon Brown says.  “Boosting economic growth and productivity is a key part of the Government’s plan to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Navigating an unstable global environment
    New Zealand is renewing its connections with a world facing urgent challenges by pursuing an active, energetic foreign policy, Foreign Minister Winston Peters says.   “Our country faces the most unstable global environment in decades,” Mr Peters says at the conclusion of two weeks of engagements in Egypt, Europe and the United States.    “We cannot afford to sit back in splendid ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • NZ welcomes Australian Governor-General
    Prime Minister Christopher Luxon has announced the Australian Governor-General, His Excellency General The Honourable David Hurley and his wife Her Excellency Mrs Linda Hurley, will make a State visit to New Zealand from Tuesday 16 April to Thursday 18 April. The visit reciprocates the State visit of former Governor-General Dame Patsy Reddy ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pseudoephedrine back on shelves for Winter
    Associate Health Minister David Seymour has announced that Medsafe has approved 11 cold and flu medicines containing pseudoephedrine. Pharmaceutical suppliers have indicated they may be able to supply the first products in June. “This is much earlier than the original expectation of medicines being available by 2025. The Government recognised ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • NZ and the US: an ever closer partnership
    New Zealand and the United States have recommitted to their strategic partnership in Washington DC today, pledging to work ever more closely together in support of shared values and interests, Foreign Minister Winston Peters says.    “The strategic environment that New Zealand and the United States face is considerably more ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Joint US and NZ declaration
    April 11, 2024 Joint Declaration by United States Secretary of State the Honorable Antony J. Blinken and New Zealand Minister of Foreign Affairs the Right Honourable Winston Peters We met today in Washington, D.C. to recommit to the historic partnership between our two countries and the principles that underpin it—rule ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • NZ and US to undertake further practical Pacific cooperation
    Foreign Minister Winston Peters has announced further New Zealand cooperation with the United States in the Pacific Islands region through $16.4 million in funding for initiatives in digital connectivity and oceans and fisheries research.   “New Zealand can achieve more in the Pacific if we work together more urgently and ...
    BeehiveBy beehive.govt.nz
    1 week ago

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