9 August 2004
Wages rose 0.6% this last quarter and 2.3% over the last year. The rises were lower than
inflation, which rose 0.8% in the quarter and 2.4% for the year.
Twenty overseas trained doctors, who have been granted NZ residency or citizenship, are either on
the dole or working odd-jobs, having been refused entry to a bridging programme that could allow them
to practice in NZ. The Ministry of Health says the doctors are not eligible for the programme because
they either missed the October 2001 deadline to apply or didn't meet English language standards.
An Auckland bakery owner is fined $2,000 for employing an illegal alien. Chikhoun Liuu is the
first employer to be fined under immigration rules that allows fines of up to $50,000 for knowingly
employing a person not permitted to work. The worker was deported.
The US economy added just 32,000 jobs in July, a fraction of the 228,000 jobs that economists
had predicted. US unemployment drops from 5.6% to 5.5% as more people withdraw from the workforce.
Germany's unions lose a battle to protect the country's 35 hr wk when automaker
Daimler-Chrysler signs a deal that makes its employees work 40hr/wk for no increase in pay.
10 August 2004
The NZ unemployment rate drops to 4%. The number of people employed passes the 2 million mark.
A US study finds that people who stay in jobs with low mental demands for a large portion of their
lives are more likely to develop Alzheimer's Disease. Researcher Kathleen Smyth says that people who
have jobs that aren't stimulating should find healthy ways to keep their minds active outside of work.
11 August 2004
A young Chinese with a tourism diploma has been looking for a job since March and says she
cannot get a job because NZ firms aren't prepared to give Chinese people a go. Crystal Xu says she has
been offered work in the NZ Chinese community but employers there offer no employment contract, pay
less than minimum wages with no penal or holiday pay or they prefer to pay under the table.
Germany's jobless rate rises to 10.5%.
12 August 2004
Eighty-six contract forestry workers lose their jobs after Kaingaroa Timberland decides to reduce
its harvest. Whakatane District councillor Jacob Te Kurapa: "We don't need this. The communities
of Murupara, Te Whaiti and Minginui are already stuck in the grip of a downturn and this is the worst
thing that could have happened."
Labour and skills shortages in the fishing industry are a reflection of industry pay rates and training,
and should not be addressed by bringing in foreign workers, according to the NZ Maritime Union.
National president Phil Adams: "If the companies bringing in overseas workers genuinely cannot find local
workers, they should come clean and open the books to show the wages and conditions they are
offering overseas workers. Unless NZ rejects using workers as pawns, a second-level employment market
will be created where casualised and underemployed NZ'ers are played off against imported
short-term contract workers."
Skills shortages could be largely remedied by better use of over 45-year-olds, according to
recruitment company Executive Taskforce Group. Director Kevin Chappell says over 45's are a hugely
under-utilised resource.
Some public servants may be nervous as 23 programmes run by the Department of Labour, the
Education Review Office and the Ministries of Health, Culture & Heritage and Education go under
review. Minister of Race Relations Trevor Mallard says the aim of the review is to assure the public and
ministers that policies were based on need, not race. It will be conducted by departments with the
assistance of Treasury analysts and a special review team set up within the State Services Commission.
The Community Employment Group, the agency that sparked the review, will not be included in it as
it is already undergoing an internal review, and many schemes have already been scrapped.
13 August 2004
The aviation industry is headed towards a crisis because of a shortage of pilots and engineers,
according to the Aviation Industry Association. President John Funnell says an aging workforce, growth in
airlines and competition from other industries are creating skills shortages. The association is meeting to
find ways of averting a crisis that could hamper industry growth.
Sixty jobs are lost as Wanganui hide-processing plant Hollander Waitotara closes down.
NZ manufacturing continues to expand last month, but at a slower rate than it did in June.
14 August 2004
ACT Party MP Muriel Newman hosts a Welfare Symposium which featured a number of local
and international guest speakers, including a video link with US Secretary of Human Services
Tommy Thompson who drove the Wisconsin welfare reforms. Newman's summary of the key points made
by the guest speakers can be found here.
The Australian Senate approves the "free-trade" deal with the US.
16 August 2004
The NZ government promises to crack down on the black market (under the table) economy
that evades taxations. It promises an initial amnesty that includes discounts and time to pay, but says that
the Inland Revenue Department will bring closer scrutiny on target industries and audits to pick up
tax dodgers.
19 August 2004
The Charities Bill is likely to be significantly rewritten after several days of select committee
hearings indicated little if any support for the bill.
20 August 2004
300 jobs will be lost over the next three years as Wellington area manufacturer Interlock closes
its Miramar site. In June, the company said it planned to cut 80 jobs, but it now plans to shift not only
its entire manufacturing operation but administration as well.
Minister of Social Development and Employment Steve Maharey says the government is
proud that more New Zealanders than at any time in history are now in paid work. Since the government
came to office, 211,000 new jobs have been created. Maharey: "The challenge we face now is quite
different to the one which we inherited in 1999. There are still a significant number of New Zealanders
looking for work and there are significant labour shortages emerging in some industries and regions.
These unemployment numbers confirm continued strong economic performance and the wisdom of the
government's investment in industry training, modern apprenticeships and better information about
job trends. "Maharey says that later this month the government will be launching a new project to
promote to employers the skills of potential workers who have traditionally found it more difficult to find
work, such as sole parents, immigrants and people with disabilities.
The skills shortage is solvable, according to the Auckland Chamber of Commerce. Chief
executive Michael Barnett advocates a four-pronged approach that includes:
The skilled New Zealanders who helped build the Sydney Olympic facilities would
undoubtedly come home to work — if they were paid enough, according to the NZ Council of Trade Unions.
President Ross Wilson says the current skills and labour shortage is a result of the low-wage policies
and laissez-faire approach to skills training of the 1990s. Wage rates are just not keeping up. The
latest labour cost index shows that wages increased by only 2.3% this past year, which is under the rate
of inflation. Wilson: "This was at a time of persistent labour shortages and high demand for skilled
labour. Yet high demand for housing has meant a 16% increase in house prices."
We should think hard before we consider bringing in workers from overseas to cover
labour shortages, according to barrister Catriona MacLennan, who works as a duty solicitor in South
Auckland. With unemployment at relatively low levels, MacLennan says this is the perfect time to make
a concerted, nationwide effort to get all the unemployed and underemployed New Zealanders into
work. Of her Monday morning clients, MacLennan says that most simply need a chance. MacLennan:
"They do not want to be criminals; to be unable to support their families; and do not want to be on the
fringes of the community. They need jobs and role models to teach them about routine, turning up for work
and responsibility. They might come from homes where unemployment is the norm and has spread
through more than one generation. They have no expectation of being permanently in work and do not
understand the basics of obtaining and keeping a job. Of course, some of the people appearing in court
are basically unemployable. But probably not that many. Let's see New Zealanders pull together now
to give the rest of them a chance. Let's have young people who are in jobs act as mentors to other
young people who are not so lucky. The best crime prevention strategy we could ever adopt would be
full employment".