Transformation to a high wage; high skill economy

If the Maori Party is part of Government following the 2008 General Election, how would our industrial relations policy assist in transforming Aotearoa from a low wage / low skill economy to a high wage / high skill economy?

In the weekend leading up to this hui, Te Puni Kokiri released a report which gave life to the adage, the grass is always greener on the other side of the ditch.

The report revealed that respondents, some 1200 Maori living in Australia, concluded their wages had improved markedly – a doubling of wages was not uncommon – and that they enjoyed improved working conditions, career advancement – indeed much better employment opportunities.

The author of the report, Paul Hamer, concluded:

Some felt this was simply because of the economic opportunities in Australia, but others said it had as much to do with being freed from an environment in which Maori were encouraged or expected to do well, including by their own people, or allowed to by what they perceived as a racist system.

In that one report, I think we have part of the solution as to how we can transform Aotearoa from a low wage / low skill economy to a high wage / high skill economy.

Transformation to a high wage, high skill economy is implicitly wrapped up in how we value education and the human endeavour.

What explanation can we take from the fact that the median income of the New Zealand population is $24, 400 but that Maori sit $3500 below that on $20,900?

When we have asked why, the answers have been disappointing. "Because Maori are younger, less skilled, less experienced".

Is it any wonder why Maori cross the Tasman to get better paid work, with more options in front of them?

The demographics of our population are not disputed - the median age of both Maori and Pasifika populations is 21 years, compared to the total population of 36 years – but is that justification in itself for offering a lower minimum wage?

Apparently so, as the recent Minimum Wage (New Entrant) Bill demonstrated when Labour made changes at the select committee stage, which effectively meant that young people could still be discriminated against on the basis of age and were still being forced to accept only 80% of a minimum wage.

The less skilled factor is also not denied. Although we welcome the focus of the Tertiary Education Strategy to increase the number of people completing qualifications at levels 4 and above, we know that Maori have a much lower completion rate at higher qualification levels than all other ethnicities:

only 32% making it through to Masters level compared to 47% of the total;
only 13% making it through to Doctorate level compared to 27% of the total.

That’s a fifteen and fourteen percent difference respectively.

Low wage; low skill – and low morale – it all adds up.

We believe that a job should keep you out of poverty, not keep you poor.

We also believe that the rates of advancing skills and enjoying new insights in Aotearoa are not as high as they could be.

Our interest as the Maori Party is in growing a sustainable economy in which employment and economic enterprise and innovation in industry, business and trade is nurtured, while at the same time maintaining the integrity of the environment.

To facilitate this we have suggested that growing a sustainable prosperity for communities and the nation should be measured by a Genuine Progress Index - a new measure of sustainability, wellbeing and quality of life.

A Genuine Progress Index takes into account the cost of a downward slide in real wages, declining personal disposable income alongside the rocketing household spending.

As one of the women in TPK’s report said – in Wellington she needed to work three jobs to raise her children, but in Australia she got by comfortably with one.

Under the terms of a genuine progress index, or GPI, the net Crown debt would only grow at the rate of genuine progress – and not be increased to meet the cost of negative components of GDP such as building jails.

The GPI provides us with another way of looking at the pathway being trod by Kiwimade companies such as the threat of Norsewear’s retreat to China; the arrangements that New Zealand icon industry Fisher and Paykell is forging with Thailand and Turkey and now I understand, Eastern Europe.

In countries that have a few who are extremely wealthy, and a mass of low wage earners, one must always ask, where is the morality in all of this?

These companies are protesting they need to move their manufacturing plants overseas because of the high Kiwi dollar, but in the process are ignoring the highly skilled New Zealand workforce in preference for a low waged economy overseas.

GPI accounting questions the morality of such decisions, made to maximise profits and yet placing at risk our standards of behaviour regarding respect for human rights.

We in the Maori Party have advocated for tangata whenua involvement in all bilateral and multilateral trade agreements.

We are concerned that labour standards will be compromised, environmental concerns over-ridden, and Maori cultural and intellectual property rights threatened by free trade agreements which penalise the international poor for financial gain.

Fleeing the shores of Aotearoa for low wage economies overseas does nothing to address a higher living wage for workers here in Aotearoa.

We have consistently argued an industrial relations policy which seeks to consider how best to raise minimum wage levels, and bring average income levels up while at the same time calling for greater corporate accountability.

We support the growth of social responsibility businesses, and many of the proposals that have emerged from the New Zealand Business Council for Sustainable Development.

I was interested in an online survey earlier this year in which out of 3088 respondents, the majority believed that business has a role in cradle-to-grave product stewardship, and taking care of the environment. Seven out of 10 respondents said a company's environmental performance has a big impact on whether they’ll buy their products.

Our over-riding thoughts about how best to achieve a high wage, high skills economy flow from our consistent pursuit of fairness, due access to justice and the expression of kaupapa Maori.

Promoting public attitudes to wealth creation, business success and entrepreneurship should and can be couched within kaupapa Maori such as kotahitanga – demonstrating commitment and unity of purpose in pursuit of a vision; or kaitiakitanga – exercising responsibility as whanau, hapu and iwi to our environment.

Under such a framework, for example, the expression of rangatiratanga – opportunities for Maori to develop as the Maori partner to the Treaty – are inevitably suppressed with data which reveals that in 2006 only 3.62% of full time equivalent university staff are Maori – some 244 staff out of a total of 6735.

So how would our industrial relations policy assist in transforming Aotearoa from a low wage / low skill economy to a high wage / high skill economy?

We support a higher living wage for all.

We seek the promotion of responsible wealth – advocating for common justice which makes explicit the deepening income inequality in this nation – inequalities and disparities which are disproportionately located with Maori and Pasifika populations.

We will consistently stand up and speak out to eradicate poverty.

We support flexible employment, valuing and recognising the vital role that the community and voluntary sector plays in the economy; and recognising the added value that worklife balance gives in creating a healthy society.

The Maori Party will always support any initiatives which will increase and improve Maori employment levels.

And we have been keen to promote opportunities for Maori businesses to thrive, by enhancing proposals to be worker friendly.

Our record in Parliament shows we have been supportive of pay and employment equity legislation, including people in self-employment, part-time and casual work. We will always vote against discrimination, regardless of the form it takes. The Minimum Wage (New Entrants) Amendment Act 2007 is the latest example of our voting in opposition to discrimination, in that instance discrimination on the basis of age.

We will always support the right for the rangatiratanga of both employers and employees to be upheld; and neither needs to be in opposition to the other. We believe that both can co-exist in a respectful and safe working environment.

All of these policy elements are but part of the bigger concern for us – that despite a booming economy, many New Zealanders are not sharing in the prosperity.

Perhaps the final word goes back to the TPK report, and a comment from Tipene Keenan who claimed that workplace laws introduced in New Zealand had, and I quote, “resulted in a mass exodus of hundreds of thousands of New Zealanders across the Tasman to Australia where we could receive decent pay and conditions”.

Those words were published in an article in 2005, entitled Maori aren’t going to haka it.

The Maori Party is determined that the haka we do as a nation, must be one in which our own come home, encouraged by better housing, finances and employment; with opportunity to retrain, to study, to invest in and to rebuild our community wellbeing.

It is a challenge that we – along with ASTE – will face willingly.