STRUGGLE A MARXIST APPROACH TO AOTEAROA/NEW ZEALAND No: 120 : $1.50 : March 2006 Super-size My Pay Mobilise to End Youth Rates and Demand $12 Minimum Now In the face of widespread demands for an they rose by 28.8% in Australia, 39.5% end to age poverty, the Clark regime’s cob- in Canada, 46.9% in UK and 68.2% bled coalition has said it wants to raise the Finland. minimum wage to $12.00 per hour by the end of 2008 if ‘economic conditions per- • During the same two decades corporate mit’. But 2008 is too late for low paid and profits went from 34% of GDP to 46%. minimum wage workers - there is already a Wages as a share of GDP fell from 57% low wage crisis despite recent growth in the 42%. economy and record corporate profits. • Australian average wages are 30% high- The Unite union reports that tens of thou- er than NZ now when they were the sands of workers live on the current mini- same as NZ twenty years ago mum wage of $9.50 an hour for those 18 and older and $7.60 an hour for 16 and 17 Poverty-wages are increasing the gap year olds. There is no minimum wage for between rich and poor and increasing other those 15 and under. social inequalities. The majority of low paid and minimum wage workers are women, Compare that to Australia where the mini- Maori, pacific nation peoples, disabled, mum wage is $NZ13.85, nearly 50% higher youth, students and new migrants. than in New Zealand. The irony of all the National Party’s electoral claims about WORKING FOR FAMILIES IS disparity with Australian wage rates is that NOT THE ANSWER the wage growth in Australia came about The Government has recognised that the because of Federal Wage orders for the wages for many are too low. It solution is to lowest paid workers - higher paid workers provide taxpayer-funded top-ups for wages system for the large foreign and local corpo- got wage increases to maintain relativities. to people with families through its working rations. They are the major beneficiaries of Yet these are exactly the policies that John for families package. This is no more than a a scheme that crudely shackles wage earners Key is now attacking as damaging to the subsidy to business, allowing it to pay wages to a business friendly state. economy. that are not acceptible if it was all that the worker got. In effect the Government is LOW PAY = According to the SuperSizeMyPay.com picking up a chunk of the wage bill - but LOW PRODUCTIVITY campaign site: Despite once having one only for some workers. Those with families Any delay in increasing the minimum wage of the highest standards of living in OECD get top-ups, others get nothing. sends the message that New Zealand coun- countries, New Zealand now has one of the try can continue to be a low-wage low-pro- highest rates of low pay, child poverty and Working for Families de-couples income ductivity country. We cannot. Low wages income inequality from work the impact being that the general produces a whole lot of low-paying jobs, taxpayers replace part of the wages paid by with little incentive to look at increasing pro- • Real wages dropped in New Zealand the employer. In effect, Working for Families ductivity per worker, either through training by 6.5% between 1980-2001 whilst is a state– controlled and managed welfare continues overleaf... INSIDE: STRUGGLE ON... Air NZ Dispute . 2 New Mao Biography . 12 Muslims and Communists. 3 New Orleans . 15 Being Pakeha . .6 NGOs in Russia. 16 Danish Protests . 8 Philippines Update . 18 Marxism and Labour . 10 Rewi Alley. 19 STRUGGLE : March 2006 1 EDITORIAL Air NZ Workers: Now the Fight is On! Workers have sensibly rejected a union- player in the aged care industry currently only across-the-board concessions from all collaborative effort to slash their jobs, under attack in a corporate takeover bid 2100 engineering workers could see some wages and conditions – now they need to by the Australian McQuarrie Bank. of the heavy engineering jobs saved. Air make the fight a political one and throw NZ management said even changes in off the yoke of their class collaborationist Stiassny told the NZ Herald it was “phe- shift patterns, removal of penal rates and union bosses. nomenal” and an “amazing surprise”, to an ‘hours bank’ to manage the work load see “how far the [union] delegates and would not be cheaper than outsourcing. Rather than confront the Government members have moved on labour reform”. Air NZ is going to outsource all the jobs it (which owns 82% of the company) over It is “unusual”, he crowed, “to see a union wanted to in the first place, and is seeking Air NZ plans to shut-down its heavy engi- make those ... deliverables” and Air NZ ‘savings’ (read increase exploitation and neering aircraft repair operations, unions should take advantage of these conces- extraction of surplus value) from those turned to an anti-union accounting firm to sions. This has been the rhetoric domi- who remain – with no jobs saved at all. come up with a cost-saving scheme at the nating the media – followed by cries of expense of workers’ conditions. outrage that ‘a small group’ of workers The loss of our country’s heavy aircraft have now shafted the deal by refusing to repair capacity would be a major blow The Engineering, Printing and Manufacturing take cuts to their hard-fought-for wages to our strategically important transport Union (EPMU) and the Aviation and and conditions. infrastructure. The Labour-led government Marine Engineers Association (AMEA) must be forced to act in the interests of the put up a plan that would save only half of Andrew Little, the national secretary of people who elected it and protect the 600 the 600 jobs that would be lost if the engi- the EPMU, has embraced the account- jobs at risk while ensuring New Zealand neering work was outsourced off-shore. ants’ anti-worker plan. He sees it as ‘a continues to have a viable national airline. viable alternative’, but in selling workers’ Not only would more than 300 jobs disap- conditions in return for an unenforceable NATIONALISE AIR NEW ZEALAND pear, the workers who remain would have undertaking that some jobs will be saved, NOW! WORKERS, THROW-OFF to take a major wage cut and yet still be Little and the unions are playing right into THE SHACKLES OF YOUR UNION expected to do the same or even more the company’s hands. BOSSES! THESE WORKSHOPS ARE work. ASSETS OWNED BY THE PEOPLE OF Only a few days before the presentation NEW ZEALAND. OCCUPY TO KEEP Instead of making concessions, the unions of the union concessions to Air NZ, the THEM OURS! should be waging a campaign to force the company said that even a 25 per cent cut Government, to take full control of the in labour costs for the engineers would not airline and ensure the engineering repair be enough to save their jobs. Air NZ said facilities are kept open. Yet instead of tak- ing this fight to the Government – led by COVER STORY CONT. the Labour party that the EPMU spent hundreds of thousands of members dues or investment. As the CPA minimum pro- paign around the fast food industry can helping to get elected - the union wants its gramme published for the election pointed help these workers win a contract for these own members to pay even more, through out: the only way to increase productivity demands. It will also build the confidence their own labour, towards Air NZ’s mas- is to force it on employers, and wean them of low paid and minimum wage workers sive profits. off their dependence on low wages by and be a first step toward winning $12 mini- requiring wage increases in advance of infla- mum wage for all New Zealanders. We agree with Alliance Party co-leader tion. Even Treasury has noted that because Len Richards who says the unions ‘buck- workers are cheaper in New Zealand than As Communists we must build the united led under to the blackmail of the compa- Australia, New Zealand bosses under-invest front against the ruling regime at local and ny’. Air New Zealand is cynically using the in capital and lower productivity results. national levels. We must win over tactical threat of a complete closure of the repair allies. The Communist Party seeks to form workshops to extract ‘voluntary’ conces- Even the rabidly capitalist flag-waving alliances that would lead to more favorable sions from the workers. Dominion Post accepts there is no place for conditions for the revolutionary movement youth rates. ‘No one would argue’, it wrote and advance the interests of the broad Instead of fighting, the unions hired at the beginning of February, ‘that women masses of the people Michael Stiassny of the accountancy firm should be paid less than men for doing the Ferrier Hodgson who has come up with a same job, and it is equally absurd to accept As the people of Aotearoa increasingly plan that will mean far-reaching changes in that a 16-year-old should get less than a 19- mobilize, the Communist Party conducts work conditions in the hope that enough year-old just because of his birth date’. propaganda to make them aware that money can be saved to convince the com- fundamental changes in society will only pany to save 300 engineers’ jobs.