Interesting to read Duncan Garner’s take on John Key’s answering on the wage gap between Australia and New Zealand
Yesterday’s performance in Parliament was too selective and too slippery for him to get away with. All the statistics show the gap between Australian wages and Kiwi wages is growing – but Key refused to accept it. He refused to admit it. In fact he went the other way – he said the gap is closing. It’s not, no matter which figures you focus on.
It was an interesting insight into the sensitivity of the government on this issue that Key would try to argue that black was white, when the numbers, even under his chosen construction pointed to the gap widening. It was a bit more than slippery too- it was a very deliberate attempt to mislead.
All of this began as a result of questioning on the absence of an economic plan from National to achieve their stated objective of catching up with Australia. This is a vitally important issue for the country. Concern about this is not only coming from our side of the political spectrum but also from those more closely aligned with the Nats.
Trans-Tasman, the political newsletter today devotes a significant amount of space to concern about the lack of courage in the Government’s programme noting that the obesession with a safety first approach is raising questions about the willingness to take the hard calls and saying poll driven leadership is raising questions about policy intentions.
Many months ago on this blog I described Mr Key as being ” all map and no compass”. As they say in the House, I stand by that statement.
Posted in Australia, Wages, Economy and National. |
Wages are the real issue in NZ (as opposed to tax cuts) but they are also the big story of the day in Shanghai. Not, perhaps what people might expect. The story here has not a very pleasant basis. Foxconn the manufacturer for major technology companies such as Apple and Dell, and currently producing millions of I-Pads has been rocked by ten suicides at it Shenzen plant in Southern China. The response has been a commitment to a (relatively) massive wage increase of 122% for workers at the Shenzen plant from the 1st of October, and other big increases at Foxconn plants in China.
It is easy to be cynical about the company’s motives here. There has been considerable concern about the conditions that Foxconn workers have worked under, though the company (and Apple and others) are adamant that these are not sweatshops.
But I am told that the real story here is of the growing strength of workers in the South, and of the days of them accepting such low wages being over. Its really hard to tell as a visitor, but what I read says there have been significant wage increases in other areas as well, as the pool of available labour reduces. Of course we can not forget they are coming from an incredibly low base, but there is a sign of real movement. The response has varied from threats of moving production to India or Vietnam, to the likelihood of increased prices for I-Pads and the like. Whatever the case it seems that the “dignity” of workers as the Chief Executive of Foxconn has described as being behind wage increases may be a very significant factor in the future of this country.
Ok, off to Expo now for Young Leaders Forum and Wellington’s big film and business night. Report to follow.
Posted in Wages, Technology and China. |
