What are Fletcher’s playing at?
Fletcher Building is one of New Zealand’s largest companies. They are cutting hundreds of jobs, across Australia and New Zealand.
Speaking after the company’s annual general meeting in Auckland today, chief executive Jonathan Ling said the job cuts were ”significant”, although its total workforce globally comprises around 20,000 people. He didn’t know the exact number of redundancies, but said there had been a ”few hundred” job losses in Placemakers here and across the Tasman, 22 in Wellington construction and a further 200 job losses in Australia across the board.
Ok, so sometimes this is unavoidable. There is a recession, and because house sales are affected quite badly, and lending has dried up for people t0 buy, build or renovate I guess it’s not a huge shock. What is a huge shock is:
Meanwhile, the board today sought shareholder approval to increase the pool of directors’ remuneration by $500,000 to $2 million per annum
Now this is what I would call an “Occupy Wellington” moment.
How the hell can any company claim it has to make job cuts while at the same time wanting to use $500,000 of the saved money to pay the bosses. That is just wrong.
They make some excuses for why they should be allowed to do this, and apparently had 90% votes in favour via Proxy Votes (from experience that seems to amount to shareholders signing to say the fox gets to take charge of the hens). I’m all for high pay for good staff.
But I think it is just sickening that this is still going on, and at a time when there should be a spotlight on this kind of behaviour. Bottom line – if the company has $500,000 going spare every year for directors pay increases, it should use that to keep more staff on.
Are you the 99%, 53%, 1% or who cares what %?
Filed under: Banks, Cost of living, Economics, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ
The “Occupy Wall St” protest has hit New Zealand this weekend – “occupying” Auckland, Wellington, Christchurch and Dunedin. I have tried to get my head around this – and I have to say I am failing miserably. When I started seeing “We are the 99%” posts coming up on my Facebook feed – I took a look at that and understood what they were saying.
We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we’re working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent.
I get anger that banks and financial institutions had screwed up, lost an awful lot of money, got bail outs, and yet still managed to find many millions of dollars to pay huge bonuses to the people who screwed it all up, while people lost homes and jobs.
Well who wouldn’t be pissed at that? I find it astonishing that governments are bailing private companies out, but there’s not a penny for us if we hit the skids. No one bailed us out when IBM got rid of hubby. We had to manage that ourselves – as does everyone. We have friends who have lost everything – no one bailed them out.
But I am also somewhat confused about why the blame is only being shoved on the corporates – and not those of us (ie just about all of us) who have spent the past decade or 2 spending vast sums of money we don’t have (ie debt) on cars, various iGadgets,clothes, shoes, posh food, holidays and houses. We have to take some responsibility here. Blaming the big bad corporation doesn’t change the fact that as a whole the western world gorged itself on debt and consumerism. No one forced us to buy iPhones. (I wonder how many people occupying Wall St still have smartphones, and are updating Facebook with their adventures via the very items the corporations sold us, and we willingly bought with money that the banks invented for us to spend, increasing the debt balloon that they now say is the source of all ill in the world).
But what has got me really confused was this has morphed into a strange anti-government, anti-money,anti-whatever-we-can-think-of-to-be-peeved-about-as-long-as-we-can-blame-the-anyone-who-is-richer-than-us sort of movement. Everyone is supposed to have a voice – no one is considered to be worth more than anyone else. This to me is an alien concept – in $ terms of course people are worth different amount – please never let a brain surgeon work on me if you only pay them the same as the cleaner. In human terms – I will always value kindness and decency in someone more than I will value someone being an arse.
I saw this video of the “assembly” in Atlanta – I gotta say – if that’s the alternative to the current political system we have – no thanks.
I am way too independent to sit there and parrot back what I am told to say – what are we? 5? Repeat after me “You are all individuals”…
So – are you the 99%? Probably not.
Global Rich List puts your income into world wide terms. And you may be surprised at how little income it actually takes to get you into the top 1% of earners in the world. Global Rich List doesn’t work for NZ$, but just £25,000 a year or $49,000 USD gets you there. At current exchange rates that works out at $49,500 or $61,500 NZD.
The New Zealand minimum wage is $27,040 a year which (using the UK£ to work it out – £13,600) puts you in the top 10.5% richest people in the world. And yet on that how many people still have mobile phones and internet access?
The median wage in New Zealand is $49,000. That means that 50% of wage earners in New Zealand are actually among the top 1% of earners in the world.
Those of us who pay for those of you who whine about all of that… or that… or whatever.
Ok – so this made me laugh. Can’t see this lot repeating back what they are told 3 words at a time and looking gormless.
So I won’t be occupying Wellington. To be honest I am too damn busy dealing with our current financial situation, budgeting our money, saving where and I can and spending what I have spare on stuff produced by people who also earn money. Some of them earn less than me, some of them earn more than me. Some of them are worth that much, some of them aren’t. I make that decision myself, and decide for myself where I will spend money, how much to spend, and whether to take on debt. If I take on debt – I take full responsibility for that decision, and for any mistakes I may make.
And I have absolutely no idea which % I am.
I am not a number – I am a free man .
For Shane: The problems with overseas workers.
As promised, Ive copied the comment from Shane, so that it’s easier to both write a response and for people to read it. I guess for some people, the questions could be seen as “anti-immigrant” but I hope that most people will understand where he is coming from. I believe that these points are well made, and need to be thought about.
I am writing today too see what your thoughts are on Overseas workers – work force at present,
I have just spent 3 years working on projects around Taranaki in the Oil and generating electricity sector. I am a New Zealander born and bred and also a qualified electrician.
Recently have finished work on a big project, a company laid off 40 electricians, 10 stayed on, they were all from overseas – only a couple of them have just got nz qualified electrician, but the rest work under the company electrical licence – how does this help the NZ electricians ??
It doesn’t – and as far as I’m aware that it is total contravention of what immigration is there for. In fact – I blogged briefly in March last year about a similar issue – also in Taranaki. The original article in the papers is here. The important think to understand is whether the 10 people who were kept on were on Work Visas – or were permanent residents. If they were residents, then theres really not much you can do I’m afraid – they have actually worked through the legal process and have a right to the job if they will accept the wages (see below – my hubby has the same issue with Kiwis working for low wages).
If however they are on Work Permits – I would personally suggest you contact the journalist who wrote that article. It really is the best way to get things done in New Zealand – talk to the media. If I was going to make any more complaints about the immigration Dept – I honestly wouldn’t bother – Id just talk to the press and cause a load of hassle.
You also need to consider that while these migrants have just qualified in NZ (or not) – they may have decades of experience overseas that is basically shat on by New Zealand and totally discounted. Many British electricians are forced to work for peanuts when the come here despite being highly qualified and experienced sparkies. This is because of the outdated and stupid rules that says none of that counts for squat here. Again – it may actually not be the fault of the immigrant that they get paid so poorly. I have heard many UK sparkies complain bitterly at being paid so badly here, and it’s certainly not their choice – and they aren’t doing it to go to Australia. They have given up everything to move here.
Presently i have notice big electrical companies in the area hiring overseas workers to fill jobs in this region…….
1. Overseas workers are paid less – there fore less tax to the government – how is this beneficial to our country
This has always annoyed me – and it happens to be something that I have spoken and written about ever since we came to NZ ourselves almost 6 years ago. If the Skilled Migrant system was being used properly – then overseas workers should be employed because they have skills that NZ needs – so why are they being paid less? Often we have skills that NZers don’t actually have, but are needed, yet we get paid less becuase we aren’t Kiwis? I guess in this, Ive been arguing the other side of the point from you – but thinking about it it would have the same result. Overseas workers would not be hired because they are cheaper than Kiwi’s.
To me that is wrong, and its both exploiting an overseas workforce, and as you point out – there are Kiwis who should have those jobs. Immigration is supposed to fill a Labour gap – not create unemployment for Kiwis.
2. Overseas workers send all their money offshore to support their families – how does this benefit our country
I’m going to assume here that you are not in fact talking about ALL overseas workers? I think its fair to say that most of the migrants I personally know are Brits, and I would like to assure you that our wages are sure as hell not leaving NZ – we can’t afford to do that! I wish I knew the answer to this – it happens in Britain as well – and is about as popular. You can’t ban people from doing it – and I cant see a way for the immigration dept to screen people coming here on the basis of where they spend the money they earn.
It does kinda worry me that low NZ wages are still considered high enough for some people to leave their families, come here to work, and still have enough left over to send back home.
3. Overseas worker are only here for 3 years to achieve NZ residency, then off they go to AUZ where they get better pay,
To be fair – that happens the other way as well. When migrants decide they want to go to either Australia or New Zealand, there is always the option of going to the one where you can get a job, and using that to bounce into the other. We were personally advised to emigrate to Australia first as a way of getting into New Zealand. No good for us – as I sure as hell wasn’t going to live in Aus!
Also, it is the case that less immigrants leave New Zealand to go to Australia than Kiwis.
4. so while this happens Overseas worker don’t care about working conditions, hourly rates, all they are here for is to get NZ residency and leave,
Nutters! Yeah – I feel your frustration on this one. In hubbies line of work there is often the same issue: people (often Kiwis in this case) who are prepared to accept being treated like crap, get paid a lot less than they are worth, don’t get pay rises for years on end, don’t get a bonus unless they do the jobs of 10 people. I’m not sure that would be particularly an Overseas worker issue – though again – I’m happy to accept that the kind of work you were doing would mean you are seeing something quite different to me.
I know immigration have stepped in recently and prosecuted some guys for using overseas farm labour – basically little more than slaves. It’s an extreme version of what you are talking about – but yes – a lot of farm workers were being paid a few dollars an hour, and it took a long time for them to complain about it to the authorities.
5. mean while this is driving down my working conditions and hourly rate.
Yep. Again – we have the same issue – if people are willing to work the equivalent of 10 jobs for less money and worse conditions than my hubby would – oddly enough – he’s the one that loses his job. One of the reasons I actually write this blog – and wrote the book – and before that used to write on forums, was to persuade immigrants that taking a low paid job just because it was in New Zealand was counterproductive – for everyone. We are fed a line that living here is so cheap, we don’t NEED to earn much – then once you get here on a low salary – it takes some guts to fight for more. It’s complete bollocks of course – Kiwis all know that living here is relatively expensive – but migrants don’t know that. They are being conned by Kiwi Employers into taking those crap wages and working conditions.
6. Then the companies hire overseas workers are making more money as they pay them less and charge out the same rate regardless, are hiring good accountants to hide their tax’s and make more profit.
I should declare that I’m personally a huge fan of hiring an accountant so I pay less tax (which I will continue to do until governments world-wide stop wasting taxes becuase there know theres an endless store of more funds they can steal from me). If you haven’t really read my blog before – you may not have come across that. Companies making a profit is not a bad thing – but on the one hand exploiting cheap migrant labour while on the other hand refusing Kiwis work is in my book NOT the way to do that.
7. Meanwhile i sit on the dole as a citizen of this country with a trade
8. And yes – i have rang WINZ and ask what they have in plan for Qualified, experienced trades person like myself for CHCH clean up and helping – and like all government agency’s – i have yet to hear back from WINZ…..i wonder if you can help on these questions ??
I think you may be working at this from the wrong angle to be honest. Please consider emailing that journalist – and see if theres a story here for them. You certainly shouldn’t be on the dole with a skill like this – and as I understand whats happening with immigration – they CANNOT give a work visa to a migrant if theres a Kiwi that can do the job. I know from what I was told about 12 months by a staffer at Immigration that they are turning down 95% of work visa applications. And many migrants on work visas (those are the temporary ones – different from Permanent residence) are being sent back to their home countries even if they have been here for many years.
As for Christchurch – I think thats exactly where you should be heading. I’m gobsmacked that WINZ aren’t on top of this already! But then again – maybe I shouldn’t be. In your shoes – I would actually contact the Sallie Army down there and see if they have any contacts of people looking for sparkies. Possibly even the mayors office? There has to be someone down there who can point you in the right direction.
Regarding the issue of whether you have lost your job to a migrant when the company should not be employing migrants if Kiwis are available:
Well – as Ive said above – you need to understand that theres really only an issue you can do something about if they are on Temporary Work Permits. If you know that is the case – and you choose to make a complaint and not go to the media – the address you need is:
The Manager
Compliance Operations
Immigration New Zealand
PO Box 5342
AUCKLAND
At least I think it is – I couldn’t find any clear info that covers your issue. Just be aware that Immigration don’t take kindly to people making complaints – probably you’ll get as far as you would with letters to MP’s! I still reckon the media is the way to go – but DO make sure you have your facts right about the migrants involved. Thats really important – otherwise you will do your case more harm than good.
I know thats not really much help to your current situation, but I hope I have helped in some way. And I hope you get that job soon.
Good luck 
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Telling your boss to stick it ;)
Here’s something for all shat on employees, in any company, in any country. Of course I’m not thinking of any particular company or any particular country.
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Arghhh – having to pay interest on the credit card!
Filed under: Avalon's Money Thread, Cost of living, Interest Rates, Credit Cards & Mortgages in NZ
Well, for the first time in five and half years – I cannot pay off the whole balance on our credit cards, and we will be paying interest.
This is quite depressing.
I guess I should be happy that its only likely to be a few months where we have to pay, and that we have been able to organise our finances so well for so long that we haven’t had to do this thus far while we have lived in New Zealand. But still – its damned annoying.
Especially since the interest rate is a whopping 19.95%
So – from here on in – hard nosed budgeting and spending restrictions to get us back on track as fast as possible.
Why has this happened?
Some really big bills I’m afraid. Despite the emergency fund, which I still have some left of, we have had some really big expenses come through and no income. The emergency fund is coving our living expenses and top ups on the rentals, but it cant cover:
- Some large medical bills.
- Set up costs for Hubby’s contracting business.
- Legal fees
- Buying furniture for an apartment in the city. (and yes – even though we have 2 houses worth of furniture – it still turns out we need a few things – that was a depressing moment!)
Hubby has income coming in now, but almost all of it is paying the setup costs: new computer, travel, phones, internet bills, city pad – it all adds up.
And at least this time I actually know what I’m doing. I know how to work through the budgets, I know how to cut costs, and I know how to stick to the harder decisions. One thing I am sure of – that debt is not going to be there long. Ill be paying money into it as soon and as often as I can.
I’m just not sure how to cut my coffee budget
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Moving back into Wellington.
Filed under: Cost of living, Jobs & Work, Property & General Investing
The one thing you can pretty much be sure of when you emigrate, is that things don’t always go quite to plan.
Hubby’s redundancy has thrown a bit of a spanner in the works, in that he can’t work at home. The contracts he’s on mean he has to be in the office, so it’s getting difficult to maintain a life in the Wairarapa and keep stress levels down. So we have been renting a Studio apartment in town, which he lives in during the week, sometimes with me there as well.
Unfortunately its too small for both of us, so we were stuck with living apart most of the time, and that’s just not exactly the “lifestyle” we were after when we emigrated.
So we have bitten the bullet and rented a full size two bed apartment in the centre of the city. We actually own an apartment in the same block, but its tenanted – and besides – it would actually cost us a lot more to live in our own apartment.
I say full size because New Zealand cities (Particularly Auckland and now Wellington is following) are notorious for “shoe box” apartments. That’s fine if you are renting studios or 1 beds for just a single person, but I saw some brand new 2 bed apartments the other week that were about half the size of ours (and only a bit less in price). It pays to be aware of this if you are renting – don’t rent anything without seeing it first – you will probably get a shock.
So we are going to actually become the kind of “trendy wellingtonians” who live in the city during the week, and descend en masse to the Wairarapa at the weekends. Because I know full well that I cant live in town full time – its too crowded and noisy for me. I intend to make the most of city living – it will be nice to get back to going to the movies regularly for example, but I know I need to be able to get away from it as well.
And to be honest we live in such a stunning place – I just don’t really think giving up the big house in the country with the pool is an option.
So – I may be writing some slightly different blog posts – more stuff about Wellington and less about living in the back of beyond.
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Taking IBM to Employment Court
We’ve written previously about IBM redundancies and how they completely ignored what should be done in NZ.
‘cos it’s just business.
And also about how they refused to attend mediation
Since they’re a really big company and they were just doing business.
After a lot of dragging of feet on IBM’s part, and refusal to acknowledge anything was up
It’s all just business don’t I know?
We’re off to the Mediation (finally) this week.
You see, the ERA (Employment relations Authority) has the power to force parties to attend mediation. While this can’t of course ensure that a mutually satisfactory agreement is reached, it’s the first step in formal court proceedings. If we can’t agree on anything, then it’s off to court we go and everything suddenly becomes a matter of public record.
My job can sometimes be a little strange. Investigating what has happened to the IT systems of a company, spending weeks justifying why we need to invest some small amount of money on something to stop some people doing something we don’t want them too. [sorry for the very non-specifics, just best I don't use an example]
Until you find the right person in the organisation, whose job it is is to keep the Minister/General Manager/CEO ‘s name off the front page of the DomPost for anything other than good reasons.
This is often the acid test. Will what I’m doing keep the organisation off the radar of a bored journalist with nothing other than sifting through boxes of credit card receipts to occupy their time? [although I applaud the UK & NZ newspapers that have kept at this particular story, irrespective of debates about the journalists motivations. They are holding our elected representatives to account when those representatives seemed to feel they were beyond account. And after all, it's just business for the newspapers.]
And so with IBM, the mediation isn’t about right or wrong, it’s an acid test.
We have a strong case. Plus a very good lawyer, who spends a lot of time arguing for the Employer’s side so he knows what it’ll look like from the other end.
It’s the first major step in holding IBM to account for how it’s messed about with people’s lives.
Apparently dealing with the occasional employment relations matter is just a cost of doing business for IBM NZ.
As a current customer, a former employee, an existing shareholder – I personally believe there is a better way of doing business. I’m a bit funny like that sometimes.
[Added by Avalon: The budgeting has come in handy - we have managed OK this far on our savings. But although Hubby has plenty of work, there are long delays in getting paid for it, on top of having expenses in setting up a new consulting business. This is not an easy process to go through, and i personally have nothing but contempt for IBM in refusing twice to go to mediation, costing us lawyers fees and making the stress a whole lot worse. They are acting like bullies - which is par for the course in the NZ / Aus company. They have tried to force us to back down, and we have refused to be bullied. I hope one day theres a new management in New Zealand who actually run the company properly, not based on their silly personal insecurities over staff who get paid more than them.
If we settle on Wednesday, it is unlikely that we will be able to tell you how much for im afraid, but we should be able to tell you whether we settled or will be going to court. Court will cost us a fair bit of money, and theres no guarantee we would win, even with a strong case. But we will do that if IBM continue ride roughshod over us and the law. There have been a few recent cases in the papers with similar issues to Hubby's that won, so we have case law behind us.]
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Funnies for Hubby
Both of us are down with the most awful sore throat and colds right now. Hubby is actually a lot worse than me – utterly unable to speak. So heres some humour to cheer him up.
especially as we have less than 2 weeks till we finally get a mediation meeting with IBM, them having refused to do so twice.
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The life and times of a corporate ant.
PS: I have no idea who to credit this to – but they are a pure genius, and they have my sincere gratitude for a thousand laughs this evening!!!
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Still making the most of redundancy.
I know that this is usually an incredibly stressful time for most people – but we doing our best to make the most of the situation. We are finding a sense of humor (sometimes slightly dark it has to be said), and making the most of the enforced time off is making it easier to cope with.
When Hubby was last made redundant – from Unisys – he created this “De-motivational” poster to send to his friends who hadn’t been booted. (They have the same slightly warped sense of humour).
Well, we were having one of our relaxing days out the beach earlier last week, and thought it was time to make an updated poster.
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