O’Reilly predicts public service strife

December 27th, 2009 at 10:50 am by David Farrar

The SST reports:

BUSINESS BOSS Phil O’Reilly is predicting 2010 will be a year of industrial strife and an “ugly” budget that will bump up the GST rate.

O’Reilly, the chief executive of Business NZ, said he expected “fireworks” from public sector unions as the government tightened the screws on spending, and Finance Minister Bill English has said total government spending cannot increase more than $1.1 billion in the May budget, a difficult task considering that public hospitals alone have been soaking up an extra $700 million a year in recent budgets. English has warned public servants such as teachers and nurses not to expect pay increases that are “out of line with realistic expectations”.

More than 50,000 primary and secondary teachers will negotiate a new pay deal with the government when their current agreement expires at the end of June.

“I think we will see quite a few sparks fly,” O’Reilly said. “Government departments are being told how much they can spend so you’re going to see an ugly budget from the perspective of government spending and that will impact people like the state sector unions, the teacher unions and so on. I wouldn’t be at all surprised if some of that was turned into industrial action.”

NZ Council of Trade Unions president Helen Kelly said O’Reilly was being “hysterical” but warned that public sector workers would not tolerate zero pay increases or cuts in services.

“We are ready for that kind of a year but we hope commonsense will prevail.

I am all for common sense. Common sense is that the economy has grown only 0.4% in the last six months, so pay increases greater than the rate of economic growth are not common sense. Likewise borrowing more money to fund pay increases is not common sense when you are borrowing $240 million every week just to pay for current salaries.

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25 Responses to “O’Reilly predicts public service strife”

  1. Redbaiter (13,197) Says:

    ” Likewise borrowing more money to fund pay increases is not common sense when you are borrowing $240 million every week just to pay for current salaries. ”

    Likewise borrowing $240 million every week to pay the salaries of many bureaucrats whose main task is to cripple the economy is not common sense.

    The money should not be borrowed, thereby relieving NZ’s productive sector of a crippling debt, and the bureaucrats should be fired and put on the dole, thereby relieving the productive sector of an army of socialists so blinded by ideology their main intent is to kill off the private enterprise that sustains their lifestyle.

    Not only common sense, but also win win.

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  2. Sean (269) Says:

    Public sector workers and their union might legitimately, if without common sense, ‘not tolerate’ a zero pay increase; but it should be none of their concern that this Government cuts services. Their job is to implement; we elect governments to decide.

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  3. big bruv (11,202) Says:

    Bring it on!

    If the Nat’s do nothing else next year I could live with it as long as they do not back down to the teachers union and those in the public sector who think that a govt job is an insulation to the economic woes the rest of us have had to face in 09.

    These people should be reminded that the pay increase they demand comes out of the pockets of those who are productive and those who have more than likely not had a pay rise themselves for at least one year and more than likely two or three years.

    Public sector jobs come with job security, at a time like this they should be factoring that into their wage demands, when the rest of us (the producers) start earning more then and only then should the public sector even think about demanding more.

    A zero increase is the only logical and acceptable result.

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  4. Redbaiter (13,197) Says:

    “A zero increase is the only logical and acceptable result.”

    For you maybe. I want the bastards fired. At least on the dole they’re not putting their energy into finding ways to cripple the productive sector.

    Basically, a large part of the government sector is run as a work for the dole scheme anyway. Only difference is that as part of their ‘work” the participants are responsible for dreaming up countless obstacles that impede the productive sector.

    We’re better off with these bastards on the streets than in government offices.

    Too cruel?? Jezuz- $240 million is a lot of money that we have to pay back. (we, not them).

    And they all vote for socialism anyway.

    Fuck em I say. If we didn’t have a pack of soft little lefty PC girls for a government, they would fire the lot of them.

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  5. F E Smith (2,521) Says:

    Come on, if the government can this year see fit to cut the rate of pay for cases accepted on legal aid (with only a 10% increase last year on the 1996 rates that were in force previously) without any industrial action from the lawyers, then surely the public service can take pay cuts as well.

    I know far too well that their pay has been spiralling every upwards these last ten years. They should not complain now.

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  6. MT_Tinman (2,227) Says:

    Red it ain’t often I completely agree with you.

    I’d not only fire the bastards but enforce a percentage pay-back demand for each and every one of them who could not justify their salary (showing productivity, results and effect) for the last five years.

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  7. jaba (1,920) Says:

    of course there will be strikes and protests .. the unions are Labours only hope as the party has had a VERY bad year .. once again, it will be the head of the EMPU, I mean the Labour Party Pres, pulling the strings as he has little real faith that Philin Goof will do much.

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  8. MajorBloodnok (356) Says:

    We need to publicise the Irish budget, to soften up the PSA. In Ireland:
    * public servants will face pay cuts ranging from 5% to 15% (rising with salary);
    * the PM’s salary will drop by 20%, as those at the top lead by example;
    * large cuts to social welfare
    * large cuts to other govt spending
    * large cuts to infrastructure spending
    * company tax stays at 12.5%

    I agree with Redbaiter that the best options for the NZ budget is the elimination of whole departments that cannot justify their existence. There should be NO GOVT SPENDING INCREASE. The borrowing should stop — just balance the books.

    I have not had a pay rise for 2 years. I don’t want my taxes going to rises for public servants, or other bludgers.

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  9. side show bob (3,660) Says:

    Dance little grasshoppers, dance you fools, the longest day has come and gone and winter is on it’s way. 2010 promises to be very cold for the socialist leeches and global warming isn’t going to save the pricks.

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  10. freedom101 (350) Says:

    There are hundreds of thousands of people running their own businesses who have taken 20%, 50% or even 70% pay cuts this year. And they pay the taxes to pay the salaries of the bureacrats. I know plenty of government workers and they don’t sweat at the weekends or in the evenings. Their pay should be set at 80% of their private sector equivalent whereas from what I can see they are at 120% of what they would get in the private sector.

    In short, a guaranteed income is worth a lot more than an income that can go up or down week by week and year by year, hence the pay of public servants should be at a discount to private sector pay.

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  11. dime (6,204) Says:

    shit yeah, Dime took a hit this year! next years lookin up though :)

    National promised not to decrease public jobs… they didnt say they wouldnt fuck with their pay though. i want to see something brutal!

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  12. Viking2 (9,463) Says:

    Common sense is that the economy has grown only 0.4% in the last six months, so pay increases greater than the rate of economic growth are not common sense.

    What about adding the comparison for the last 4 – 9 years. Its a lot worse than this.
    No reason at all why Govt. can’t prune out a lot of useless quango’s etc.
    Talking of which I see the useless wanker De Bris had to have his say about the Nazi uniforms and how much they offended everyone. His outfit should be first to go along with Broadcasting Standards , Womens affairs et al.

    If we couldn’t save 250 mil a week there would be something wrong with us.

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  13. Seamonkey Madness (328) Says:

    Major B,

    Couldn’t agree with you more. Ireland is similar to NZ, both in population size and until recently, our economies. Granted, the Irish had a bigger bubble burst, but they are definitely leading the way when it comes to keeping the public sector roustabouts in check.

    Those in the public service over there are bloody thankful they are getting pay cuts and not pink slips. A mate who is living over there with a highly transportable qualification cannot find a (private sector) job. And this is after nearly six months of looking!

    Suck it up Unions – you could have it so much worse!

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  14. Countess (157) Says:

    These things go in cycles, during the last nine years the Labour government was paying off government debt.

    But Key and English at the same time were saying “borrow more” like some Witches of Eastwick.

    But there is money for Ministers housing allowances to become an unaudited flat rate for all!

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  15. Southern Raider (1,317) Says:

    So no one in my company (as far as I am aware) got any pay rise at all this year. Yet the unions believe they should be exempt?

    We made budget and got nothing. What is their justification?

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  16. boredboy (237) Says:

    “NZ Council of Trade Unions president Helen Kelly said O’Reilly was being “hysterical” but warned that public sector workers would not tolerate zero pay increases or cuts in services.”

    Stiff bikkies.

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  17. Southern Raider (1,317) Says:

    Unions are last century and as such should be forgotten

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  18. somewhatthoughtful (400) Says:

    lol southern raider. and how about freedom of association? and what if people choose freely to join the union because they can get a better deal than that person can by themselves? forced individualism is a bit ironic isn’t it? dumbass

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  19. Tassman (238) Says:

    I totally agree that 2010 is the year of striving backward…
    First, the gender debate is a power assertion over nature, which will define and expand the gap between the modern and tradition. This has already reinforced a guilt driven mass media campaign targeting men. The mental and emotional impact continues to victimise vulnerable men. It shall reflect anti authority, and passed down to the other members of the family including children.

    Second, the atheist argument is fundamentally flawed when pointing the finger at apes and monkeys while at the same time believing humans are descended from them. Look who’s doing the thinking now!

    Third, society will never truly experience a ‘national’ will when only two cultures enjoy society’s wealth while all other cultures are excluded. National has turned socialist liberal in allied with a far left radical party to represent a global agenda. These global and monetary policies only favour private investers at the expense of mass employment. At the same time, social policies will drive the social consequences to impact upon the prison population, and the usual alcohol, drugs, violence and crime statistics.

    And finally, the market will not improve when depended on a poor consumer class. This is exactly the same mistake made by labour under the mechanisms of the same socialist economy.

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  20. Pete George (17,596) Says:

    Second, the atheist argument is fundamentally flawed when pointing the finger at apes and monkeys while at the same time believing humans are descended from them.

    Your argument is fundamentally flawed – no one who understands evolution believes that. It is just those who don’t want to understand evolution that bring up the humans are descended from apes and monkeys thing.

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  21. Tassman (238) Says:

    Huh, P Geroge, this is a new one on me. Perhaps you could describe the process of Evolution for us once and for all…

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  22. MajorBloodnok (356) Says:

    Your argument is fundamentally flawed – no one who understands evolution believes that. It is just those who don’t want to understand evolution that bring up the humans are descended from apes and monkeys thing.

    And what is the alternative explanation from those who do understand evolution? That apes were not evolutionary forebears of homo sapiens?

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  23. F E Smith (2,521) Says:

    On topic, I got this spam in my inbox this last week:

    You may well have experienced disruption in the courts in the past three months due to industrial action by PSA members. I am writing to let you know why this action is taking place.

    Pay for Ministry of Justice staff is below that of workers doing equivalent jobs in the public service and private sector. On average Ministry pay rates are 6.3% behind the public service pay median. A large group of the Ministry’s staff, some 1200 workers, are paid nearly 10% below the public service median. The PSA believes the Ministry’s pay setting system contributes to this situation.

    The PSA has told the Ministry we recognise they are operating under tight financial constraints. We have said we would agree to a modest pay increases for PSA members this year and next year. We have also said we would work with the Ministry on improving systems and processes to enhance productivity and service delivery and that negotiation of future increases to close the pay gap would be based on productivity gains.

    We do not think the gap between the parties is that great but bridging it requires a commitment to find a mutually acceptable outcome in bargaining.

    If we are still in dispute, the PSA is planning a peaceful rally on January 18 to coincide with the Supreme Court opening. Stoppages and disruption within the Ministry will continue until we can achieve a fair and sustainable settlement.

    We have received messages of support from some lawyers and legal organisations such as the Criminal Bar Association and the Auckland District Law Society. We have also received more tangible forms of support for PSA members taking strike action. We greatly appreciate this support.

    In our effort to find a solution to this dispute, we are asking for further support.

    We are respectfully asking that you send a message to the Ministry’s chief executive, Belinda Clark, expressing concern at the current disruption and calling for best efforts towards a speedy resolution. Her email address is Belinda.Clark@justice.govt.nz A message along these lines would be very welcome.

    To express your support to PSA members, feel free to email us at JusticeForUs@psa.org.nz and we will pass on messages to them. If you require further information on the dispute re you can go to http://www.psa.org.nz or contact us by phone on 0508 367 772.
    Yours sincerely

    Brenda Pilott
    PSA National Secretary

    Needless to say I won’t be supporting them- after all, we legal aid providers got our pay cut and there was not a word of support for us from the PSA!

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  24. jackp (668) Says:

    I agree with most of you. The problem is the EPMU is the news. They will use scare tactics like poorer service in the health, lower caliber in education because of teachers salaries, etc, etc. We have all heard it before. What National has to do is stress the front line stays but the backline administrators should take a cut or some go(like about 50 percent). We will now hear on the news how terrible this government is by not giving pay raises. It’ll be all one sided, so expect it. This is a reality, folks.

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  25. Chthoniid (1,912) Says:

    The evolutionary theory of human evolution is that both apes and hominids had similar ancestors, but diverged into hominid and “non-hominid” paths long before modern humans and modern apes appeared. Hence, humans did not evolve from apes.

    The similarity of ancient ancestors is sufficient to preserve many common anatomical and behavioural similarities across both groups (tool-use, social structures, investment in care of infants).

    The evolutionary theory explains why the human body has a host of ‘design mistakes’. For instance, the appendix is a vestigial organ that marks a stage in our evolution when early hominids were entirely vegetarian. It seems unnecessarily vindictive to design a human to include an organ whose only function is to randomly get infected, burst, and inflict a painful death due to peritonitis on its host.

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