Labour’s policy to block small businesses from Government tenders

August 7th, 2014 at 2:00 pm by David Farrar

A reader e-mails:

’s small business policy promises to significantly increase the proportion of government undertaken by small business.  This is good, but….

Labours Work and Wages policy will “ensure that government bodies only contract with businesses that are good employers including a history of adhering to employment legislation, and respecting the right of their employees to join a union and bargain collectively.”

Labour will also “seek to use the purchasing power of the state to create incentives for private sector employers who can become certified Living Wage employers.”

Small businesses will not be exempt from the good employer requirements, unless Labour proposes to backtrack on its Work and Wages Policy.  Most small businesses are not unionised.  Does this mean they will need to unionise to get a look in?  Will they have to pay $18.40 or more to their employees before they get a look in?

Labour’s policy does seem to be that the Government should discriminate against employers who do not unionised workplaces, which will mean almost all small businesses.

This is a very self serving policy. Almost all business policies of Labour’s are about forcing or incentivising more people to join . in turn then use their extra money to help Labour get elected, in four ways:

  1. Some unions join Labour and get to vote on their leader, candidates and policies
  2. Some unions donate directly to Labour
  3. Almost all unions allow their staff to spend as much time as they want campaigning for Labour on work time
  4. Many unions run third party campaigns on issues, designed to help Labour get elected

So while one of Labour’s policies say they want more small businesses winning tenders, the small print is only if they have unionised workforces, to help fund the Labour Party.

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17 Responses to “Labour’s policy to block small businesses from Government tenders”

  1. Rich Prick (1,750 comments) says:

    Well that’s the union demographic vote in the bag then. That should lift Labour’s polling by about 0%.

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  2. alloytoo (582 comments) says:

    But but, what if those people (who still have jobs) don’t want to be unionized?

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  3. ObligatoryMarxist (37 comments) says:

    So “Respecting the right of workers to unionize” is too much for small businesses?

    Though I’d -hope- that the “incentives” for employers to pay the living wage is factoring that into their contracts – especially in the health sector. The problem with wanting government contractors to pay the living wage is that their income comes from the government – who often don’t want to increase how much they spend on said contract.

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  4. Nigel Kearney (1,096 comments) says:

    They probably didn’t want to take their staff for coffee at Mark Peck’s cafe anyway.

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  5. peterwn (3,333 comments) says:

    And Labour wants a Royal Commission into corruption. Looks like the Commission would have one task for starters.
    Has Labour still got a policy of selective research grants – the way the ‘policy’ was stated previously, grants would be selectively given – reading between the lines – on the advice of unions.

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  6. slightlyrighty (2,096 comments) says:

    So Labour only want to provide government work to workers who agree with them politically?

    Seriously? Smells like corruption to me.

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  7. freedom101 (513 comments) says:

    Nowhere is the saying “What the bold print giveth, the fine print taketh away” more apt than when reading Labour party policies.

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  8. OneTrack (3,350 comments) says:

    “But but, what if those people (who still have jobs) don’t want to be unionized?”

    Who cares what the peons think. Onward Comrades, for the cause.

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  9. OneTrack (3,350 comments) says:

    “3.Almost all unions allow their staff to spend as much time as they want campaigning for Labour on work time”

    Nah, you are now thinking of TVNZ.

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  10. OneTrack (3,350 comments) says:

    Well the unions bought their man in Labour, so they want a return on their investment. And the additional fees they get means they can then cover the “donations” they made. They call that a win-win.

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  11. OneTrack (3,350 comments) says:

    What about the poor sucker(s) who comes to the party, unionises his workforce and pays them the “Living Wage(tm)”, but then doesn’t get a government contract? Their costs are now too high so they can’t compete with other small businesses and fail.

    Never mind, Labour/Green/Mana/HitlerYouth will be putting the dole up to the same level as the Living Wage (well that would be “fair” wouldn’t it ), so no problem.

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  12. Mark (1,502 comments) says:

    Both National and Labour give lip service every three years to reducing compliance costs and making life easier for small business owners and the self employed. The reality is that successive labour and national governments have lied through their teeth and dont give a fuck about small business.

    The reality of the situation as we get on with it, meet their ever inclreasing compliance budens and treat both groups promises with the Yeah Right! response they deserve. And in this area National are no better or worse than labour

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  13. polemic (460 comments) says:

    the Dear Leader has to remain in control of his subjects so they re-elect him.

    The Union continues to pillage the very workers who are trying to get ahead and keep free of a relic that never helped them anyway. Sorry except for Stevedores and Railway workers …..

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  14. thor42 (971 comments) says:

    “Labour – thinking things through since……………………………. yeah, nah…..”

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  15. burt (7,424 comments) says:

    It’s always about the unions isn’t it. Never about the workers.

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  16. ross411 (902 comments) says:

    burt (7,872 comments) says:
    August 7th, 2014 at 4:26 pm
    It’s always about the unions isn’t it. Never about the workers.

    I’d be interested to see how much the top union mucky-mucks pay themselves. Not that anyone would ever have a chance of finding out.

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  17. 2boyz (273 comments) says:

    The way MBIE currently operates in tender situation, biggest is best. Small business don’t appear to get a look in now, hard to see anything changing if Labour was running the show ( can’t see it myself).

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