NZ economic decline

More manufacturers than ever closing down

Radio New Zealand,

30 October, 2012

More manufacturers are closing down and fewer are starting up as they appear to be struggling to survive with the high value of the New Zealand dollar.

New statistics out on Tuesday reveal that, for the sixth year in a row, the number of manufacturing firms in New Zealand has fallen.

Green Party co-leader Russel Norman says the figures from Statistics New Zealand show that the loss of manufacturing firms and jobs is a major problem.

Dr Norman says the National-led Government cannot continue to ignore the harm the high value of the dollar is doing to manufacturing.

According to Statistics New Zealand, manufacturing is still the biggest employer, employing 224,200

.

However, in the year to the end of February, the number of manufacturing firms fell by 1.8%.

Across all industries, the number of firms fell by 0.8%.

Protections for lower-paid workers at risk

Radio NZ,

30 October, 2012

Smaller businesses will be exempt from having to provide some protections to lower-paid workers under a law change proposed by the Government.

The Cabinet has signed off on changes to Part 6A of the Employment Relations Act after a review found significant operations issues around transferring workers' entitlements to new employment.

Part 6A of the act deals with cleaning, catering, orderly and laundry companies when they are sold or restructured.

At present, workers in those industries have the right to have their jobs transferred to the new business, but the Government plans to exempt small and medium-sized businesses with fewer than 20 workers.

Labour Minister Kate Wilkinson says larger companies have adapted to the requirements, but smaller businesses have faced greater proportional costs.

Ms Wilkinson says she does not expect people to lose their jobs as a result of the change.