Waikato Business News April/May 2021
Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.
Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.
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WAIKATO BUSINESS NEWS <strong>April</strong>/<strong>May</strong> <strong>2021</strong><br />
17<br />
We know that skills shortages<br />
remain a significant problem<br />
for businesses big and small.<br />
<strong>Business</strong> needs a breather<br />
and helping hand<br />
Even in what we hope is a post-COVID lock down world we know<br />
that businesses face ongoing challenges. And while there are a<br />
couple of ropes up the cliff to help you get back on top, we also<br />
know there is a lot coming that is not going to make that easy.<br />
Many of you reliant on<br />
trade with Australia<br />
would have been<br />
relieved to see the trans-Tasman<br />
bubble opening, not just<br />
for your staff personally and<br />
professionally but your<br />
customers.<br />
But unfortunately, this<br />
does not address the skilled<br />
migrant worker issue and we<br />
know that skills shortages remain<br />
a significant problem<br />
for businesses big and small.<br />
The Government is developing<br />
a new immigration policy,<br />
but we think the issue is<br />
wider than that.<br />
EMA chief executive Brett O’Riley<br />
As the EMA advocated<br />
before the last election, it is<br />
time for a much bigger piece<br />
of work - a population strategy.<br />
It is critical to many<br />
parts of the economy and<br />
New Zealand life.<br />
We need to decide how big<br />
we want our country to be as<br />
that is what drives infrastructure,<br />
housing, and health policy,<br />
and in turn means thinking<br />
about what skills we want in<br />
our population as these will<br />
determine our skills mix for<br />
immigrants, as well as our education<br />
system.<br />
Training, education, skills,<br />
and immigration are a critical<br />
policy mix for New Zealand as<br />
we have a rapidly ageing workforce<br />
(in the top three ageing<br />
populations in the world),<br />
which coupled with our declining<br />
birth rate which is now<br />
well below what is required to<br />
replenish our working population,<br />
the time is now.<br />
Along with the big picture<br />
issues like this, there are a<br />
huge number of other policy<br />
and legislative changes facing<br />
businesses.<br />
The minimum wage recently<br />
rose to $20 an hour, which is<br />
the third in a series of increases<br />
that have seen the minimum<br />
wage rise more than 25 per<br />
cent in the past three years.<br />
But is raising wages what<br />
drives the productivity which<br />
enables businesses to grow?<br />
• It is also only one piece of<br />
business-focused legislation<br />
or policy that is on the<br />
Government’s agenda, and<br />
that is it in a nutshell really.<br />
It is the cumulative effect<br />
of this and the other policy<br />
and legislative changes<br />
that have been signalled,<br />
including:<br />
• An additional five days’<br />
sick leave in <strong>2021</strong><br />
• The 2022 Matariki public<br />
holiday at an estimated<br />
cost of $400 million to<br />
businesses<br />
• Fair Pay Agreements that<br />
will create new minimum<br />
wage scales across several<br />
sectors by the end of <strong>2021</strong><br />
• Easier access to Pay Equity<br />
negotiations – creating new<br />
minimum wage thresholds<br />
across several sectors<br />
• A new Holidays Act by<br />
2023<br />
• Wider obligations from<br />
Government for its contractors<br />
to pay the Living Wage.<br />
As part of the <strong>Business</strong>NZ<br />
Network we are talking to<br />
Government about these issues<br />
regularly, providing your feedback<br />
and helping shape their<br />
response, businesses simply<br />
needs a bit of a breather.<br />
At a practical level, we are<br />
here to support our members<br />
with expert on-tap advice,<br />
advocacy, events, business<br />
services and learning, so that<br />
together we can help your<br />
business succeed. The EMA<br />
has been here for you for 135<br />
years, we are keen to hear from<br />
you and we are here to listen.<br />
Brett O’Riley<br />
EMA Chief Executive