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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

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