Unions warn employers of long-term consequences if they use the ongoing crisis to reduce staff
Unions in New Zealand have warned employers against "milking" the ongoing conflict in the Middle East as employers carry out job cuts amid plunging confidence due to the crisis.
Dennis Maga, general secretary of the Workers First Union, accused employers of exploiting the fuel crisis stemming from the US-Israeli attacks on Iran to promote attacks on workers' rights.
"What we're seeing in workplaces is that employers have been emboldened by the right-wing coalition and are bargaining with austerity and wage depression in mind," Maga said in a statement on May Day.
"Workers are dealing with the existing cost of living crisis while struggling to pay their fuel bills just to get to their jobs, and employers are milking the geopolitical issues for all they're worth."
According to Maga, New Zealand would suffer in the long-term if employers used the ongoing crisis to "get rid" of workers and push for lower wages and worse employment conditions.
"The solution to the crisis and the growing exodus of workers to Australia is higher wages and better working conditions, not austerity and more government attacks on our rights at work," he added.
Maga made the remarks as nine per cent of companies in New Zealand reduced their headcount in the March quarter, according to the New Zealand Institute of Economic Research (NZIER).
The research, which was carried out shortly after the Middle East crisis erupted, further found that another five per cent of employers are planning to carry out retrenchments in the next quarter.
The reductions come as business confidence plunged to the ground, with only one per cent of firms expecting better general economic conditions over the coming months.
"The recent developments with the Strait of Hormuz shipping restrictions and fuel price surge have increased caution amongst firms, as reflected in firms' hiring and investment intentions," the NZIER report read.
