Australian jobs on the move to NZ

[Torpedo]

...For every jobs moved to NZ, Australia may be getting a bottle of Manuka
honey for free. It's just un-Australian to move jobs to non-White,
culturally incompatible Asian countries!!

http://www.smh.com.au/business/australian-jobs-on-the-move-to-nz-20120417-1x5jv.html#ixzz1sKIGG1I7

Australian jobs on the move to NZ

Madeleine Heffernan
April 18, 2012

HUNDREDS of Australian jobs have been shifted to New Zealand as local
producers try to avoid the impact of high wages, a soaring Australian dollar
and restrictive labour laws.

Woolworths is the latest to transfer jobs across the Tasman. It transferred
40 contact centre jobs to Auckland this week. Imperial Tobacco has also
announced it will move cigarette manufacturing from Sydney to New Zealand.

The companies are following in the footsteps of the food production
industry, which has been shifting jobs out of Australia to take advantage of
New Zealand's lower wages.

Heinz Australia recently scrapped more than 300 jobs across three states in
favour of its large plant in Hastings, New Zealand's largest food processing
and food producing centre.

The International Labour Organisation says Australian manufacturing workers
earned more than $US35 an hour in 2008. In New Zealand the rate is under
$US20 an hour.

Average weekly earnings for manufacturing workers in Australia are higher
than those in Canada, Britain, New Zealand and the United States, says a
study which put Australian earnings at more than $1000 a week, versus about
$700 in NZ.

Simplot Australia is the last remaining vegetable processor in Tasmania
after its rival McCain shifted production to New Zealand in 2010, citing a
better return on investment.

Callum Elder, the executive general manager of quality and innovation at
Simplot, said penalty rates and wage inflation make Australian processing
much more expensive.

''Penalty rates are a significant cost difference to manufacturers,
particularly in the agricultural game where you're unable to properly
plan,'' Mr Elder said.

This has combined with wage rises that are not matched with productivity
improvements, and instead stoked by high salaries in the mining sector and
infrastructure projects, he said.

''Our productivity hasn't increased in the past three to four years, as an
industry, but yet we've been paying 3 to 4 per cent increases [in wages],
which is a large part of the cost. It's very expensive to put people into
Australian factories.''

Mr Elder said base pay of $60,000 a year can leap to $100,000 when overtime,
payroll and other costs are included. ''The average base salary is probably
around $60,000 and there's probably another $20,000 in penalty rates, and
the rest comes from surcharges and taxes.''

High wages, penalty rates and productivity of Australian workers has come
under attack in recent

months. Toyota Australia's chief executive, Max Yasuda, has criticised the
culture of his workforce at Altona, Melbourne, where he said absenteeism can
be as high as 30 per cent.

Earlier this year the New Zealand Finance Minister, Bill English, told
BusinessDay his country was benefiting from a more flexible industrial
relations environment, a lack of infrastructure bottlenecks and stable
energy prices.

''The IR environment is pretty flexible and has enabled quite a lot of
flexibility to our manufacturing sector, which has in the last while been
growing, despite the high dollar,'' he said.

The mayor of Hastings, Lawrence Yule, believed New Zealand's ''more holistic
view on employment'' appeals to Australian companies.

He cited New Zealand's lower levels of unionisation, ability to operate
outside traditional daytime hours, and greater use of seasonal employees.
''Our labour laws are more relaxed, as I'm told,'' he said. ''I've been
advised that's part of the mix.''

Peter Burn, director of public policy at the Australian Industry Group, said
New Zealand has not followed Australia in ''tightening'' industrial
relations settings, and labour laws could prove to be ''the straw that
breaks the camel's back'' for some firms. ''Labour laws in themselves aren't
going to be the 'knock them down' difference, but could make a difference at
the margins.''

Agrifood consultant David McKinna said penalty rates during peak times were
putting pressure on the sector. ''If you take the cost of labour, it can run
anything up to $50 an hour, whereas in New Zealand it's probably $20," said
Dr McKinna, principal at strategic business consultancy McKinna et al.

Jessica Ramsden, spokeswoman for HJ Heinz Co Australia, said the now-closed
plant in Girgarre, Victoria, was small by global standards, and the
investment to make it competitive was too great. Differences in labour
conditions between the two countries did not affect the company's decision.

Jason Hefford, from the Australian Manufacturing Workers Union, said shifts
to New Zealand were a concern, but pointed to the high dollar and health and
safety obligations over the high wages.

with Ruth Williams

[DonH]

"Torpedo" <gu...@unknown.com> wrote in message
news:jmkfg8$is2$1...@speranza.aioe.org...

# Yes, in a world economy, local bosses who move jobs offshore aren't seen
as "traitors" but merely good global citizens, doing what is best for their
company - until, as in USA, you find the Chinese are doing all the
manufacturing you once did at home, and you have to print money.
Of course, there's always the risk that the recipient nation may decide
to raise its own workers' wages, or, that a world war might develop - and
where are you then? Bring the jobs back home, and start growing food again
(as merchant shipping is sunk by U-boats?).
If every nation grew and produced for its own needs, first and
foremost, with overseas trade as an addendum, then things might be more
rational. But capitalism knows best.