FP Layoffs result of free market policies, corporate globalization

Alliance Party media release
FOR IMMEDIATE RELEASE
Thursday 26 April 2007

The Alliance Party says the layoff of 350 workers at Fisher and Paykel is a result of free market policies and corporate globalization.

Alliance Party President Victor Billot says the Fisher and Paykel plant closure shows the future of globalization for New Zealand workers and had to be resisted.

He says the situation required two responses.

In the short term, a manufacturing policy had to be introduced that stopped the bleed of skills and jobs to low wage economies, which had to include tariff and other support for producers, and disincentives for outsourcing and relocating corporates.

In the longer term, New Zealand must move away from free market capitalist economic policies, and start organizing its economy on the basis of the needs and requirements of people as opposed to profits of multinational companies.

"This could be spearheaded by public ownership, and measures to introduce democratic or co-operative enterprises with public support."

He says that workers are just being shunted aside for the sake of profits.

"Simply put the workers create the wealth, yet the private shareholders have the control, and they will go wherever they can find the lowest wages and conditions, regardless of the effect on human beings."

Mr Billot says the situation will accelerate in future with any economic downturn and shows just how vulnerable the New Zealand economy is.

He says the impact of the closure on workers will be great and industrial tactics may be an option to stop the closure.

"If there is a concerted campaign by workers, who place pressure on the company and consider community boycotts and stoppages, it could reverse the decision."

"This closure will reduce local industrial capacity, it will continue to destroy the skill base, and it will continue to depress wages and conditions for workers in New Zealand."

He says the result will be a lot of insecure, casualized workers who will be in a very tough position.

Mr Billot says he hopes Unions representing the workers hold the Government to account and take an aggressive stand.

He says that the whole basis of the high wage, high productivity strategy pursued by key Unions relied on high-tech companies with skilled workforces who were now vanishing from the New Zealand economy – which indicated it might be time for a rethink of the strategy.

"They need to start going in to bat for their members while they still have some."

He says coming on the heels of outsourcing at Air New Zealand the closure showed how so-called "Kiwi" companies were just the same as any global multinational.

"Major industrial players are just getting up and leaving. Sadly the loyalty factor with these companies is to the profit, not with their workers or any country."

ENDS

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