by Dougal McNeill
‘We’ll need to go on strike, an ongoing strike.’ That’s how Jane Otuafi, a delegate in the Engineers’ Union, responded in March 1991 to the recently elected National government’s plan for an Employment Contracts Act. [1] ‘A general strike is the only answer,’ job delegate Sa Leutele of the Northern Distribution Union agreed. ‘I’ve had several meetings to explain to the boys that the only way we can fight is to stick together. Otherwise nobody will survive after the Bill.’ [2]
Leutele’s words were prophetic. The Employment Contracts Act, once it passed, had a devastating effect on workers’ rights and living standards in New Zealand. It dealt a body blow to the trade union movement, one from which we’ve never recovered. Union membership almost halved between 1991 and 1995, with union density going from 41.5% to 21.7%, and has staggered in the private sector ever since. Workers’ organisation and confidence – expressed in working days ‘lost’ to strike activity – has been hit harder, with historic low levels of industrial struggle through the 1990s and 2000s. ‘The ECA,’ as Brian Roper puts it, ‘effectively deunionised and casualised large sectors of the workforce.’ [3] The viciously unequal New Zealand we live in now is shaped by the legacy of the ECA: 10% of the population owning 52% of the wealth; casualization and low pay the norm across the service industries; homeless families living in cars a ‘new reality’; and racialized poverty resulting in a Māori unemployment rate twice the national average. [4] The union movement, a basic line of defence for working people, held this back. It’s no wonder, then, that National set out to destroy the unions as effective fighting tools. [Read more…]