New Minister needs to focus on what is important
SOME I N POLITICS ARE BEGINNING TO consider the job of Transport Minister as a bit of a poisoned chalice. However, RTF’s Nick Leggett believes newly sworn-in Minister of Transport Michael Wood has an opportunity to make a positive difference to New Zealand’s future, if he can stick to initiatives that focus on growing the economy.
“The difficulty for the new Minister is a growing tension within the Government and its supporters over the desire to be ‘transformational’ versus the reality of having to manage NZ through its economic recovery and build the infrastructure necessary to support our economy through the 21st Century,” says Leggett.
Ironically, it is actually in Michael Wood’s other portfolio, as Workplace Relations and Safety Minister, where he may have the greatest impact on commercial road transport operators. The concern is that a number of Labour Party workplace relations policies, if implemented, could add significant costs to operators and act as a drag on the economy.
First cab off the rank is the union movement’s desire to change the rules around contracting relationships.
“Owner-operators represent 65% of transport service licence holders in road freight and are fundamental to the f lexibility and adaptability of the industry,” Leggett says.
“A change to this status quo has the potential to totally up-end the commercial equilibrium, with consequences not only for the cost of freight but also in terms of the workforce available to move it around.”
The Government has also stated an aim to increase the minimum wage to $20 per hour by April 1, with a view to getting it up to the ‘ living wage’, currently $22.10 per hour. Again, this will add significant cost to our industry, argues Leggett.
“As we stated in our briefing to the incoming Minister, there needs to be reconsideration of this policy – given the economic hit from COVID19, particularly to small and medium-sized businesses.”
RTF also sees the looming spectre of Fair Pay Agreements (national awards, or centralised wage-f ixing by another name) as another labour reform hanging over the industry.
“We are strongly opposed to any form of centralised wage-f i xing or any other forms of labour market regulation that pre-sets the renumeration and work conditions of professional drivers,” says Leggett.
“An industry-wide Fair Pay Agreement risks distorting the transport sector and creating undesirable outcomes that may have a signif icant effect on our workforce, particularly in regional NZ.
“Advice RTF has received is that Fair Pay Agreements will be complex and slow to negotiate and add significantly to domestic freight costs, cutting into the margins of our exporters.”
RTF hopes that when it comes to the transport portfolio Minister Wood will take a more pragmatic approach: “In a time of economic uncertaint y ; major supply chain i ssues, multi- -billion-dollar infrastructure def icits and diff icult environmental challenges are pressing transport issues that NZers need to see solved.
“Now more than ever, our economy needs a government that is focused on making the waka go faster. We just cannot afford ministers getting distracted by peripheral issues that will divert attention from what really matters for the vast majority of NZers.”
RTF’s briefing to the incoming Minister of Transport is available on the Road Transport Forum’s website.
T&D