More jobs, but not for all

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Wed, 27 Jun 2012 6:10p.m.

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Tough trading conditions and high wool prices have forced the closure of an Auckland yarn spinning factory and the loss of 70 jobs.

Tough trading conditions and high wool prices have forced the closure of an Auckland yarn spinning factory and the loss of 70 jobs.

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28/06/2012 12:31:47 p.m.

Mike wrote:

NZ has a recession. The world has a recession. The shortage of houses is a direct result of Labours RMA which strangled new housing development and Auckland needs more homes built now. If the new housing was built, that would provide more jobs, plus more demand for likes of carpet and everythig else, it would also reduce the house/rent prices some in Auckland.

So what does Reid suggest instead? Maybe union strikes costing businesses money and more closures and jobs lost? This seams to be many a union answer to everything - industrial action till have no jobs.

The profitability of Norman Ellision Carpets is too low currently. $3.5 mil just doesn't cut it for the investment. In the last NZ recession Caird Carpets was making around that profitability by itself without the rest of the Norman Ellison Group. But it was doing too well, had to be shut down.

But NZ has a history of backwards thinking. If a business does well, the others in the industry, including unions try to kill them than to change themselves.

If the NZ carpet industry we have seen about 10 major companies die. This is downsizing not closure. While they are downsizing, we are importing more capret from australia where it has a higher dollar and higher wage costs. ie NZ could do much better than we are doing and something is seriously wrong when australia with its higher dollar and wages can produce cheaper, and then ship it accross the expensive tasman cheaper than we can make in NZ!

NZ growth this last quarter was the highest in 5 years. This is near the best in the OECD currently. We could be doing a lot worse. The unions could sit down with business and see what they could do to help business, instead of treating business as an enemy till the businesses treat unions as the enemy.

Take Ports of Auckland, vs Ports of Tauranga. Both union staff, but one bunch work with the port, the other just had about a year of industrial action over sociable hours to the cost of all NZ.