trade aid

In response to my post on global white band day, iiq responded that people can,

Help to make a difference to poverty from lack of free trade and choices.

Agreed.

The distinction between free trade and fair trade is important when considering third world countries. People trade and nations trade - rather, all people and all nations trade in different ways and at differing levels of status. Googling Fair Trade will get heaps of info on the minutiae I'm sure - but IMHO, China's the problem.

The astonishingly low prices that an item can be made for in China is just nuts (take the NZ price, divide it by 8 and that's the cost in US dollars to get it made, packaged AND to a port of your choice in China). Global trade has to be about open access (USA and EU not doing very well) and reasonable prices paid for goods. The price of Chinese goods is, simply, too low. The single biggest action any government can take to make fair trade happen is for China to float the Yuan.

I suspect that, unfortunately, would cause a global financial crisis. I don't know the answer to that whopping problem.

The depressing reality is that global poverty isn't going to end in my lifetime. Prove me wrong and I'll be happy - but I'm not wrong on this one.

NGO's like Oxfam, and campaigns like Make Poverty History will make a difference - but only to some, and only slowly. It doesn't mean that individual actions should be ignored as irrelevant. It's up to consumers to make change happen slowly with their wallets. It's hard to make those choices - in fact it's a bitch (Foodtown Mt Eden, in particular, should be able to keep Scarborough Fair coffee in stock more often).

exclusive nonsesnse

What I don't get about the the Exclusive Brethren's exemption to labour laws is this:

If you run a business in New Zealand, it's safe to assume that you're going to have contact with people who you disagree with politically and religiously. Some of your employees and contractors will hold different beliefs, the employees of your suppliers are bound to be of different faiths - especially if you source raw materials offshore (i.e. China) - AND they're going to change as people leave. Customers in particular - regardless of whether you are a wholesaler or retailer - are going to be varied to a very strong degree.

So it's fine for the Church to insist that it's members not associate with outsiders, that they lobby (to outsiders) for laws allow for them to be treated above the law, but if they need to make money, all that doesn't matter. Preventing your followers from accessing modern civilisation while engaging in capitalist behaviour for the benefit of the Church is on par with with the plight of North Korea's citizens and the indulgences of Kim Jong-il.

I don't believe that the EB's pleas to get Union officials off their workplaces is about remaining separated from others. Sue Bradford quoted someone from the EB in her speech in favour of the law (Hat tip: RB):

Separation is maintained from all groups, unions or associations of a business, shareholding, property, political, pleasure, social, medical, or superannuational (sic) nature. We have found in Jesus a satisfaction nothing in this passing world can compare with. Additionally, we are also governed by the scriptures as to employing or being employed. There is special concern to maintain inviolate the direct employer to employee relationship.

Which is to say: our employee's aren't allowed to join unions, which of course would be illegal even for the EB. But for employees of small and medium businesses, it's extremely difficult to join a union. Mostly because unions don't have the resource to bargain collective agreements for a handfull of employees - compare Progressive stores (one company, unions are involved) to Foodstuffs stores (many owner operated companies, little union involvement) .

The EB isn't an organisation that has the betterment of it's members at it's core (see RB again), it's an organisation devoted to power, money and control of it's members. They're not in the politics game to protect their right to practice their religion. They're in it to advance their cult.

Section 24 of the ERA needs to be repealed - not becuase Labour wants to hit back at the EB - but because no group should be exempt from the law because of their beleifs.

a few things

So I was going to post a long post, but got caught up transferring to blogger in beta, and only have a few moments before leaving for work. Don't know if it's any good yet, but I'm sure I'll know soon enough.

I did discover that there were comments waiting for moderation that I didn't know about - so I'm not rude - just didn't realise that my settings were wrong (you can now comment without me having to moderate)

In good news, the shop floor workers at Prog's seem to have a decent deal on the table, but the distribution workers remain locked out.

I wasn't impressed by this fuss, but I have to say it was a mistake for Brash to announce that he was having time off. Leaders can't hide in times of crisis, no matter how unfair the crisis is in the first place.

And Brian Rudman is changing his tune about the mega city concept.

battle wages on for distribution workers

It's been 11 days since industrial action between Progressive Enterprises their distribution workers started. 11 days without pay, 11 days with no end in sight.

And people are starting to notice their supermarket shelves are starting to empty, which is seeming to be a justifiable hassle rather than massive disruption. For now. It's likely that shoppers tensions will become higher as it becomes impossible to shop at Progs stores. Who shoppers blame in the long run will make or break the worker's demands for a national collective agreement, increased entitlements and an 8% pay rise.

Progressive for it's part is trying to focus attention on what it desribes as

unreasonable union demands [and remaining] committed to the lowest prices possible

in posters throughout the store. The NDU claims that Progs is leading a war of misinformation and acting illegally by replacing the function of their members by getting suppliers that usually deliver their goods via the DC to deliver direct into store. The union received a setback this afternoon, with Employment Court Judge Colgan ruling that PEL can continue with direct to store deliveries until a hearing next week. A press release from the worker's unions the NDU and EMPU this afternoon said:

"The judgment confirms the basic principle of the section that people can not be engaged to do the work of the locked out workers," [NDU National Secretary Laila Harre] said. "The Judge has acknowledged that evidence establishing who engaged who would be difficult for unions to gather in these circumstances. However he commented that with documentary disclosure before the trial the facts will be able to be established with a greater degree of certainty... This employer does not want to negotiate a solution, it wants to win. It wants to win by forcing these workers to accept its demands through the brutal economic weapon of the lockout. The company's Australasian owners are powerful and have shown that they are prepared to invest heavily to get their way. It's time for the rest of us to show that we support the right of low paid workers to bargain and we can do that by making sure their rent is paid and their families are fed."

The union will launch an 0900 number "0900 LOCK OUT" (0900 5625 688) tomorrow morning to enable members of the public to make donations.

It looks like both the union movement is digging it's heels in too. Tony Milne has claim's that Progressive is offering 3%, and a reduction in entitlements, which (as he points out) isn't really a pay rise at all. Worse still, the Manawatu Standard has report's of non union workers being offered a pay raise, while Progressive Enterprises Managing Director claiming on Checkpoint that at least 30 union members have quit the NDU and returned to work on individual contracts, with Harre disputing the figure - only 20 workers crossed the picket line in Palmerston North, returning to work because of financial hardship.

This report cites a Prog's insider in saying that sales were only down 5%, and stock levels down 6%. So I guess there's still plenty of stuff you don't want to buy there.

No Right Turn has ways to punish Prog's, and help the union workers (possibly made redundant by the 0900 number above)

Speaking of misinformation, just to make the whole thing even more confusing the New Zealand Herald is trying it's best to get things wrong. Today:

Foodstuffs managing director Tony McNeil said there had been a slight increase in custom at the group's supermarkets, which include New World and Foodtown.

and yesterday:

A shortage of Coca-Cola and other soft drinks

Even though Coca-Cola has always delivered their soft drinks directly into store. That one ain't the fault of the locked out workers.

pictures from the picket line

Auckland's Burning has some great pictures (more in other posts too) from the picket line of Progressive Enterprises distribution workers lock out.

company blames underpaid workforce for large profit

The sight today at the local Foodtown was one of hundreds of white tickets peppering the aisles reading,

We're sorry your favourite product is out of stock.

Why? According to the full page ad taken by Progressive Enterprises Ltd in today's Herald,

PEL is suspending grocery distribution centre operations indefinitely to ensure the continued supply of grocery products to customers of Foodtown, Woolworths and Countdown supermarkets ... Industrial action at our distribution center's prevents us from supplying our stores with grocery goods via these center's.

Progressive claims that the Union demand for a single agreement for the distribution centre (DC) workers across the Christchurch, Palmerston North and Auckland DC's and an 8% pay rise will bring the multi-billion company to its knees. 500 employees want to be paid the same rate for the same job. 500 out of 18000 NZ employees will make or break this country's food supply.

Progressive's PR offensive continues to say

PEL is seeking urgent mediation to find a fast resolution and to ensure the union demands for less than three per cent of our staff don't threaten the job security of our entire18,000-plus workforce. We are always prepared to negotiate but not until striking staff return to work.

Which is a bit disingenuous. Urgent mediation and negotiation are usually things that happen immediately before strike action is called, not after. Certainly not after suspending staff for taking industrial action, locking out staff, demanding they return to work without changes to their employment conditions.

The union, the National Distribution Workers Union, responded to the newspaper ad with the following:

Progressive rehired the redundant workers on the lower pay (up to $3 less) and conditions (i.e. ending almost all allowances) of the Progressive Shands Rd Supply Chain and ended the Woolworths National Collective Agreement. Workers at Palmerston North retained the pay and allowances of the original national agreement as the company could not find another location for a new distribution centre and therefore could not legally rehire workers on lower
rates.

All this amongst a fantastic corporate (PDF) result for both PEL and its Australian owner Woolworths Australia Limited. The New Zealand operations reported $2.93 billion sales, reported EBIT of $122 million, sales increase of 3.5% in Q3 and 3.8% in Q4. Food inflation was significantly less at 1.5-2%.

The striking workers aren't getting paid at the moment. Donations can be made to the National Distribution Union at the BNZ account 02-0200-0217968-00 with the reference "Lock Out" to give them a hand.

Kiwi Herald also reports on the issue.

out of food

Foodtown Mt Eden had quite bare shelves when I popped in yesterday evening. My immediate thoughts were of slack management, or a high number of sickies. Unfortunately I was wrong.

Progressive Enterprises, the people who bring grocery items to half the country through the Foodtown, Countdown and Woolworth's brands, have locked out their striking distribution workers . Mt Eden store is particularly noticeable, because of it's small storeroom, it requires multiple deliveries of dry goods every day. Other supermarket's will be feeling the pinch soon, as groceries continue to sell and DC's fail to keep up with demand with their union workforce unable to return to work.

The dispute itself is over national pay rates - the union contesting that workers throughout the country should be paid the same for the same job. Prog's, presumably, pays their non-Auckland workers less, because the market pay is less. Working in Auckland is more expensive for two reasons:
- Cost of travel, further to go in most cases.
- Progressive Enterprises prices by region, essentially making Central Auckland the most expensive place to buy groceries in the country.

But that doesn't mean that Palmerston North worker's don't have to travel or buy food.

[Update: I presumed wrong, see next post]

Whatever the result, in the meantime, expect empty supermarket shelves and a PR disaster for Progs.

buy nz made - before it's all gone

I had a chance to speak to a local manufacturer today who sells into both Australian and New Zealand supermarket chains. His experience of late has confirmed what many had fared about the buyout of Progressive Enterprises by Woolworths Australia - that NZ based suppliers are fucked. In an environment where the price grocery retailers pay for their goods have remained relatively static, suppliers here are now forced to match terms with Australian products or lose access to supermarket shelves. In theory, there's opportunity for NZ suppliers to gain access to Australia, but the reality is that the margins they get from NZ supermarkets is low, and a lack of cashflow for the smaller suppliers to invest in equipment to be able to ramp their output serving four million people to output serving six times that number makes quick expansion impossible. The same lack of liquidity prevents manufacturers from acquiring horizontally - meaning business that are in trouble simply disappear, rather than being bought by another NZ operation.

All the while, the Woolworth's Australia has made a very nice profit, reporting in the latest half year that
- EBIT was up by 31.5% to $A902.4 million.
- Supermarket (Oz&NZ) sales up $A2.4 billion to $A16 billion.
- NZ Supermarket sales up 4.3%
- Food inflation was 1.5-2%

The cost of doing business was also down (read: squeezing suppliers), with

80% of these cost savings were reinvested in gross margin with the balance going to increase EBIT margin.

(PDF here)

So we - the consumer - is left with little choice in what we buy, even if we are swayed by the Green's Buy NZ Made Campaign. It's starting already - you may have noticed your favorite Basics product replaced with the Oz made home brand. Little wonder we're flocking to Australia, pretty soon we'll be left without any food.

shopping nightmare

I've decided to stay well away from Sylvia Park this weekend - preferring hell to be involved chaos similar to Thursday's opening. Picked up a few stories from people working there on the day, including hair pulling, fisticuffs and people stealing hot deals from other customer's trolleys. And that was all before the $49 TV's sold out 7 minutes after opening the doors. Even more bizarre than Nat MP Maurice Williamson blaming the traffic chaos on Labour, was a very senior Progressive Enterprises (Owner of Foodtown) employee vandalising a display in the front of the Warehouse and having to be calmed down by Warehouse founder Steven Tindall. Foodtown, apparently, wasn't doing very well during the morning in comparison to the Warehouse.

Who's got the biggest box?

Very big-box retail weekend. Saw Botany Downs, got scared. Left. Ventured, out of necessicity into The Warehouse, Farmers, Briscoes and Arbuckles, all in the quest for a blanket to enjoy long winters nights in front of TV. I didn't want a throw. I didn't want something that would grate against my skin. I most certainly didn't want everything in pastel or loafer-tan colours. Erugh.

I just wanted a bloody blanket.

To cap it all off, all the above source from the same suppliers. Same colours, same designs, just different packaging. All ugly ugly ugly. Looks like two suppliers dominate the NZ manchester scene. (In its defence, The Warehouse did have some nice throws, but lost points for pushing hideous snuggle sacks). It took the global giant, K-Mart (Categories managed out of Oz) to prodivde something unique and interesting in the NZ retail blanket scene. A different choice.

If you driven on the southern past Mt Wellington in the past year, you'll have seen the newest big box rising. Well, more a collection of them. Sylvia Park will be mamoth. Just huge. The fact it's opening in stages will give you that. The fact there will be three players desperate for your weekly grocery shop (Progs, Foodies and -if you havn't heard, where have you been - The Warehouse.

But if you're looking for hope to find something unique and interesting - like a blanket- you won't. It'll be the same thing, really. These blokes have signed up. So have these. A few new aussie retailers are all over it, including Howard's Storage World and Secrets, the diamond-in-a-lab company (also opening in Newmarket). And despite being a construction site still, the carparks are already: a. in the plural, b. large and c. full.

But look down the aisles at these stores. Match them up. Same old stuff. Foodtown will certainly have the best food offer, but it wont be different to Greenlane Foodtown. Dollars though volume. Foodstuffs teaming up with Metcash, Progressive's recent supplier stouch, twisting the arms of suppliers on both sides of the tasman, will mean less choice for the consumer. A jetset marketing adviser told The Sydney Morning Herald that

"My experience of this happening in the UK is there's very little manufacturers can do but roll over. It's standard operating procedure for retailers. The first thing they do is look at the price book of the company they've acquired and drive down prices. When Wal-Mart took over ASDA in the UK, the instructions were to do exactly that."

He went on to say,

"Sympathetic to the plight of small manufacturers" but they would disappear in the Woolworth's takeover of Progressive [and that]"Inevitably a lot of small manufacturers will fall by the wayside."

Much the same point, less callously told, from Rod Oram in the Sunday Star Times.

But, until we see what the lastest oversized ticky-tacky will bring, I now can enjoy those winter nights, in front of the box, warm and comfy with my blanket.