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The increasing number of Australian companies relocating to New Zealand has caused concern that they are taking advantage of the lower wages and unregulated labour market, according to MP Darien Fenton. The Labour Party Spokeswoman has expressed concern that employers from Australia are making money on the backs of people whose jobs are primarily casual or temporary.
Following the recent opening of a new CallActive call centre in Wellington, the chief executive Rick Allan confirmed that one of the biggest attractions for Australian companies was that operating costs for companies are 20-30% cheaper; as a direct result of cheaper rent, wages, and superannuation.
Steven Joyce, the National Party’s Economic Development Minister, said that the wage gap with Australia is an opportunity to create more jobs in New Zealand. The Council of Trade Unions, however, has expressed concern that an economy created on low paid jobs lowers productivity, which could actually widen the pay gap even further, according to Radio New Zealand.
The immigration trend has reversed in recent months with increasing numbers of Australians relocating to New Zealand in search of work. The latest unemployment figure for New Zealand was 6.2%, for Q1 ending March 2013. Compared with the same period last year, unemployment fell -0.5%.