Neoliberalism & Work in Aotearoa

Key Ideas

• Neoliberalism continued despite its failures after the 2008 Global Financial Crisis (GFC)
• Economic inequality is increasing, with the rich getting richer and the poor getting poorer
• Jobs are less stable, and wages aren't keeping up with costs given how work has transformed
• A new class of workers, the precariat, has emerged with insecure jobs, low wages, and few rights
• Essential workers, such as nurses, cleaners, and food workers, were praised during COVID-19 but have bad pay and working conditions

Neoliberalism and Changing Work

• Free-market policies have taken power away from workers
• Governments have reduced worker protections, such as ending compulsory union membership
• There's a shift from secure, full-time jobs to casual, short-term contracts
• A cultural shift towards "personal responsibility" over collective rights is occurring
• Workers are forced to be "flexible" which means no job security, guaranteed hours, or stability

Impact in Aotearoa NZ

• Wages are low and stagnant for most workers, while the top 1% experience huge salary growth
• House prices and rent have skyrocketed, while wages haven't kept up
• Rent control policies were removed in 1991, worsening the housing situation
• In Waikato (2021-22), a $39,640 pay rise was needed to afford a house, but wages only increased by $1,836
• There are more part-time and temporary jobs available (e.g., Uber drivers, delivery workers)
• Zero-hour contracts provide no guarantee of work each week
• Many workers are "independent contractors" without legal worker rights
• Even university tutors work on short-term contracts with low job security

The Precariat: A New Class?

• The term describes workers in unstable, low-paid jobs
• Millions worldwide have no job security, benefits, or experience constant financial stress
• Guy Standing (2011) says the precariat are a "dangerous class"—angry, frustrated, and politically unstable

Types of Insecurity in the Precariat

• Job insecurity means no stable career or promotions
• Income insecurity means no guaranteed regular pay
• Work insecurity means long hours and unsafe conditions
• Skill insecurity means few chances to upskill
• Representation insecurity means no union protections

Who is in the Precariat in NZ?

• 1 in 6 New Zealanders over 15 years old are in the precariat
• More women (57.9%) are in the precariat than men (42.2%)
• A higher percentage of Māori & Pacific peoples are in the precariat (1 in 4 vs. 1 in 7 Pākehā)
• Younger people are affected most (34.7% aged 15-24; 19.9% aged 25-34)
• Even graduates struggle despite higher education

Precarity vs. Precariousness (Judith Butler)

• Precariousness means everyone is vulnerable to illness, injury, or economic hardship
• Precarity means some groups (e.g., low-income, women, minorities) are deliberately made more vulnerable by social and political systems

Essential Workers: A Case Study

• Essential workers have jobs that keep society running (e.g., nurses, food workers, cleaners, delivery drivers)
• During COVID-19, NZ had 529,000 essential workers
• More men than women overall were essential workers, but women did more in-person work (higher risk of COVID-19)
• 125,000 Māori and Pacific workers were essential workers
• Globally, women and minorities do most essential work but are paid poorly

Conclusion

• Capitalism undervalues care work (e.g., healthcare, cleaning, food production)
• Stockbrokers earn millions, while nurses, delivery workers, and garbage collectors keep society functioning
• "We are not essential. We are sacrificial." – NY transit worker (2020)

Final Thoughts

• Neoliberal policies have made work more insecure
• The precariat is growing, and younger generations face more instability
• Essential workers are undervalued, despite being crucial to society
• If inequality keeps rising, workers may fight back