Update: Fonterra to open a processing plant in Indonesia. While still using New Zealand ingredients it will no doubt use cheap local labour to do the work and I have no doubt that they will produce for the NZ market too, culling the need for more expensive NZ workers.
John Key won the 2008 election on the premiss that he would bring NZ wages closer to Aussie wages and keep Kiwi’s here because life would be better.
Today the news reached us that the process has started. Aussie bosses are bringing production jobs over here. Why because they can pay lower wages and have less rules to content with.
Way to go NZ. While it will create (low paying) jobs over here short term they will disappear overnight again when wages are going down in Oz or they can find an even cheaper workforce. We have now officially joined the race to the bottom with the 1% winning again.