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Observations on Neoliberalist Capitalism.
Neoliberalist capitalism is predicated on adversarial attitudes between employer and employee. Rather than viewing the workplace as a collaborative community, the neoliberal model frames labour relations as a site of zero-sum competition, where maximizing capital’s power and flexibility necessarily comes at the expense of labour’s security. In her 2023 book ‘Hijacked’ Elizabeth Anderson argues that neoliberalism has perverted the Protestant work ethic to exploit workers and enrich the one per cent. Her book was published in the same month Australian multi-millionaire Tim Gurner, an apparent neoliberalist said: “Unemployment has to jump … we need to see pain … Employees feel the employer is extremely lucky to have them … We’ve gotta kill that attitude…” This adversarial dynamic operates through several key mechanisms:
Consequently, while neoliberalism champions voluntary, mutually beneficial market exchanges, the structural reality of the system intrinsically pits the financial interests of employers against the livelihood needs of employees. Neo-liberalist capitalism has given us extreme inequality, vast accumulations of wealth in minority groups, corporates that are larger than national economies, brutal company closures imposed by offshore investors and, in addition, there are immensely wealthy corporates and investors who can exert political influence in countries where political parties rely heavily on corporate funding, and subsequently, expansive foreign policy influences have lead to geopolitical destabilising. We are also seeing high levels of employee disengagement, more widespread use of stress and depression medication and high levels of social alienation (the sense of not feeling a part of a collective goal or hopeful social vision). Socially healthy communities or individual life fulfilment are of minimal interest in neoliberalist capitalism. We do not bring people together where we have an industrial relations framework predicated on an adversarial attitude between employers and employees. We start to bring people together when employers see employees as co-partners in success. There is a growing consensus calling for the end of neoliberalism. How can this be achieved considering the entrenched power of the neoliberalist political ideology. Any political party that indicates they will be investigating a break from adversarial workplace attitudes and also breaking away from neoliberalism will receive the approval of the electorate. The electorate wants policies with heart and belief giving hope, rather than book balancing, Changing the government may see a political party that is willing to investigate a framework that is a more inclusive capitalism, that has a belief in New Zealanders working collaboratively and sees the concept termed Timacapitalism as a practical framework to achieve that goal. A management shift that sees employees as co-partners in success will realise higher productivity and more business benefits as detailed in the following link. http://www.co-operativecapitalism.com/blog-posts/benefits-of-a-co-operative-workplace-culture In conclusion, enlightened management creating a co-operative workplace culture will see higher productivity and profitability, and other social benefits as detailed in the above link. Motivated New Zealanders working collaboratively will produce more advantageous outcomes than neoliberalist attitudes or AI software licensed from American suppliers. A New Zealand Success Story In 1999 our national airline, the Air New Zealand company, was close to bankruptcy following a disastrous investment in Ansett Airlines. It was mooted that Singapore Airlines may take a 50% share of Air New Zealand as a survival strategy. The New Zealand labour government rescued the company by injecting capital and took a majority shareholding. At the end of the first year of the financial recovery John Palmer (Chairman) and his directors team decided to give an equitable distribution of $500.00 bonus for all employees. The Directors did so on multiple occasions in the following 15 years, on the latest occasion the equitable bonus was $1800.00. These uncontracted equitable bonus payments would have been a very small proportion of individuals total remuneration but the belief and trust in employees by the board reflected an attitude shift that would have been conducive to employees responding with increased motivation and engagement. Although it is impossible to measure or quantify the effects of these equitable payments on the employee’s motivation for the company, we see the outcome in the company success. The Air New Zealand board may have been tapping into their belief in New Zealanders and their characteristic of being the equal, if not surpass, any nation when they are part of a ‘teamwork’ approach or collective effort. This characteristic is demonstrated in multiple sporting endeavours, in hosting international events, in producing opening ceremonies, in national charity appeals and in community endeavours. The board may also have been aware of the findings of research on human motivation as detailed in the book ‘Drive’ by Daniel Pink which found that the most significant motivating factor was to be part of an endeavour greater than ourselves, and aiding our national airline recovery from near bankruptcy would have met that criteria. The board may simply have been motivated by their own belief in fellow New Zealanders and applying very smart management based on that, whatever the reasons, the performance of Air New Zealand as an admired international airline over those first 15 years from a relatively small domestic market against tough international competition was simply outstanding. Whatever their reasoning, it was definitely not an approach from neoliberalism ideology and it reflected their belief that New Zealanders would respond positively. When employees know that they are being treated with trust and respect, they will live up to expectations and very often exceed expectations. The co-operative collaborative culture will give higher productivity, There is a growing consensus in NZ calling for the end of neoliberalism. How can that be achieved considering the entrenched power of the neoliberalist political and financial institutions In the upcoming NZ general election any political party that signals their intention to investigate a framework that will undermine neoliberalism will attract the attention and approval of voters. They will be tapping into this rising anti-neoliberalist consensus and will reap the benefits with the electorate. In an increasingly uncertain unstable world, largely created by neoliberalist attitudes with expansive foreign policy objectives, the time is right to challenge the status quo, a NZ government could provide a lead with a concept that has universal application, will undermine neoliberalism and that will reassert our humanity and lead into a new multipolar world order. We need enlightened and bold politicians to challenge the status quo, believe in New Zealanders responding positively, support concepts such as Timacapitalism and start the demise of neoliberalism. The initiative of the Air New Zealand Board to create an inclusive collaborative culture amongst employees can be seen as an inflection point in the evolution of capitalism that can transition us away from neoliberalism. The success of the management initiative by the board of Air New Zealand in 2000 has given rise to the development of the Timacapitalism concept. Timacapitalism is a surprisingly simple minor refinement to capitalism that will give improved productivity, more profits, more employee loyalty, more engaged synergetic employees and easier management. The concept still supports the positive aspect of capitalism allowing for entrepreneurial activity and wealth creation. Additionally, the potential for universal application, gives a vision of a better world that brings people together and reasserts our humanity. If Timacapitalism became part of ‘the NZ Way’, it would be New Zealand employees contributing to a more robust economy and creating more social cohesion. Timacapitalism is capitalism with a heart and taps into people power. A quote from Albert Einstein is pertinent ‘That times of uncertainty or crisis are prime for new initiatives. It is a policy initiative that will bring people together with a hopeful vision and builds on New Zealanders strengths. Timacapitalism - Overview This is a time for humanity to counter the negative outcomes of neoliberalism and bring people together with a hopeful vision. New Zealand’s most valuable asset will not be AI software licensed from major American corporates. New Zealand’s most valuable asset will be New Zealanders taking control and reasserting our humanity. Non-profit endeavours can utilise this framework by having criteria other than increased profit for measuring success e.g. meeting or surpassing budget goals, meeting or surpassing service goals, expanding the customer base, growing the business, contributing to community endeavours, employing disabled personnel, contributing to natural disaster recovery, reducing health budgets. We simply have to address this current world demise and reassert our humanity. We need the courage to act on principle and stand for our country to support an initiative that undermines the neoliberalist hegemony. Is there any New Zealand political party or two that have the courage and vision to consign neoliberalism to history, get back to bringing people together and reassert our humanity? That party will be admired by an electorate desperate to see politicians with more heart, vision and hope. We have to change to a multipolar world and get away from the American led geopolitical hegemony. What is the most valuable thing in the world ‘He Tangata, he tangata, he tangata’ it is the people, it is the people, it is the people. An eight year comparative study of co-operative culture workplaces against conventional workplaces found average profit improvement of 23% and average investor improved returns of 72%. I have never doubted that NZ politicians would consider that New Zealand’s most valuable asset is New Zealanders. That being so, it makes darned good sense that a government would support a concept that builds on New Zealanders national characteristic and maximises the benefit of our most valuable asset, New Zealanders. There is an incredibly simple concept for any workplace of three employees or more giving us a more people centric capitalism and a pathway from neoliberalism. The Timacapitalism Framework The Timacapitalism concept is intended to bring all employees together in a co-operative culture with the purpose of achieving enterprise success. All employees from the C.E.O. down qualify for, and benefit from, the timacapitalism concept in an open transparent way. It is the transparency of qualification and benefit that builds trust and teamwork, and creates a talking point throughout the enterprise. The concept is relatively simple but the power is in the intent, the intent that management now sees employees as co-partners in success and not as an asset brought together to earn a dividend for external capital, an employee partnership, as distinct from shareholders or investor partnership. There are four levels of timacapitalism units determined by loyalty and service:- After one year of employment an employee attains level one timacapitalism qualifying Unit. After two years of employment an employee attains two Timacapitalisml qualifying Units. After four years of employment an employee attains three Timacapitalism qualifying Units. After six years of employment an employee attains the maximum level of four Timacapitalism qualifying Units. The important differing aspect of a Timacapitalism payment is that it is not an individual performance bonus; it is a co-operative culture common bond – the cement that binds the co-operative team together. Employees are respected as co-partners in success and all employees participate in the benefits of success at this level in an equitable manner. In these co-operative workplaces performance related remuneration will be reflected in an employee’s contracted or baseline remuneration although the possibility of some employees being on performance bonuses (e.g. sales targets being met) can coexist with Timacapitalism. The remuneration forthcoming from timacapitalism payments is a relatively small proportion of total remuneration but the power is in the intent, the intent that management now sees employees as co-partners in success, and the trust and respect of management will realise the collaborative response from employees. Management now has the role of maintaining the new synergy. Of course, the starting point for any discussion of motivation in the workplace is that people have to earn a living. Your salaries, contract payments, and benefits are what we call baseline remuneration. If someone’s baseline rewards are not adequate or equitable, their focus will be on the unfairness of their situation and the anxiety of their circumstance undermining their motivation. Remuneration for qualifications, responsibilities, seniority and performance are already in place in baseline remuneration and additionally all employees will now qualify for the Timacapitalism payments following a successful year for the company. This transparency of qualification and transparency of payment benefits for all employees at this one level of the remuneration package, creates a culture where Timacapitalism payment prospects become a talking point throughout an enterprise from CEO to shop floor, and a real sense of being a ‘part of’ the co-operative team for enterprise success. Management envisages at this stage a guideline objective of from $400.00 to $1,500.00 for each qualifying timacapitalism qualifying unit depending on company performance. These timacapitalism payment amounts may be exceeded dependant on company performance with the proviso that no employee’s total timacapitalism payments can exceed 20% of total remuneration. The 20% ceiling on timacapitalism payments may be applied in the following theoretical example. Considering if each qualifying timacapitalism payment was in the order of $1500 and an employee was on the maximum of four qualifying units, the proviso that total timacapitalism payments cannot exceed 20% of total remuneration may limit the amount of timacapitalism payment received by lower paid employees. The intention is not to penalise those employees but rather that they gain greater skills and take on more responsibility to increase their base salary to gain the maximum available timacapitalism payment amount. It therefore creates an aspiration to self-achieve (a tenet of capitalism). One of the objectives of the timacapitalism concept is that payments will be recorded separately from PAYE remuneration on IRD tax returns and that an enlightened government will agree to have a tax level on these payments considerably lower than PAYE rates for all recipients regardless of current PAYE tax level. In this way government will be encouraging co-operative teamwork cultures in workplaces. The transition to full timacapitalism over several years will see improved productivity and profits and therefore no loss of tax revenue. An enlightened government could encourage adoption of the framework by allowing for a marginally lower company tax rate. The timacapitalism concept has universal application and management is expecting other companies to adopt the concept. Furthermore, if our company succeeds in reducing its ‘carbon footprint rating’ during the year The Inland Revenue Department will reduce the timacapitalism payment tax by an additional 2% and this will be available as a tax refund. It should be pointed out at this stage that the timacapitalism payment does not form any part of the employment contract and the payments made do not constitute any part of basic remuneration. Employees looking forward to the prospective level of timacapitalism payment have to recognise that enterprise success is not always directly related to workplace productivity and can be subject to the vagaries of capitalism e.g. commodity prices, competitors or downturns in markets. Business cycles are a reality of the marketplace, but with all employees working as a team, timacapitalism enterprises will weather the downturns and prosper in the good times. Timacapitalism companies will be more resilient and adaptable. Part-time employment may qualify for timacapitalism payments on a pro-rata basis of employment duration although timacapitalism payment is only available for those currently employed. Employees are not to assume either that the accrual of timacapitalism qualifying units will also confer a greater security of employment for employees. Companies cannot remain in business if they are no longer viable and business decisions regarding staffing may still be necessary. However, this new concept will strengthen our whole enterprise and, hopefully, job losses will occur less commonly. It is more likely that new opportunities may open up for employees to work in other areas or new directions of the company’s operation. New employees who have previously been with another timacapitalism company will have a starting number of qualifying units determined by our own employees after consultation. Management intends to improve communication with all employees regarding the company’s performance during the year, providing that this is not divulging information of strategic importance to a competitor. The payment amount of the qualifying unit will be determined upon the following considerations:
There also has to be recognition by employees of the need to look to the future so that the enterprise is able to be successful and provide employment in the future for young people joining the workforce (and therefore capital must be used in the best way for changing market conditions).
Conclusion As a nation we have demonstrated many strengths such as that we equal, if not surpass, any nation when we are part of a ‘teamwork’ approach or collective effort. This characteristic is demonstrated in sporting endeavours, in hosting international events, in producing opening ceremonies, in national charity appeals and in community endeavours. Despite having these teamwork and collective effort characteristics, we have the paradox of New Zealand having very low workplace productivity as shown on international comparisons? How do we capitalise on these characteristics to change that reputation? Collaborative workplace culture business will out-compete neoliberalist businesses. Sometimes in life the great breakthroughs are surprisingly simple ideas.
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May 2026
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