You do know z-index only applied to positioned elements, right?
But regardless, in this case, if you'd managed to get the text over the image, the image would have disappeared (because the text and the white background are on the same level). If you give the text a right margin, you can get it to wrap before the image. Just, if you don't want the text to wrap right where the image ends, use margin for the image and padding between the image and the text (if you don't, any background images on the elements won't line up).
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