PSA on changes to employment law PDF Print E-mail
Wednesday, 21 July 2010 12:40
PSA Te Pukenga Here Tikanga Mahi
PSA Noticeboard
20 July 2010


The Government has announced plans to introduce a number of changes to employment laws (see below). Taken individually, some of the changes on the surface may seem reasonable to the general public. However, when viewed together, they are clearly a concerted attack on workers' rights and an attempt to weaken employment law protections for all employees. For example, currently the 90-day provisions operate only for small firms. Through the CTU, we hear of many examples of vulnerable workers who are unfairly dismissed. This has a devastating effect on both them and their families. Now the government wants to give all employers, including those in the public sector, the ability to unfairly dismiss all new employees.

The PSA will be vigorously opposing these changes and working with the CTU and other unions to raise public awareness and put pressure on the Government to rethink its proposals.

Here are the main changes proposed to both the Employment Relations Act 2000 and the Holidays Act 2003, with PSA comment.

Employment Relations Act changes

A Bill amending the Employment Relations Act 2000 is being drafted for introduction this year. Among the proposed changes are:

· Extension of the 90 day trial period to all employers.

PSA Comment: The Government has cited a Department of Labour report evaluating the first year of the 90 day trial period for small employers as supporting the extension of trial periods to all workplaces. The report is grossly imbalanced. 3,532 employers were contacted to measure that impact but only 13 employees. It also says that "without any counterfactual evidence it cannot be stated that trial periods had created extra job opportunities". Read the PSA press release

· Rules on union access to workplaces will change so any access will require the consent of the employer - but consent may not be unreasonably withheld.

PSA Comment: The Government considers that employers need to have control over who enters workplaces. This is for a number of reasons, including health and safety and the need to retain productivity. The current law on union access already adequately covers these concerns and so there is no justification for changing this rule. This is really an attempt to place barriers between workers and their union representatives and will encourage bad employers to make union access very difficult.

· Employers will be able to communicate directly with workers during bargaining and at settlement.

PSA Comment: Union members authorise the union to represent them in bargaining because it has the skills, knowledge and experience to negotiate and assess any employer's offer. Current law on this point does allow employers to communicate with employees during bargaining - just not in a way that will undermine the bargaining. Removing this sensible restriction, which this "clarification" will do, invites misuse of power, subtle intimidation and a souring of the employer-employee relationship.

· A number of the rules around personal grievances are being changed to simplify procedure.

PSA Comment: There has been criticism from small employers that the current law is focussed too much on process and not enough on ensuring the right outcome. The PSA does not believe that there is any evidence of this. In fact the current law discourages "adherence to rigid formal procedures". This is a non-issue. Only a very small proportion of employees take personal grievances cases because the process is extremely stressful. The PSA is not aware of any evidence that cases are taken by employees purely on the basis of irregularities of procedure. Where procedural irregularities are raised this is most often done to highlight that the employer has failed to deal fairly with an issue of substance Read our submission on personal grievances



Holidays Act changes

A Bill amending the Holidays Act 2003 is being drafted for introduction later this year and is aimed to be implemented in July 2011.

The proposed changes are:

· Ability to cash up 4 th week of leave.

PSA Comment: Given New Zealand's low wage economy, many employees may be tempted to cash in a week's leave, depriving them and their families of much needed holidays. What they really need is a decent wage increase. And despite the fact that the law will require employees to apply in writing to cash in the leave, it's likely that some employers will pressure employees to cash in leave if it suits the employer's purposes. Everything is at the discretion of the employer, including who to grant this 'privilege' to. All working New Zealanders value our current four weeks' leave entitlement and this change to the legislation is a serious erosion of this condition.

· Employers and employees will be able to agree to transfer the observance of public holidays to another (identified) working day

PSA Comment: This has been presented as a chance for workers wanting to celebrate religious and cultural holidays other than those recognised by public holidays. However, it is the employer who has the power to decide when any alternative holiday is to be taken - not the worker. The reality is that this change doesn't give workers more choice; it just gives employers more power to decide who has to work on public holidays.

· Employers will be able to ask for proof of sickness or injury within three consecutive days of an employee taking sick leave, but will have to cover the employee's reasonable costs in obtaining proof

PSA Comment: Doctors are already saying this will prove unworkable and put pressure on an already stretched health system. The current legislation already provides a remedy for employers to deal with a very small minority of workers who abuse sick leave entitlements. This change to the legislation weakens fair access to sick leave for the majority of workers.
 

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