The Government plans to amend the Employment Relations Act to strengthen collective bargaining, reinstate minimum standards and employee protections, and prevent 90-day trials being used by big businesses.
The amendments to employee rights roll back changes made by the previous National-led government.
Minister for Workplace Relations and Safety Iain Lees-Galloway said the Bill was part of Labour’s workplace relations programme, which includes minimum wage increases and pay equity legislation.
"Many of the changes in the Bill are focused on lifting wages through collective bargaining," Lees-Galloway said.
Otago Southland Employers’ Association chief executive Virginia Nicholls said she was encouraged the Government has listened to some concerns of small business and had made some concessions.
She believed larger employers would be affected more, with increased compliance requirements, along with changes to collective agreements and bargaining procedures.
"We’re pleased that the Government is consulting extensively before finalising its position on fair pay agreements, pay equity and arrangements giving employee-like rights to contractors," she said.
Council of Trade Unions president Richard Wagstaff said the proposals were a ‘‘good start’’ by Prime Minister Jacinda Ardern to commit to a better life for working people.
However, he was disappointed the 90-day trial "fire at will law" was not to be fully repealed, and would make submissions on that during the legislative process.
"People working for small businesses should have the same basic rights at work as all New Zealanders.
"This law doesn’t deliver that," Mr Wagstaff said.
Mrs Nicholls believed small employers would be pleased that they were able to retain the 90-day trial period.
"This reduces the ‘unfair dismissal’ risk to the employer if this does not work out.
"The retention of this [90 days] provides these employees with the courage to hire new employees," Mrs Nicholls said.
However, the larger employers would be disappointed they would no longer have access to the 90-day trial period, given it had been working well for both employers and employees, she said.
"Changing meal and rest breaks from employers and employees mutually agreeing to the breaks is disappointing."
She said both employers and employees would lose the flexibility which had been working well in their businesses.
She said while reinstatement was being restored as the primary remedy to unfair dismissal, it was not always easy when an employment relationship had broken down.
"However, this will encourage both employers and employees to work this through together in what is a difficult situation," Mrs Nicholls said.
On the rise of the minimum wage to $20 per hour by 2021, Mrs Nicholls said it was a concern to some small to medium-sized businesses not in a position to pay this increase.
The Bill would restore the duty to conclude collective bargaining, unless there is a good reason not to, and repeal the process to have bargaining declared over. It would restore earlier initiation timeframes for unions in collective bargaining, remove an opt-out where employers can refuse to bargain for a multi-employer collective agreement, and restore the 30-day rule meaning that, for the first 30 days, new employees must be employed under terms consistent with the collective agreement.
BusinessNZ chief executive Kirk Hope said many of the changes related to collective agreements and bargaining procedures, which would mostly affect larger businesses. He said most larger businesses would be equipped to cope with the changes which reversed some bargaining and collective agreement rules introduced by the previous government.
Bill Newson, national secretary of Etu, the country’s largest private-sector union, said working people would be in a better position, thanks to the strengthened collective bargaining and union rights.
"In short, what we are seeing is the reversal of much of National’s damaging industrial relations policies, along with some exciting new initiatives," Mr Newson said.
The Bill is expected to have its first reading in early February.
Government’s proposed labour law changes
• Restoration of statutory rest and meal breaks.
• Restriction of 90-day trial periods to SME employers (fewer than 20 employees).
• Reinstatement will be restored as the primary remedy to unfair dismissal.
• Further protections for employees in "vulnerable industries".
• Restoration of the duty to conclude bargaining unless there is a good reason not to.
• Restoration of the earlier initiation timeframes for unions in collective bargaining.
• Removal of the opt-out where employers can refuse to bargain for a multi-employer collective agreement.
• Restoration of the 30-day rule where for the first 30 days new employees must be employed under terms consistent with the collective agreement.
• Repeal of partial strike pay deductions for low-level industrial action.
• Restoration of union access without prior employer consent.
New proposals
• A requirement to include pay rates in collective agreements, based on recent case law.
• A requirement for employers to provide reasonable paid time for union delegates to represent other workers.
• A requirement for employers to pass on information about unions in the workplace to prospective employees.
• Greater protections against discrimination for union members.
Source: NZN
