Changes to the transfer rights of ''vulnerable'' employees are welcomed by Grant McLauchlan, of Dunedin, the managing director of CrestClean.
With New Zealanders returning to work and looking forward to what's installed for 2013, there's a policy issue lurking in Wellington that could affect many a workplace.
In the latter part of 2012, Cabinet agreed to changes to Part 6A of the Employment Relations Act following a review that found significant operational issues around the transfer of employee entitlements. The Government said these changes would provide certainty and clarity for employers, while also protecting affected employee benefits. To cut a long story short, a few years ago legislation was introduced to protect so-called vulnerable employees. As time wore on, it became apparent that unintended consequences were arising as a result of Part 6A. Former Minister of Labour Kate Wilkinson was tasked with trying to sort it out. The tragedy at Pike River saw the end of her term as Minister of Labour.
The appointment of Christopher Finlayson as Acting Minister of Labour in November 2012 gave hope to participants across New Zealand's $1 billion cleaning industry that at last there was a minister known for making decisions. It is hoped that by addressing issues arising from Part 6A, the Government's objective of building a more productive and competitive economy can be further enhanced. About now, you may be wondering how this affects you or your place of work. Here's how.
Typically, your office is cleaned by competent, trained commercial cleaners that arrive about the time you head out the door to go home. They work away cleaning desks, emptying rubbish bins, vacuuming your office areas, cleaning the toilets and maybe cleaning up the coffee mugs - hopefully, not in that order.
You come back to the office or workplace the next day and everything should be cleaned and sanitised and you get on with the job.
But what happens if you come back to work day after day and find your cleaner isn't doing a good job, and your office cleaning isn't up to the standards you would like? In most cases, if this happens on an ongoing basis, you simply change cleaning suppliers.
If it was only that simple.
As a result of Part 6A, your cleaner or cleaners are deemed vulnerable employees. That means that when you change cleaning providers, the incoming providers must take on the employees of the previous one - on the same terms and conditions. It also means that a business unhappy with its existing cleaner and that wants to change providers can, in fact, end up with the same person doing the cleaning that it is unhappy with in the first place. Let's say you're in charge of a large government department, following government procurement rules about who you can receive tenders from. One day you're advised that there is general unhappiness with the level of cleaning being undertaken and there's a need to put the cleaning contract out for tender.
Under the Ministry of Business, Innovation and Employment's refreshed Principles of Government Procurement, you are no longer limited to who you can receive tenders from - a refreshing break from the closed-shop approach stifling previous government department procurement practices.
A new provider is awarded the contract and you hope all will be sorted. Here's where Part 6A kicks in.
Those five, 10 or whatever number of cleaners your government department had previously working in your large office could very well be the same ones undertaking the cleaning when the new provider walks through the door. If these people elect to transfer to the new provider, the new provider is legally bound to take them on the same terms and conditions that their previous employer had agreed to. As a result of Part 6A, New Zealand businesses are forced to accept another company's employment terms and conditions. The ability to manage a business becomes harder and more complicated.
In effect, the Government's objective of building a more productive and competitive economy is compromised and undermined. The Government is, thankfully, proposing changes to Part 6A this year. Put it this way: If members of Parliament were deemed vulnerable employees, they could turn up to your office or workplace tomorrow and have the same terms and conditions they received as an MP. I'm sure any employer would be happy with that.
• CrestClean has sought changes to Part 6A and faced Employment Relations Authority disputes as a result of Part 6A.
