National releases controversial industrial relations policy

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Thu, 24 Jul 2008 12:00a.m.

National's leader John Key says his party's tax cut package is locked and loaded but you will not get to see it until the first week of the election campaign.

Instead he has released the controversial industrial relations policy that contains what the Government calls a "hire and fire" clause.

Employment relations have been a touchy subject for National and to make sure there were no slip ups today.  Leader John Key launched his policy, alone and without fan fare.  It is only one page long, after all.

Key says it is policy for the times.  And as signalled, includes the right for small businesses to use a 90 day trial period.  But he denies that is targeted for the employers' benefit only.

“I think those who want to get a job will benefit enormously from it i see it as a policy to hire not to fire and all the experts support the idea that it will work well,” says Key.

But just as quick as Key was releasing his brief, the Government and its allies, the unions, were attacking it.

“It's drop half a page and run,” says Labour Minister Trevor Mallard.  “What this does is to implement John Key's promise to lower New Zealand wages, it does it by lowering the wages of people who are sick, it does it by taking their holidays away and through the fire at will provisions.”

If in government, National says it will keep 99 percent of the current Employment Relations Act, but add the 90 day trial for business with fewer than 20 people.  To be agreed between employer and employee. And restore workers rights to bargain collectively without belonging to a union.

It will keep Labour's four weeks annual leave but change it to allow employees the chance to trade in the fourth week for cash.

Unions are not impressed.

“Low paid workers maybe pressured into selling their fourth week of annual leave and will they be required to pay workers the amount that leave is worth or will they be able to reduce it's value because people might be hard up and forced to sell just simply to make a normal days wages,” says Helen Kelly, of the Trade Unions Council.

But National says that won't be up for negotiation.  Key has also committed to reviewing and raising the minimum wage but will not say by how much.

“I wouldn't trust them to do anything for lower income wage earners because of their history,” says Mallard.

National also plans to review the Holidays Act.  It wants to look at sick leave and statutory holidays and the rate they are paid at.  Business New Zealand welcomes the policy and says the flexibility will be attractive.

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Comments

28 Jul 2008 03:40p.m.

Alex wrote:

What do we want? Ninety days with no rights! When do we want it? Now!

26 Jul 2008 12:45a.m.

Alex wrote:

Can someone tell me what you can dismiss employees for at the moment? If I were to believe right wingers, I'd be thinking they couldn't dismiss anyone for any reason.

The problem with the 90 day no rights scheme is just that - you have no rights for the first 90 days. You have no chance for a court hearing if you think you've been unfairly dismissed.

The employment market will also be tightened - who's going to want to quit their job to work for a small business knowing they'll have no rights?

And we know after a year or two National would say,"Well, it's worked so well in the small business format - we'll extend the program to all employers."

25 Jul 2008 04:13p.m.

ell wrote:

What do you mean by that John. still have to have just cause
to lay someone off the only people that would have to worry are the one that don't perform. I suppose it would be like you employing a man to mow your lawn and he charged you $40 a mow with the edges done you come home and the lawns mowed bout the edges are not done so you tell him not to forget the edges and the next mow he misses the edges again what do you do.

25 Jul 2008 12:07p.m.

John, Lower Hutt wrote:

If I were a new employee, under this legislation I would feel on edge for three months, although I think National will reserve their most radical reforms for welfare.