Swain gives Labour law assurance

Paul Swain

Business groups yesterday welcomed reassurances from Minister of Labour Paul Swain that the Labour Party has no plans for major employment law changes if re-elected.

Speaking at a Business NZ election conference in Wellington, Swain downplayed Labour's support for the Greens' Flexible Working Hours Bill and said the party had no plans to introduce legislation for compulsory multi-employer agreements or pay equity.

Responding to questions about pressure from unions to introduce legislation to strengthen multi-employer agreements, Swain said: "There's no plans for that."

On the subject of flexible working hours, Swain said: "That's an issue that does need to be part of good faith negotiation with employers - that is my personal view".

Labour voted in favour of the Flexible Working Hours Bill at its first reading in April, but Swain said that was so it could proceed to the select committee stage, "so people could have a chance to come and air their views ... We've made no commitment to it beyond that".

If re-elected, Swain said, Labour would try to "address some of the imbalances" in the area of pay equity, "but there's no proposal or plan that I've got ... to introduce legislation on that".

Swain also said work-life balance was an issue that needed to be addressed.

"But I don't see at the moment a legislative response to that."

Business NZ chief executive Phil O'Reilly said it was helpful Swain was in favour of non-legislative approaches to those issues.

"It's good to hear him say that and I think business will take some good heart from that.

"Of course, the problem that he's got is that they won't be governing alone and the Greens have made it clear they want to pass that Flexible Hours Bill into law if they get to be a coalition partner.

"We don't think laws are necessary in this area and we'll try and persuade the Greens on this as well."

The Employers and Manufacturers Association chief executive, Alasdair Thompson, said Swain's comments were "pleasing though surprising".

"These issues have aroused significant uncertainty on what a third-term Labour Government might introduce.

"Business will be reassured and pleased these issues are not on Labour's agenda."

Employment law issues came in fifth in a Business NZ survey of 1100 of its members on what was "top of mind for business", released at the conference.

The survey showed the most pressing issue was the skills shortage. That was followed by concerns over Government spending and uncertainty about the stability and affordability of electricity.

The desire for a free trade agreement with the United States was the fourth biggest issue.