Unions and bosses split on election

Employers and unions both say labour relations will return to "the bad old days" if the wrong party gets in. Only their definition of the "wrong party" differs.

Council of Trade Unions economist Peter Conway says National will take industrial relations back to the 1990s.

Its changes are "not a model for investment in people - or in capital - it is back to the bad old days".

But Business New Zealand chief executive Phil O'Reilly says recent industrial action around what are essentially centralised wage claims and Labour's desire to further regulate workplace relations make "it start to feel like the bad old days of the 80s".

However, there is a sense that middle ground has been reached since 2000, when Labour replaced National's Employment Contracts Act with the Employment Relations Act, making it much easier for unions to organise and enforce collective bargaining.

That ground may have got a little boggy with last year's revision to improve workers' bargaining strength and the introduction of the worker-friendly Holidays Act, but both sides rank the need to improve labour productivity as the top issue. And both fret about the skills shortage that is a brake on the economy.

CTU president Ross Wilson says labour market relationships have come a long way in the course of addressing the "real" issues - improving productivity and moving the economy to a higher-skill, higher-value level.

"We have done that through several tripartite initiatives with Business New Zealand, taking the message out to workplaces that the future of our sector is going to be different. We need to increase the value of our products and services and developing the right skills is fundamental."

O'Reilly is unhappy about mounting labour law costs, but for him the real issue is improving productivity.

"There is no question productivity is partially based on labour markets and flexibility is the key."

But there is no one-size-fits-all solution. "It's a complex interplay of factors. Business will be saying to both parties: Make sure your labour market practices do not get in the way of building productivity."

O'Reilly believes National's proposed changes will "arguably increase workplace productivity".

But he notes that a survey of employers showed they did not want to go back to the Employment Contracts Act.

Wilson says the Employment Relations Act is working and that National's labour policy is based on confrontation and "out of date".

A recent Victoria University survey found wage rises in the past 12 months were higher than at any stage in the past 14 years, but low given the health of the economy.

Auckland University Business School associate dean Peter Boxall says university surveys suggest "a good" labour relations climate.

"We have a pretty high level of job satisfaction and a fairly co-operative state of labour relations."

The rash of private sector strikes this year was underpinned by a hot job market and the Engineering Union's 5 per cent wage rise campaign.

POLICY HIGHLIGHTS

Labour
Retain ACC.
Fine-tune labour law.
Strengthen rights of casual staff.
Protect contractors.

National
New law - best of Employment Contracts Act and Employment Relations Act.
Overhaul Holidays Act.
Cut OSH-related business costs.