"Removal" of 90-day trials for workers welcomed in Hawke's Bay

Port of Napier does not use the 90-day trial process, chief executive Todd Dawson says. Photo / Duncan Brown

Hawke's Bay businesses have given a lukewarm welcome to Government proposals to only scrap 90-day trial periods for workers in companies with more than 20 workers.

Workplace Relations and Safety Minister Iain Lees-Galloway yesterday announced a new Bill to amend the Employment Relations Act 2000.

Mr Iain Lees-Galloway said the Bill, which would provide workers with the right to prescribed meal and rest breaks and limit the use of 90-day trial periods to businesses with fewer than 20 employees, was designed to provide greater protections to workers, especially vulnerable workers, and strengthen the role of collective bargaining in the workplace to ensure fair wages and conditions.

"Making life better for working New Zealanders is a fundamental value for the Labour-led Government," Mr Lees-Galloway said.

Hawke's Bay Chamber of Commerce chief executive Wayne Walford said it was too early to tell what the local reaction would be.

"But from what I have heard this has been an enabler for business over the last few years. I think the Government needs to work on certainty of direction before some of the enabling tools are changed.

"It appears confidence in business is waning so certainty of direction and a positive plan for regional development would provide the bigger picture. One of the developments to support that big picture might be a change to 90 day trials.

"It will be interesting to see what the public feedback identifies."

Napier Port chief executive Todd Dawson said the port did not use the 90-day trial mechanism and he would not be necessarily concerned if it was removed as an option.

"Napier Port is recognised as a health and safety leader in the port industry and, like most other significant Hawke's Bay employers, we consider ourselves to be a responsible and diligent employer.

"Our recruitment process is extremely robust. We invest significantly in ensuring our people are appropriately inducted, trained and supported as they enter the business and throughout their employment here. A high level of safety is more about building the right culture than it is about an employment contract."

However, the Forestry Industry Contractors Association said it was concerned about the added pressures removing the mechanism would have on medium to large Hawke's Bay contractors.

"Contractors are under enough pressure as it is with health and safety and production pressures", a spokeswoman said.

"This is just additional HR pressure that they don't have time, money or resources for."

E tu National Secretary Bill Newson said the changes recognised the pressing concerns about the personal and economic cost of low wages and inequality.

"This Government has made fixing inequality a top priority. Wages are a huge factor in this, so strengthening the rights of workers and their unions is critical."

The union also expressed disappointment that there was not a majority in Parliament in favour of a full repeal of 90-day trials.

It was too early to tell what effect the changes would have on ongoing negotiations between Silver Fern Farms and maintenance workers at its Takapau plant who are in the process of negotiating a new pay deal.