Law tweaks 'could hurt trade deal'

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Top United States union leader Richard Trumka has climbed on The Hobbit bandwagon, claiming that the Government's decision to amend labour laws to suit Warner Bros could affect American union support for a high-profile trade deal involving the US and New Zealand.

Trumka has also called on the Government to repeal the amendment to allow those workers who "should be properly classified as employees" to enjoy the rights to which they are otherwise entitled under national law.

The president of the American Federation of Labor and Congress of Industrial Organisations outlined his objections in a letter to Trade Minister Tim Groser sent just two weeks before New Zealand hosts the fourth round of negotiations on the Trans-Pacific Partnership agreement, which starts in Auckland on Monday.

"The amendment to the Employment Relations Act is particularly troubling in light of the ongoing negotiations for a Trans-Pacific Partnership Trade Agreement, to which both the United States and New Zealand are now parties," the letter said.

"The Government's move to eliminate the fundamental rights of workers in order to attract investment would violate the labour provisions of any future trade agreement between our two countries that we could support."

Trumka said he had been assured at a September 3 meeting with New Zealand Ambassador Mike Moore in Washington that New Zealand's labour standards were so high "there could be no issue with regard to trade between our two countries as to whether low labour standards could be used for competitive advantage".

In his November 15 letter, Trumka went on to say he had been taken aback to learn from the Council of Trade Unions that on top of generous subsidies, the New Zealand Government had agreed to legislate to classify all workers employed in the film production industry as independent contractors (except in the unlikely case that the employer agrees to recognise the worker as an employee).

"The misclassification of workers in the film production industry is a serious problem that not only robs workers of decent wages, working conditions and benefits but also deprives workers of the right to organise, form a union and bargain collectively," said Trumka.

CTU president Helen Kelly - who maintains the issue had been a hot topic at the recent ILO meeting - said the letter was making the point about the "domino effect of decisions".

Labour Minister Kate Wilkinson - who will respond to Trumka on the Government's behalf - says the recent law change clarifies the employment status of workers in the film industry, reflecting the reality of working relationships in that industry, which are predominantly contract-based.

It does not prevent film production workers from being employed as employees where the parties agree.

"We see this law change as entirely consistent with our commitment to observe the principles of freedom of association and promotion of collective bargaining and with the labour provisions in our trade agreements," says Wilkinson.