90-day bill passes first reading

Andrew Little, national secretary of the EPMU. Photo / NZ Listener

Legislation that extends the 90-day employment probation period to all businesses passed its first reading in Parliament today after strident protests from the Labour Party.

Unions are also fighting it and rallies are planned for Auckland, Wellington and Christchurch on Saturday and in Dunedin on Sunday.

As the debate in Parliament was taking place, 1700 workers packed two meetings in Auckland to protest against the move.

The probation period currently covers businesses with 19 or fewer employees and unions say when it covers all businesses it will affect 400,000 workers - the number who start work or change jobs each year.

During the probation period employees can be sacked without the right to claim unfair dismissal, and the Government says it has already benefited hundreds of unemployed people who wouldn't have been hired without it.

"This is pragmatic, sensible and above all it's fair," Labour Minister Kate Wilkinson said during the first reading debate.

"Probation periods are used all over the world...and in Australia it is for 12 months."

Ms Wilkinson said Labour and the unions were "blinded by ideology" and were refusing to see the positive aspects of it.

Labour MP Trevor Mallard, the party's labour relations spokesman, said it was an attack on workers' rights and an attempt by the Government to drive down wages.

"It is unfair, unbalanced and unnecessary," he said.

"It is an attack on job security and it allows people to be sacked without reason."

Mr Mallard's colleague Darien Fenton said the Government was desperate to show it was doing something for the economy, because it had no job creation plans.

"This bill is the big stick, it's a low-trust approach to labour relations," she said.

The Engineering, Printing and Manufacturing Union (EPMU) launched another attack on the bill today, saying the 90-day period allowed arbitrary dismissal with no right of review or appeal.

"The law change won't create jobs - jobs are created when there is work to be done and the person who wants it done sees value in paying someone else to do it," said EPMU national secretary Andrew Little.

The bill also makes changes to union access to workplaces.

When it becomes law, access will be conditional on the consent of the employer. Consent can't be unreasonably withheld.

It also makes minor amendments to collective bargaining and personal grievance procedures.

The bill passed its first reading 64-57.

It has been sent to the industrial relations select committee for public submissions.

- NZPA