National under attack over holiday u-turn

The National Party came under attack yesterday from both sides of the political spectrum after announcing a u-turn on its holidays policy.

National leader Don Brash said the party had decided to allow workers to keep the fourth week of annual leave promised by Labour, after initially opposing the move.

Unions welcomed the change of stance, but it was attacked by political parties to the left and right of National and by the business community.

A change to four weeks' leave was included in the Holidays Act which passed into law last year and is due to come into effect on April 1, 2007.

At the time National said it would lead to higher costs for employers, which they would eventually have to pass on to workers, leading to lower wage rises.

Acting Labour Minister Ruth Dyson said yesterday that National's decision was an unbelievable "flip-flop" that seriously undermined its credibility.

National has also reversed its opposition to the Government's superannuation fund, and Dr Brash has reversed his own personal position on the Civil Union Bill, voting against it at its second reading.

"This is unbelievable. He has been so vehemently opposed to this [holiday] policy," Ms Dyson said.

Act leader Rodney Hide said National's policy change reeked of populism and "vote-buying".

"National is increasingly looking like Labour in drag," he said.

Act was now the only party representing the interests of small businesses, which would be hit hardest by having to provide four weeks' annual leave, he said.

Business NZ chief executive Phil O'Reilly said the policy change was disappointing.

"The policy won't boost productivity, and may not help employees significantly, as the cost of the increased leave is likely to forestall wage increases."

But Dr Brash said National's change to accepting four weeks' annual leave as a "default position" was pragmatic as many employers and staff had already factored the change into future individual and collective agreements.

The policy was also flexible, allowing workers, if their employer agreed, to cash in the fourth week if they chose.

He said the Government's "flip-flop" accusations were hypocritical.

"The Government has been doing flip-flops on all sorts of issues all year, starting with race relations."

It had been "highly disparaging" of his January Orewa speech setting out his party's position on race relations, but within a month it was rushing to change its own policies, he said.

It had also dropped its unpopular school closures programme as National rode high in the polls.

Dr Brash refused to concede that National's policy change was purely populist.

"We still believe what we originally said, but this gives employers and employees the flexibility to choose."

Engineering, Printing and Manufacturing Union national secretary Andrew Little said members welcomed National's policy switch.

"We welcome National's decision, but we're not blind to the reason," he said.

Repealing the fourth week of annual leave would have been politically difficult for National, he said.

Green MP Sue Bradford welcomed the change, but said National should go further in adopting worker-friendly policies.

WHAT THEY SAID

This is unbelievable- Ruth Dyson, Labour.

Labour in drag- Rodney Hide, Act.

The policy won't boost productivity, and may not help employees significantly - Phil O'Reilly, Business NZ.

We welcome National's decision, but we're not blind to the reason - Andrew Little, Engineering, Printing and Manufacturing Union.

- NZPA