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Home / New Zealand

Sweeping changes to empower workers, unions in coming weeks

Derek Cheng
By Derek Cheng
Senior Writer·NZ Herald·
1 Nov, 2017 04:00 PM4 mins to read

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Workers and unions are set to be empowered by the Government changes to workplace relations. Photo / Hawke's Bay Today

Workers and unions are set to be empowered by the Government changes to workplace relations. Photo / Hawke's Bay Today

Sweeping workplace changes that empower workers and unions will be introduced in coming weeks as the new Government moves to axe the Hobbit law and restore the right of new workers to challenge unjustified dismissal.

But Minister for Workplace Relations Iain Lees-Galloway is being careful not to alienate businesses, and wants them to be comfortable with the changes that he hopes will survive a future change of Government.

In its 100-day plan, Lees-Galloway confirmed that the Government plans to introduce a law to restore the right for film and television workers to collectively bargain, change the 90-day trial to include recourse for unjustified dismissal, and bring back a host of workers' rights that were removed in the last nine years, including:

• union access to a workplace, the right to initiate collective bargaining, and a duty on all parties to complete negotiations

• guaranteed rest and meal breaks

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• guaranteed pay and conditions for vulnerable workers when employers change

• removing the ability for employers to deduct pay for low-level industrial action

These come on top of other 100-day promises, such as lifting the minimum wage to $16.50 an hour by next April, and extending paid parental leave to 26 weeks.

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Lees-Galloway said workers' rights had been eroded, citing the case of the ambulance workers who had their pay cut after they protested by refusing to wear uniforms.

Business NZ chief executive Kirk Hope said he hoped unions would use the greater power responsibly.

"I would expect that to be the case. Without business, there aren't employees.

"It's going to be challenging for small businesses to think about how they will comply with some of this, and for large businesses, to be honest."

But he was hopeful for constructive engagement with the Government as the changes move through Parliament.

Lees-Galloway acknowledged official advice that 90-day trials had had little impact.

"But it diminishes workers' rights, so let's get rid of it."

A new 90-day trial would include a free referee service to rule on cases of unjustified dismissal within three weeks of being lodged. While yet to be finalised, he said it could be part of Employment Mediation Service, and with no appeal mechanism to shield parties from being drawn into lengthy processes.

"I'm very strongly of the view that there should be no lawyers involved, and there should be a cap on payouts, probably around the $5000 mark."

The service is costed at $2 million for the first year and $4 million per year after that.

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Hope reserved judgment on the referee service.

"Until we see how it operates, we won't know whether it's good or bad."

Lees-Galloway​ said the 2010 Hobbit law had, in practical terms, prevented film and television workers from collectively bargaining. The law meant that workers were contractors by default, meaning they could not legally collectively bargain.

Previously, workers could potentially disrupt a production by testing their worker status and, if confirmed as an employee, start collectively bargaining. It was this uncertainty that was highlighted as potentially keeping film producers from making productions in New Zealand.

Lees-Galloway said the issue was still being working through. But the change would not prevent film and television workers from working as contractors, if that was their preference.

Echoing the Prime Minister's sentiment about inclusive Government, Lees-Galloway said he wanted a "new paradigm" that gave businesses certainty.

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"That was a failure of the previous [Government's] policy - it was always going to be so abhorrent to us that we were going to something to it. I would like to come up with a solution that National will be comfortable with, and will last.

"We traditionally see the employer-worker relationship as combative. I would like to see it as more collaborative. We won't agree on everything, but we want a programme that businesses can buy into."

Asked what is business-friendly in his programme, he said: "Businesses that have a constructive relationship with a union do very well ... When you engage workers, you have a happier, more productive workforce, and a more highly engaged workforce will lead to less industrial action."

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