Federated Farmers: Federation focused on employment law changes

Federated Farmers has been asked to comment on minimum wage rates.

Amendments to employment law seem to be in favour with Parliament and Federated Farmers has been asked to comment on minimum wage rates.

There are number of Bills, both Government and members', making their way through the House alongside stakeholder consultation from MBIE on the rate of the minimum wage from April 2016.

Since 2000, successive governments have substantially increased the minimum wage annually well above the rate of inflation. However, with very low inflation and tougher economic times ahead, particularly in regional New Zealand and for farmers, it is questionable whether another rise is justified.

The consultation on the minimum wage does not require a law change, but there are a number of amendments to legislation in front of select committees right now.

There is a Government Bill that, among other things, will seek to deal with the infamous 'zero hour' contacts by stopping employment arrangements that allow employers to impose strict conditions on employees but have no level of reciprocity.

For example, requiring people to be available for work for a certain number of hours but giving them no guaranteed minimum, thereby limiting their ability to seek employment elsewhere.

For farmers it's important to recognise this change will not affect genuinely casual working arrangements where both the employee and employer can engage with one another on their own terms with no expectation of regular or ongoing work.

The Bill also seeks to increase the length of paid parental leave available to employees and the self-employed. This is the second Bill being debated at select committee that seeks to increase parental leave.

The other is a Bill in the name of Labour MP, Sue Moroney which passed its first reading.

The Government's Bill seeks to increase paid parental leave to 18 weeks in 2016 whereas Moroney's Bill will take it further to 26 weeks. Moroney's Bill appears to have the numbers but Bill English has warned he may use his financial veto to stop it going through.

Lastly, there is another members' Bill, from Labour MP David Parker, that also passed its first reading before the select committee.

This Bill, if passed, would provide for a minimum rate of remuneration, at least as much as the minimum wage, to contractors in prescribed sectors.

While agricultural contractors are not listed in the Bill, it will affect forestry contractors and those in construction, two industries which farmers will often engage contractors.

Federated Farmers is taking a close interest in these developments and will work to make sure the interests of farming are protected.