NZ Workers worse off from today, unfortunately not an April fools joke

POLITICS. .

Major changes to New Zealand employment laws come into effect today that swing the balance of power from away from workers and even further toward employers. The 90-day trial period, which allows workers to be fired in the first 90 days of employment with no legal recourse, now applied to every worker in the country, after previously applying only to businesses with less than 20 staff. Labour Minister Kate Wilkinson had recommended extending it to companies with up to 50 workers, but after a push from the far-right ACT Party it was extended to the entire labour force.

ctu logo web 7zVkl 17844
ctu logo web 7zVkl 17844

The National led government is claiming that the law change will increase job opportunities, but a Department of Labour study of the trial period for small businesses found that 22 per cent of workers hired under the provision were dismissed before the period ended. The report also noted it "cannot be stated categorically that trial periods had created extra job opportunities" Evidence from overseas countries with similar legislation showed the same thing.

The union movement is fighting the new law by attempting to exclude the 90 day provision from all collective agreements. Unions have already successfully negotiated with several large employers including Victoria and Massey Universities and the dairy giant Fonterra. Telecom and Foodstuffs Wellington. EPMU Andrew Little told Radio New Zealand that the union is finding a growing number of employers who say they will not use the new laws.

CTU Vice President Syd Keepa said on the organisations website that the changes will particularly affect people at the margins of the workforce, such as in low paid, casual and low skilled jobs. The implication of that is that Maori will be disproportionately effected. “What Maori workers want now is a decent plan to create jobs and lift incomes, not policies to make it easier for employers to sack them,” Maori unemployment is at 15.5% while overall unemployment is less than half that rate. “Workers are feeling the pinch right now with rising costs in petrol, food and other items.  These changes are a kick in the teeth for all workers, and Maori in particular,” said Keepa.

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