Workplace Relations and Safety Minister Brooke van Velden. File photo. Photo: RNZ / Samuel Rillstone
Business leaders are backing changes to the Employment Relations Act aimed at improving labour market flexibility, but the Public Service Association call the changes "radical" and warning it will amount to less secure employment.
Workplace Relations and Safety Minister Brooke van Velden announced on Tuesday the introduction of the Employment Relations Amendment Bill to Parliament.
The bill looks to change the distinction between "employment" and "contracting", and makes changes to the personal grievances process.
Under current law, if a personal grievance is established the Employment Relations Authority or Employment Court may award remedies including reinstatement into a role, and compensation for hurt and humiliation.
The changes make clear an employee whose behaviour amounts to serious misconduct will be ineligible for remedies, van Velden said.
"This change will ensure that hardworking New Zealanders don't see bad behaviour rewarded," van Velden said.
It would also remove the '30 day rule', which means employees and employers would be able to negotiate beneficial terms and conditions from day one, and introduces an income threshold of $180,000 above which a personal grievance for unjustified dismissal cannot be pursued.
BusinessNZ director of advocacy Catherine Beard said the bill should provide more certainty, particularly around contract-based work.
"Workers and businesses should have more certainty about the type of work being done from the moment they agree to a contracting arrangement," Beard said, adding that to the personal grievances process were also something that needed to be fixed.
"A system that increasingly fines employers for trying to deal with poor performance or serious misconduct including theft, fraud and even violence, is one that clearly needs fixing."
Beard said the removal of the 30-day rule that automatically classified new employees as union members under a collective agreement was something businesses wanted .
However, the Public Service Association called the changes "radical" and said they amount to less secure employment, lower wages and more dangerous workplaces.
"This is plainly and simply a fundamental erosion of workers' rights to secure employment," Public Service Association national secretary Fleur Fitzsimons said.
"The minister is effectively giving employers the green light to fire workers at will.
She said the changes will make it "virtually impossible" to bring a personal grievance if they are unfairly sacked
"We are seeing the same playbook now with planned cuts to sick pay, pay equity, the 90-day fire at will law, weakening health and safety requirements for employers and the axing of Fair Pay Agreements."
Council of Trade Unions president Richard Wagstaff said the bill would severely undermine workers' rights and was urging all political parties to oppose it.
"Parties across Parliament should vote down this radically unjust law and instead support working people and their families," Wagstaff said.
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