None of the key elements that
business wanted removed have been amended, nor changed in any significant
manner in the Bill, reported back to Parliament.
At least 2500 businesses
actively submitted, presented to the select committee or contacted Government
during the consultative process to voice their concerns and give tangible
examples of how the changes would negatively impact their operations. Yet,
these have not been listened to in any substantial manner and it would appear
ideology has over-ridden the practical realities of operating a business.
The EMA, along with its
fellow regional associations, actively lobbied and campaigned for four key
areas to be modified as it believed these will not deliver to the Government’s
stated aims of a high wage and high performing economy, nor help businesses to
be more productive. The joint Fix The Bill campaign resulted in at least 2254
emails being sent to Government MPs seeking clarification on how the changes
will help their business succeed.
The four aspects of the Bill
that were particularly worrying for business were:
-
Employers with 20
employees or more will lose the right to include 90-day-trial periods in
employment agreements. However, findings from a nationwide survey of employers found that the 90-day trial periods were useful for
businesses of all sizes, to give prospective employees a chance.
-
Businesses will
be forced to settle collective agreements, even if they don’t or can’t agree
-
Allowing union
representatives access to workplaces without permission
-
Not allowing
businesses a choice to opt out of a multi-employer collective agreement (MECA)
With more than 50% of New
Zealand businesses employing fewer than 100 staff, the EMA is deeply worried
the changes in the Bill combined with the raft of other legislation in the
pipeline will unduly burden smaller operators.
Furthermore, despite rhetoric
from Government that it is listening to business, this is a tangible example
that ideology rather than solid public policy driving decisions and does not
bode well for business going forward.
Throughout this process the
EMA has been puzzled by how any of the proposed changes to the industrial
relations framework will take the country forward in terms of the Government’s
goal of developing a modern, nimble and high performing economy.