BusinessNZ considering an international challenge to labour law changes

Monday, 10 September 2018

Workplace Relations Minister Iain Lees-Galloway has said he hopes proposed labour law changes would survive a future change in Government, however National has already vowed to repeal key parts of the Employment Relations Amendment Bill.

New Zealand's leading business groups are threatening to take an international challenge to proposed industrial law reform, claiming it breaches international labour law.

The Employment Relations Amendment Bill has been reported back to Parliament, with the majority of the Education and Workforce Committee recommending the legislation be passed with only minor amendments to that originally put before the house in January.

While the Labour-led Government claims the legislation largely returns New Zealand to employment law settings which were in place as recently as 2015, business groups have repeatedly attacked the legislation, with the member groups of BusinessNZ running a 'fix the bill' campaign on billboards and in print media.

BusinessNZ chief executive Kirk Hope said the legislation 'remains harmful and oppressive' and it would continue to voice its opposition as the legislation progressed.

Council of Trade Unions president Richard Wagstaff said the law changes had been subjected to 'cynical' attacks by well-funded business groups.

* Minister says campaign against labour law reform is 'deliberately misleading'

* Prime Minister doubles down on business confidence, says 'no grounds' for uncertainty**

'BusinessNZ is also considering pursuing a claim to the International Labour Organisation or International Court of Justice on parts of the Bill which are contrary to international law,' Hope said in a statement, without giving details.

The organisation's members include a number of New Zealand's largest companies as well as the chambers of commerce network.

Frequently linking falling business confidence to labour law changes, the 'fix the bill' campaign has warned that the proposed bill would end 90-day trials for companies with at least 20 staff, will give union officials access to the workplace at all time, will force businesses to settle collective agreements and will remove the right to opt out of multi employer collective agreements.

Workplace Relations Minister Iain Lees-Galloway said the structure being proposed would be recognised by employers from a time when the 'economy thrived'. He was confident the legislation was compliant with ILO rules around collective bargaining and the right to organise.

“The ILO has stated their convention allows for rules requiring parties to enter negotiations. It has also said it is important that both employers and trade unions bargain in good faith and make every effort to reach an agreement.”

Lees-Galloway has previously claimed the business campaign against the bill was deliberately misleading and may have contributed to falling business confidence.

BusinessNZ chief executive Kirk Hope said the Employment Relations Amendment Act 'remains harmful and oppressive' and it would continue to voice its opposition as the legislation progressed.

Council of Trade Unions president Richard Wagstaff welcomed the select committee report, which maintained the commitments made by Cabinet in 2017, 'despite cynical attacks by a big business lobby willing to splurge on advertising'.

Wagstaff said: 'This Government was elected on a promise to help everyday working New Zealanders get ahead. And they recognise that big business is taking too much of the wealth working Kiwis are generating.'

While Lees-Galloway has said he hoped that the industrial law reform would survive a change in Government, National has already vowed to repeal the changes.

The select committee report included a minority view from the National Party which said the bill sought to grow union membership and influence in the workplace.

'The cumulative impact of changes to workplace relations contained in this bill will place a handbrake on economic growth, further undermine business confidence, reduce job creation opportunities for vulnerable employees, create a return to 1970s style aggressive adversarial trade union activity, and will ultimately be bad for both employees and employers.'