Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Australia Steals Another March on New Zealand

Australia Steals Another March on New Zealand

“The Australian government has (almost) had the good sense to recognise that mandatory unfair dismissal laws are bad for firms and workers alike”, Roger Kerr, executive director of the New Zealand Business Roundtable said today.

He was commenting on the announcement that businesses with up to 100 workers will be exempt from unfair dismissal laws, while probation periods for new employees in businesses with more than 100 workers will increase from three to six months.

Mr Kerr said that a 1996 study published by the Business Roundtable documented the harmful effects of mandatory unjustifiable dismissal laws and showed that they were equivalent to a tax on wages (leaving workers with lower pay on average) and on employment (costing New Zealand a significant number of jobs) .

“The main thing wrong with the Australian proposal is the irrelevant distinction between ‘small’ and ‘large’ businesses, which is also offensive to the rule of law”, Mr Kerr said. “It makes no sense for mandatory dismissal rules to be applied to larger businesses either, and some will no doubt reorganise their operating units to get around them.

“Overall, the Australian government’s proposed industrial relations reforms still fail to recognise that there is little need for special regulation of labour markets, but at least they are a step in the right direction, especially with respect to unfair dismissals. If they are adopted by the Australian parliament, Australia will steal a march on New Zealand, which has been going in the opposite direction with more restrictive labour law”, Mr Kerr concluded.

27 May 2005


© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news