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


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>