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

 


Contractors “disappointed” with amendments


/

Media Release – for Immediate Release

30 October 2012


Building Services Contractors “disappointed” with planned Part 6A amendments


Building Services Contractors New Zealand (BSC) has described planned changes to Part 6A of the Employment Relations Act as “disappointing” and likely to make cleaning workers even more vulnerable.

BSC represents New Zealand’s building services contractors who provide a diverse range of cleaning, maintenance and other services. It has lobbied strongly for Part 6A to be revised.

Part 6A aims to prevent groups of low paid workers from being replaced by cheaper contractors or having their pay and conditions reduced for the same job, when a contract is re-tendered or a company changes hands.

However, BSC President Patrick Lee-Lo said that while the amendments announced today by Labour Minister Kate Wilkinson, addressed some of the major problems created by the “unworkable” law, they needed to go further.

In particular, BSC is concerned that one of the proposed changes, to exempt small and medium businesses, with fewer than 20 employees, from the provisions of Part 6A when they take over a contract, will create a loophole for a number of franchise cleaning companies. It is also not clear whether the changes apply to 20 full time employees or to 20 part-time staff.

“Potentially, franchisors could state that a franchise owner is an independent operator and, if an operator or site has fewer than 20 employees, they could be exempt from the law,” said Mr Lee-Lo. “Is that what the Minister wants?

“Some franchise operators win a contract and then parcel that out to several franchisees. So, if they gain a major contract employing 30 staff none of the new employers will have any obligation to those staff.

“This will play into irresponsible operators’ hands and make cleaning staff even more vulnerable, which works against what the legislation was designed to do.”

Mr Lee-Lo said that BSC welcomed some of the changes.

“Some key elements are covered including transfer of funds for transferring entitlements but other areas are left pending.

“This really does not address the significant problems for building services contractors and workers which have been created by Part 6A and the changes could, potentially, be damaging for reputable companies across the sector.

“This review appears to be two steps forward and one back! The BSC is looking forward to its scheduled meeting with the Minister in November to put these questions to her directly.”


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news