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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news