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OECD endorses National's employment law policy

Wayne Mapp MP National Party Industrial Relations Spokesman

05 July 2005

OECD endorses National's employment law policy

National Party Industrial Relations spokesman Wayne Mapp says it is encouraging that the OECD endorses National's policy of trial periods for new employees.

The latest OECD report says:

"...The potentially damaging effects of increases in employment protection on the job prospects of marginal groups of workers could be mitigated by allowing an initial trial period during which the employer would be exempt from unjustified-dismissal procedures."

"This is precisely National's policy, and it is encouraging that the OECD has come out in support of trial periods," says Dr Mapp.

"New Zealand is one of only two countries in the OECD that don't have employment trial periods, the other being Denmark. Clearly, our employment law is not in line with mainstream OECD nations.

"National will establish a 90-day probation period for new workers to reduce barriers to employment."

The OECD report also points to the increasing rigidity of New Zealand's employment law, and particularly mentions last year's amendment to the Employment Relations Act.

"National opposed this legislation, and has vowed to repeal the amendments in government," says Dr Mapp.

ENDS

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