25 January 2018

Employment changes will reduce job opportunities

The Labour-led Government’s employment law changes announced today can only slow down New Zealand’s high-performing job market, National Party Workplace Relations Spokesperson Amy Adams says.

“These changes will only reduce job opportunities and wage growth, especially for those vulnerable workers on the edges of the labour market. They also mean workers will have less flexibility to get their job done,” Ms Adams says.

“The law as it stands encourages all businesses, small and large, to grow their workforces and take a chance on new workers and long-term unemployed people.

“While Labour have now partially backed down and allowed small businesses to continue with 90 day trials, they’ve still closed those trials off to the bigger businesses that take on many of these vulnerable workers. Those workers will have fewer opportunities.

“If 90 day trials are okay for small businesses, then why shouldn’t they apply to larger businesses as well?”

Ms Adams says that with New Zealand’s world-leading performance in job creation over the last few years, the onus was on the government to justify the need for the reforms.

“Under current employment law New Zealand has added a mammoth 245,000 jobs in the last two years and has the third highest employment rate in the developed world. Nearly 80 per cent of New Zealand workers are in full-time jobs and wages have been growing at twice the rate of inflation.

“These changes will only damage that track record. So why are they actually needed?

“New Zealanders will rightly suspect they are a random union wish list. People will be asking exactly how much influence these unions have in the current Government.

“These reforms will further damage business confidence and take New Zealand backwards. They will only disrupt New Zealand’s settled and successful employment law.

“That’s not good news for jobs or wages for New Zealanders.”

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