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Golden handshake problem needs more than quick fix

xWednesday 23rd Jun 1999

Richard Prebble

Media Release -- Governance & Constitution

Hon Richard Prebble CBE

Leader ACT New Zealand

MP Wellington Central

23 June 1999

Rt Hon Jenny Shipley

Prime Minister

Parliament Buildings

Dear Prime Minister

Golden handshake problem needs more than quick fi

xI am writing in response to media stories that the Government has set up some sort of Ministerial taskforce to look at the issue of golden handshakes of SOE executives.

The real cause of the problem is the Employment Court. It has become almost impossible to dismiss an employee even one who is dishonest or incompetent. Even employees who leave for their own reasons, such as another job, expect and frequently receive payouts.

Six years ago it was the warehouse labourer who was being awarded $25,000. So his manager claimed $60,000. So the managing director now claims six figure sums. Now it's reached the public sector.

National has been promising for over five years to fix the problem.

The only solution is to abolish the Employment Tribunal. To just fix up the public sector mess and leave the private sector in a mess would be wrong.

I give you notice ACT will seek to ensure that any reform also benefits the private sector employer.

Yours faithfully

Hon Richard Prebble CBE

Leader ACT New Zealand

MP Wellington Central

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