CTU media release

16 May 2009

CTU wants action on Redundancy Report

The CTU is calling for Government action on a major report recommending statutory redundancy compensation and provision of redundancy support. The Public Advisory Group on Restructuring and Redundancy finalised its report in June 2008. The Minister of Labour Kate Wilkinson has advised the CTU that the report is under consideration.

CTU Secretary Peter Conway said: “We want to know what the Government intends to do with the recommendations given the scale of redundancies now affecting workers in New Zealand.”

The Advisory Group included representatives from Business NZ, the State Services Commission and the CTU, and was established in 2007 to examine the adequacy of redundancy laws and provisions in New Zealand workplaces.

The Group agreed that the government should consider the introduction of a statutory requirement for redundancy compensation and other entitlements incorporating a) notice of redundancy termination to the affected worker, b) compensation based on length of service c) a maximum level of statutory compensation, and d) provision of redundancy support and other active labour market mechanisms to affected workers and organisations.

The Report listed a number of options including a rebate for small firms to assist with the cost of redundancy compensation for workers laid off.

Conway said: “The CTU agrees that the main focus today should be on finding jobs and/or providing training support for workers made redundant, but the reality is that many workers are getting no redundancy pay and are receiving inadequate notice of dismissal. This report made some practical suggestions to address this issue and should not be shelved.”

The full report can be viewed at http://dol.govt.nz/PDFs/restructuring-and-redundancy.pdf

ENDS