Attitudes To The Change In Employment Legislation

Hospitality Association Of New Zealand

Members’ Attitudes To The Change In Employment Legislation

Introduction

In February 2005, the Hospitality Association surveyed its members on the impact of changes to the employment legislation particularly the Holidays Act. Members come from across the hospitality industry including hotels, motels, major accommodation providers, lodges, taverns, bars, night clubs, restaurants, cafes and off-licences.

An excellent response was received with 528 responses representing over 10,000 employees. The industry is very clearly not happy with this legislation. 80.5% describe the Holidays Act as having a negative or extremely negative impact on their businesses, while 79% described complying with the Act as difficult.

Significantly, the Act has resulted in many businesses not opening on public holidays. Over Christmas 2003/04, hospitality businesses closed for an average of 1.5 days. As a result of the changes, this increased to 2.9 days in 2004/05.

Those that did stay open applied on average a 14.5% surcharge.

Key Results • 66.5% closed on public holidays. • average days closed on public holidays - 2003/04 – 1.5 days - 2004/05 – 2.9 days • 53.4% reduced staffing on public holidays • 38.6% operated limited hours on public holidays • 33.5% applied a surcharge (note: 66.5% chose to close) • only 4-5% indicated that the surcharge actually covered additional costs • 38.1% say Holidays Act has had an extremely negative impact on business • 1.5% say Holidays Act has had an extremely positive impact on business • 47.2% describe complying with the Holidays Act as frustrating/disruptive • 6.6% describe complying with the Holidays Act as no problem at all. • 51.5% indicated the public were positive/extremely positive about the surcharge • 3.4% indicated the public were extremely negative about the surcharge • 38.1% indicated the Holidays Act had an extremely negative effect on business • 1.5% indicated the Holidays Act had an extremely positive effect on business • 799 new positions have been created due to business growth over the past 12 months – an average of 1.6 new positions per business • redundancies over the past 12 months amounted to an average of 0.4 positions.

ENDS

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