Figures Confirm ERA Starting to Hurt Business

Friday 25 Jan 2002 Richard Prebble Press Releases -- Employment

The ACT Party's prediction that the Employment Relations Act would have a negative impact on business has been confirmed by two reports this week, ACT leader Richard Prebble says.

"A survey by the NZ Institute of Economic Research shows 28 percent of businesses report that the ERA has had a negative impact on their performance - that's more than five times the number who say the Act has impacted positively on their business.

"Looking ahead to October 2003, the survey shows the number of businesses who expect a negative impact from the ERA is even greater.

"The survey also found the cost of complying with employment law has risen for almost half the organisations questioned, while less than 1 percent said compliance costs have fallen. Just as the ACT Party predicted, the ERA has added to employers' costs.

"This survey comes a day after figures showing the number of strikes for the September 2001 quarter was more than for the whole of 2000.

"It's interesting to note that the Insurance Council says, in relation to insurance fraud, that it takes people about a year to exploit any changes in the system. It's the same with employment law. What we are seeing with the ERA is that people are now starting to work out how they can use the Act to exploit employers.

"No one knows what the number of strikes is going to be this year, or when the compliance costs of the Act will start to stabilise," Mr Prebble said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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