PSA MEDIA RELEASE

October 9, 2008

PSA supports having guaranteed redundancy payment for laid off workers

The Public Service Association supports a law change that would see all workers receive a redundancy payment if their job was cut due to restructuring by their employer.

The Minister of Labour, Trevor Mallard, has today released a report on restructuring and redundancy by an advisory group that included union, business and public sector representatives. It recommends a statutory minimum for redundancy and Mr Mallard has indicated government support for the move.

"With the world gripped by the worst financial crisis since the 1930s, job security is an issue for all workers," says PSA National Secretary Richard Wagstaff.

"We support changing the law so that every worker who loses their job, because of restructuring, receives a guaranteed minimum redundancy payment."

Richard Wagstaff says public sector workers, in particular, recognise the need to have guaranteed redundancy provisions.

He says job security is a real concern for public sector workers who for the last year have been demonised as "bureaucrats" and were targeted again yesterday by National leader John Key when he announced his plan to slash KiwiSaver to pay for tax cuts.

"Public service workers are understandably nervous about their jobs," says Richard Wagstaff

"They've had a year of bureaucrat bashing from National to justify cutting public services that they deliver in towns and cities throughout the country," says Richard Wagstaff.

He says despite the fact that the overall public sector has grown by 11 per cent since 2000 compared with a 13% increase for the labour market as a whole, John Key continues to make false claims about the growth of the public sector to justify cutting public service jobs.

"The majority of core public service workers, who belong to the PSA, have redundancy provisions negotiated by the union," says Richard Wagstaff.

"But there are many public sector workers employed by state-funded agencies who are not entitled to redundancy if their job is cut."

"They will welcome having redundancy payments guaranteed by law," says Richard Wagstaff.

ENDS

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