30 October 2012

Moderate changes to ERA

Proposed changes to the Employment Relations Act will improve but not significantly alter employment processes, says BusinessNZ.

Chief Executive Phil O’Reilly says the ‘good faith’ framework of the legislation will remain, with improvements to some of the details on bargaining and contract processes.

“Part 6A of the Act has caused difficulties for companies operating in the cleaning, catering, orderly and laundry industries. Requiring new contract operators to take on any staff working under the previous contract owner has been an unnecessary burden for a number of small businesses, and exempting businesses with fewer than 20 employees from this provision is a common-sense solution.

“Other changes around bargaining will also go some way towards more successful workplace relations.

“Not requiring parties to keep bargaining in circumstances where there is no likelihood of reaching an agreed solution, subject to the decision-making power of the Employment Relations Authority, and removing compulsory sign-up rules in collective agreements will be seen as appropriate changes.

“These and other moderate amendments to the Employment Relations Act should allow for better workplace communication and relations.”

ENDS

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