Major workplace and public holiday changes signalled by Govt

March 13, 2024

Employment laws are set to be ripped up as the Government sets off in a new direction in business and worker relations. (Source: 1News)

Workplace Relations Minister Brooke van Velden has unveiled her plans for this term, including overhauls of health and safety regulation and making changes to the Holiday Act.

The ACT deputy leader told the Auckland Business Chamber that the Government was "committed to cutting the red tape" holding businesses and employees back.

However, unions have described the changes as “horrifying” and a “total attack” on workers rights.

Delivering improvements to the Holiday Act would be a top priority, van Velden said. She said workers suffered under current legislation because uncertainty around entitlements led to underpayment; businesses suffered due to the complexity of compliance; and the taxpayer suffered because even Government ministries have run afoul of the Act.

"The costs of inaction are eye-watering."

Changes to the Act would be “workable” and “a material improvement on the status quo”, she said.

Health and safety laws were also in for a shake up, they were last changed following the Pike River mining disaster.

Van Velden said that costs of training for health and safety were “prohibitive” to increasing staff.

She also criticised the previous government in her speech, saying that “policies that were meant to benefit workers have only added to business uncertainty and the costs of doing business.”

She cited the minimum wage increase, the introduction of Matariki as a public holiday, and doubling of sick leave entitlements as examples.

Business NZ agreed, feeling that the previous government did not get the balance right.

“What you want is not more and more rules what you want is understand the rules are working and that people are healthy, safe and productive and I’m not sure that's working in the current set of rules,” said chief executive Kirk Hope.

However, First Union said the proposed changes were a “total attack on workers which is completely unwarranted”, emphasising the impact on those who don’t even earn the minimum wage.

“They don’t have sick leave, they don’t have annual leave, they can’t even join a union, they are totally being exploited,” said strategic project coordinator Anita Rosentreter.

The boss of tax app Hnry, which worked with sole traders, said some workers were vulnerable but most were not.

“This is 20% of the workforce that spans from freelancers, tradespeople, health and wellness workers, film and TV, and white-collar contractors in government,” said chief executive James Fuller.

Labour workplace relations spokesperson Camilla Belich said she was concerned there may be an “erosion of rights" in the changes.

“I would really be looking to the other coalition partners that the policy that's implemented is what the Government wants, and not just ACT party policy.”

Feedback would be welcomed on the proposed changes, said van Velden.

“I'd like to hear from the smallest family-run restaurants and the workers, right through to the multinational corporates, so we know we are getting the laws right.”

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