Over the last 11 years the legislation governing industrial relations in New Zealand has been relatively consistent.  2011 Election policies however have become much more divergent with Labour in particular looking to introduce a whole new framework for industrial relations.

National

National propose no wholesale changes to the current Employment Relations Act.  Instead, if elected for a second term, they promise to continue to tinker with the existing legislation with a view to "increasing flexibility". 

They propose to:

• Introduce a Starting Out Wage for 16/17 year olds and some 18/19 year olds.  This would be set at 80% of the minimum wage for the first six months of employment.
• Amend collective bargaining rules – removing the requirement to conclude bargaining and the 30-day rule, allowing employers to opt out of MECAs and allowing pay reductions for partial strikes.
• Extend flexible working arrangements so they are easier to apply for.  The aim being to promote the benefits of flexible working.
• Review constructive dismissal rules.

Labour

Labour propose a radical shift in New Zealand's employment law framework.  The stated goal is to achieve better wages for workers. 

Labour would:

• Increase the minimum wage to $15 an hour within one year of being elected.
• Introduce Industry Standard Agreements.  This would be a form of collective agreement between unions and employer organisations in a defined "industry".  Rather than a typical collective agreement, an Industry Standard Agreement would set minimum pay and conditions for that industry.  Once agreed, it would set the baseline for all employees in the industry, not just union members.
  
  A Work Place Commission would be set up to determine what an industry comprises.  The Commission would also decide on minimum standards if the parties' negotiations cannot reach agreement.
  
  These are new concepts although many commentators have referred to their similarity to the old Industrial Award system with its Arbitration Courts.  Only broad policy however has been released so in the usual way the devil will be in the detail.  What for example will constitute an "industry"?

Labour also propose a number of changes to the existing law.

• Many of the amendments National have made to the Employment Relations Act would be repealed: trial periods would go as would restrictions on union access.  Reinstatement would be restored as the primary remedy.
• The Holidays Act would be amended to ensure employees receive 11 public holidays per annum.  This would ensure employees receive a public holiday for Waitangi Day and Anzac Day.
• Labour would strengthen the ability to collectively bargain for a MECA.
• The rights of casual employees and contractors would be improved, including the right for contractors to collectively bargain.
• The "Hobbit" law would be repealed.
• Parental leave would be extended.

In what is potentially a major change, Labour would make changes to current laws regarding restructuring.  They would introduce the right to strike in a restructuring situation and, in a very far-reaching move, propose to implement the recommendations of the 2008 Ministerial Advisory Group which would introduce statutory notice and compensation for redundancy.

Greens

The Greens would continue on similar policy lines as currently.  They would:

• Investigate a 35-hour working week.
• Increase the minimum wage immediately to $15 an hour and ensure it would remain at 66% of the average wage.
• Review the Employment Relations Act to enable multi-employer collective bargaining and a right to strike on social issues.

• A pay and employment commission would be established to reduce inequalities based on gender, ethnicity and disability.

Maori Party

Similar to the Greens, they support the immediate increase of minimum wage to $15 an hour, then increasing to two thirds of the average wage.  They would also support changes to strengthen employees' bargaining power.

Act

The Act Party have not made substantial changes to their policy in 2011.  They continue to oppose collective agreements and strong unions, and would repeal the Employment Relations Act.  They would also abolish the minimum wage.

This update has been prepared for information purposes only and not as legal advice.  For further information, please contact Peter Chemis, Hamish Kynaston, Kerry Smith, Sherridan Cook, Alastair Sherriff, Susan Rowe, Andrea Pazin, Rachel Steel or Iris Reuvecamp.