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Employment Law: Government Buys A Fight With Unions

July 28th, 2010

There isn’t going to be any backdown on this one - the Govt is prepared to take on the unions and John Key is backing himself on employment law changes. Key says it’s his responsibility to help people get jobs, and this goes to the core of his reasons for being in politics. Key feels deeply about giving people opportunities to get ahead - like the immigrant who delivers pizzas to his home who wants a better job and says the 90-day law will help him get one. Key’s body language says he is determined to do something about it. As he sees it, extending the 90-day probation period to cover all businesses is one way of doing something. Trans Tasman also notes clues to the PM’s political mindset on these big issues can be found in his frequent references to the Holyoake Administration, renowned for its pragmatic centre-right practices.

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The 90 day law currently covers businesses with 19 or fewer employees and Ministers say it’s been a success since it was introduced in 2008. A Labour Department survey shows 74% of workers taken on under the probation period law continued with the same employer when their 90 days ended; unions say one in five didn’t and are sifting through cases to prove their contention it’s “fire at will” legislation. The Labour Party has gone ballistic over it, seeing dangerous signs the Govt is reverting to true blue Employment Contracts Act legislation which it says is designed to appease National’s supporters with time-honoured union-bashing tactics. A raft of other changes affect holidays, sick leave - employers can require a certificate if an employee is off for a day - and union access to workplaces which is going to have to be with the agreement of the business owner. There are going to be fiery debates when all this gets to Parliament later this year but the Govt will have its way and it isn’t worried about losing votes on this issue - voters who are upset about it don’t support National anyway.

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