UnitedFuture Secures Clarity For Contractors

UnitedFuture leader, Peter Dunne, said today he could no longer support The Minimum Wage (Contractor Remuneration) Amendment Bill because of ongoing concerns with the Bill as drafted as well as receiving undertakings from the Minister of Workplace Relations and Safety to address those concerns.

"My decision on this Bill followed constructive discussions with both the Hon David Parker and Hon Michael Woodhouse as well as many members of the public who have contacted me about this Bill," said Mr Dunne.

"While the intent of this Bill, to provide protection to vulnerable contractors who fall outside the usual bound of the employee/contractor relationship, is sound, in the end I did not consider it to be the appropriate mechanism to provide the necessary protections to vulnerable contractors.

“This is especially so as the Bill blurs the distinction between contractor and employee in such a way that it could result in an unintended consequence of confusing the interpretation of employment law in those sectors identified in the Bill to the extent of actually placing the contractor in a worse remunerative position.

"There is also a lack of clarity as to how pervasive the problem facing contractors is, as there is, on the face of it, little empirical evidence to suggest there is widespread exploitation of contractors.

"Vulnerable contractors do not win in that situation; the only ones who do are employment lawyers," said Mr Dunne.

In light of this, Mr Dunne sought and received an undertaking from the Hon Michael Woodhouse as the responsible Minister to take meaningful steps in addressing the problems that contractors may be facing.

“Minister Woodhouse has confirmed to me today that he has asked the Labour Inspectorate to provide an assessment of the extent of any contractor exploitation that they have investigated or suspect is happening within the workplace,” Mr Dunne said.

“Further, Minister Woodhouse has asked the Labour Inspectorate to identify any issues around resourcing for investigating breaches and has confirmed to me that should any issues be identified that these issues will be remedied through any necessary legislative, regulatory or other appropriate mechanism.

“Finally, the Minister has agreed to address the adequacy of existing definitions of what constitutes an employee and contractor in the modern working environment.

"On the basis of that assurance and in light of the concerns I have about the mechanisms in this Bill, I am no longer convinced that it is the answer to the problem it has set out to solve.

"UnitedFuture wants New Zealand to be a place where anyone can undertake a day’s work and be remunerated reasonably for it.

“Today we have taken a step forward on that goal”, Mr Dunne said.

Ends.

© Scoop Media