ERA only one part of the picture

Media release 24 January 2002

ERA only one part of the picture

The NZIER survey on the Employment Relations Act has highlighted the lack of contribution the ERA has made to growing jobs and the economy, says Business NZ.

Chief Executive Simon Carlaw says the survey is consistent with feedback he's received from NZ companies on the impact of the ERA - higher compliance costs, more time spent on negotiating agreements and greater complexity in staff management.

"The average New Zealander is the loser, since it's now harder for firms to invest in new jobs.

"But there is also a wider picture to be considered here. The ERA does not stand alone, but is part of a suite of legislative change that's made it more complex to operate a business, especially a small business.

"Legislative and other changes in health and safety and holidays provision and other measures in the pipeline will also erode New Zealand's competitiveness.

"The effects from these - as with the ERA - may not be immediately apparent. But bit by bit they will make it more difficult for New Zealand enterprise to reach essential growth targets that would deliver the social services that New Zealanders expect," Mr Carlaw said.

ENDS

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