18 October, 2011

Labour’s work and wages policy will boost economic performance

New Zealand largest private sector union, the EPMU, is welcoming the Labour Party’s work and wages policy (announced today) as an innovative and sustainable way forward to growing wages, productivity, and overall economic performance.

The Labour Party says if it forms the next government following next month’s general election it intends to strengthen the bargaining framework under the Employment Relations Act and provide beefed up protections for vulnerable workers, including dependent contractors.

“We need to modernise our country’s industrial relations framework so that we are genuinely working towards a high wage, high skill, economy delivering sustainable economic prosperity,” says EPMU national secretary, Bill Newson. “Our current labour law, the Employment Relations Act (ERA), attempts to address the inherent inequality of bargaining power that exists between employers and employees by promoting collective bargaining. Yet most workers have little or no bargaining power because they are stuck on individual agreements. We need a law that gives them genuine choice for collective bargaining coverage and fairer outcomes.”

The EPMU negotiates two large multi-employer agreements in the manufacturing and plastics industries. Labour’s policy is also about boosting multi-employer bargaining. “Strengthening collective bargaining rights for workers at the industry level is a positive move as it is the basis for genuine engagement between all parties on dealing with productivity issues, skill and wage growth, and business sustainability,” says Mr Newson.

The plight of courier drivers, many of whom are dependent contractors, has been highlighted in the news media in recent weeks. Dramatic falls in incomes have been reported as individual couriers have little or no bargaining power to counter the drive in the industry to slash costs.

“We have seen what contracting has done in some of our industries in terms of a decline in living standards,” says Mr Newson. “Labour’s approach to give statutory support to people like dependent contractors is a very good move as many are earning very low and unsustainable incomes for long hours of work. In reality many contractors are more like employees but with none of the rights and protections available under the Employment Relations Act.”

ENDS

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