FIRST Union General Secretary Dennis Maga said he has received a notice from the Ministry of Business, Innovation and Employment (MBIE) that confirms that the union will be omitted from consultation on Minister Brook Van Velden’s intended changes to employment law that would encourage the misclassification of permanent employees as contractors.

Mr Maga said that FIRST Union should be a major voice during consultation on a "dangerous" law change that he believes is being rushed through as a result of FIRST and E Tū’s court case on behalf of four current Uber drivers, which found they had been misclassified as contractors by Uber. The Employment Court is due to report back on Uber’s appeal of the original verdict in the coming months.

"MBIE representatives have informed us that due to the "time available", engagement has been limited to a "small group of stakeholders", and FIRST should "channel our thoughts" through the Council of Trade Unions," said Mr Maga.

"There’s no reason for an expedited timeline for regulatory assessment of a law change that could have far-reaching negative consequences on our economic wellbeing as a country and the rights of workers to access justice."

"This represents a sham consultation, a foregone conclusion, and an attempt to shut down objections to an incredibly dangerous law change that would permit dodgy employers to continue misclassifying permanent employees as contractors to save money and reduce workers’ power."

Mr Maga said ACT Minister Brook Van Velden was showing wilful ignorance and pettiness in refusing to engage with critics of the Bill. The union understands that the Minister has already met directly with representatives of Uber in May this year(1), and Mr Maga believes that Van Velden is intervening politically on behalf of the mega-multinational, who have consistently exploited lax labour loopholes around the world that disempower drivers and increase the precarity of work.

Minister Van Velden’s Ministerial Diary disclosure for March 2024 also shows that she has recently taken meetings with a "taxpayer" lobbyist group funded by private donors, which Mr Maga believes shows that she is keen to engage with groups who already agree with her on proposed neoliberal reforms in her portfolios.

"We’re seeing a similar process here to how the Police Association have been silenced during the consultation on firearms law reform, which indicates that the ACT Party is shutting their doors to experts when they have ‘inconvenient’ opinions," said Mr Maga.

The "status quo" that the Government is seeking to perpetuate and enshrine in law would enable employers to misclassify permanent employees as contractors and allow them to be paid less than minimum wage, Mr Maga said, with no entitlements to sick leave or holiday pay and no right to join a union, leaving them at risk of exploitation.

"This is the kind of lawmaking process we’re used to seeing from corrupt and dictatorial politicians in developing countries who rule by force - we should expect better in Aotearoa," said Mr Maga.

"It’s like holding consultation over medical treatments in the health sector and only inviting the drug reps, while keeping doctors and nurses out."

"Minister Van Velden is sending a strong signal that she effectively intends to intervene in the court case on behalf of Uber to pre-empt the result of their appeal in the Employment Court - she’s a rubber stamper and a lackey, and this is called cronyism."

Mr Maga said FIRST and E Tū are expecting the result of Uber’s appeal in the Employment Court in the next month or two, and the Minister and Government should wait until that outcome provides insight after months of assessment and consideration of the issues that Van Velden’s proposed law change seeks to expedite without adequate assessment from expert stakeholders.

"The CTU will do a great job of explaining why this law change is so damaging and regressive for tens of thousands of workers, but they have the impossible responsibility of collectively representing numerous affiliates across the workforce who will all deal with the fallout of this decision in different ways," said Mr Maga.

"Uber might be the catalyst behind the Government’s law change, but a relaxing of contractor law is openly sending a message to other opportunists that powerless New Zealand workers are ripe for exploitation and have no means to challenge it in a court of law."

Additional information:

(1)Minister Van Velden’s public diary disclosures have only been updated to March this year. RNZ reported this week that the Minister is "planning to meet" with Uber, but Mr Maga says he understands that at least one meeting has already taken place.

Email from MBIE to FIRST Union (received 25th June, 2024)

Kia ora Anita [Rosentreter; FIRST Union strategic project coordinator]

Thanks for your e-mail. We really appreciate your interest in this area of work.

Unfortunately, in the time available, we’re needing to keep this engagement to a small group of stakeholders. We are meeting with CTU representatives, so it would be great if you could make channel [sic] your thoughts through CTU so they can bring those to the meeting.

Appreciate your help with this.

Kind regards,

[MBIE Policy rep]

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