Feared ERB clause may get revamp

By VERNON SMALL and NZPA

The Government may resurrect one of the most controversial clauses in its key Employment Relations Bill as part of a planned minimum code of employment.

The measure, guaranteeing employees' jobs when a business was sold or transferred or a job was contracted to another employer, has been dumped after strong opposition from employers.

They saw it as an enforced redundancy clause, which would have required them to pay workers for at least 12 months under such circumstances.

Unions also opposed the clause, fearing it would deter employers from signing collective agreements.

It was replaced with a requirement for a collective agreement to include a negotiated provision covering such arrangements.

Labour Minister Margaret Wilson said she would not agree to a Green proposal to reintroduce the provision into the bill.

But she was supporting work on an alternative "regulatory arrangement to govern that particular situation" to ensure it was specific to New Zealand.

Earlier, Associate Labour Minister Laila Harre said the Government was studying what should be included in a minimum code of employment - likely to cover paid parental leave, the minimum wage, youth rates and the continuity of employment issue.

Some issues had not been in the parties' pre-election policies, such as the "transfer of undertaking issue."

The "minimalist provision" in the bill still left some issues for low-paid workers, which could be addressed through the minimum code, she said.

The Opposition has labelled the changes "merely cosmetic."

The bill - to replace the Employment Contracts Act on October 2 - was reported back to Parliament after months of select committee hearings, involving more than 2000 public submissions.

Ms Wilson said it was "better than ever."

"Many employers have been worried by the intensity of the campaign against the bill. But they will find that the bill makes life easier, not harder.

"They will have less to fear from litigation, and more support in avoiding or solving problems ... In the end, employers' agreement is needed for any changes to be made."

She said the bill would put New Zealand in the mainstream of industrial relations in the western world.

But National's industrial relations spokesman, Max Bradford, said it was a step backwards and National would repeal it as a priority.

Only eight of 264 clauses had been altered by the select committee, he said.

"The Government has set up the country's biggest monopoly with this bill. Unions will have greater monopoly powers than Telecom or the electricity companies."

The bill will be pushed through under urgency next week.

Union membership will not be compulsory and only unions which can demonstrate they are independent of the employer will be able to negotiate collective agreements.

Strikes and lockouts are legal but the industrial action must occur at least 40 days after bargaining has been initiated.

The legislation strengthens access to mediation as the first solution to resolve disputes. A new Employment Relations Authority will be the second stop if mediation fails, and the Employment Court will be the last resort.

The Greens, whose support is crucial to the bill being passed, will vote with the Government.