Labour bill raises boss' ire

By FIONA ROTHERHAM

"Why the hell am I in business?" was the plaintive call from an employer when the new industrial relations regime came under debate at the Employers & Manufacturers Association Business Environment 2000 conference in Auckland yesterday.

The employer said he would consider shifting overseas if Labour introduced too much restrictive legislation which hindered his company's global competitiveness.

Key to the Employment Relations Bill that will replace the Employment Contracts Act is a requirement for good faith bargaining.

The Employers Federation has said the "devil of it is in the detail."

The legislation adds significant and new requirements and obligations on employers, said federation chief executive Anne Knowles.

Workplaces with strong union representation and a history of collective bargaining might notice little difference, she said.

"Others may face quite dramatic changes in the bargaining process that they might be used to and yet another group, where their employees who are union members opt for multi-employer bargaining, might find themselves reliving the '70s or '80s."

The core good faith obligations outlined in the bill apply to collective bargaining only. Employers and unions are required to provide "relevant" information during bargaining.

Russell McVeagh partner Philip Skelton told conference delegates that information which is commercially sensitive or might have an impact on a company's share price might be required to be handed over.

"You could have the situation where you're employing a new CEO. That arguably will have a significant impact on the business. Does that mean you are required to consult with the union on that appointment?"

Both Mr Skelton and the federation warn that huge resources will have to be put into the Employment Relations Authority being set up to deal by mediation with any employment problem.

An associate professor at the Auckland University department of management and employment relations, Peter Boxall, said authority members would have the ability to act as investigators and should be able to resolve disputes more quickly and cheaply than the Employment Court.

Mr Boxall, while supportive of the bill, said the idea of good faith bargaining was an "ambiguous concept."

Whether it was needed was a moot point., he said.

"What is needed is the encouragement of collective bargaining and more union representation in low-skilled areas."