We've said our piece so let's adapt and move on

MICHAEL BARNETT says concessions to be made on the Employment Relations Bill must be accepted in "good faith."

"When the going gets tough ... Applying this adage to the business community, the time has arrived for business to move on from fighting ideological battles with the Government every step of the journey to the next election.

Through the cut and thrust of reform programmes introduced by successive Governments, business has been forced to adapt and be innovative just to survive. Once again, smart business will quickly learn to adjust to the new regulatory and political environment being ushered in by the Coalition.

The Government needs business more than it realises. After all, successful businesses generate the tax revenue that pays for the infrastructure, social services and support for many arts and cultural activities.

Business knew - or thought it knew - what was coming with the change of government last year. Changes in accident compensation, tax increases, employment relations and a more "hands-on" approach were signalled well ahead.

But it is fair to say that business organisations did not realise how restrictive the new employment relations environment could become until they saw the detail of the legislation.

We all have an opinion on the Employment Relations Bill and offered an interpretation of its impact on the business environment and employment prospects. Some harsh and uncompromising claims have been expressed.

The Government has made it clear that it is not going to stand down on its ideology, but it has stressed that it wants to work with business for a more prosperous and decent New Zealand.

I believe the Government has listened to business, and am optimistic that constructive and positive changes to the employment relations legislation will be conceded, such as:

Enabling the status quo to prevail in the dependent contractor arrangements.

A more balanced "good faith" regime of obligations on the part of both employers and unions.

A more objective test on employers to provide information that is directly relevant to a bargaining situation.

Tightened confidentiality clauses to protect commercial information.

Provision for common sense to apply when unions seek to enter a workplace for recruiting purposes.

Clarification of clauses to restrict "communication" between employer and employee over attempts to influence bargaining outcomes.

The business community must accept in "good faith" the concessions that will be made and move on. Let's acknowledge that with these changes the political environment for doing business will be as bad or good as it gets, and it is time for businesses to refocus their strategies and business plans - for example, to take advice on the new level of communication that will be required around employment issues and hiring staff.

A global market awaits for a growth-led economy: Business must not get distracted by the domestic situation and fail to seek out the window of opportunity in world markets. World demand is strong, not just for commodity products but in tourism-related, processed foods and wines, technology and marine industries.

The world business cycle is positive for growth, for developing exports, for driving up the performance of a business internally and externally.

Let's think of achieving a bigger economy in which more businesses become established, successful exporters and established exporters build a bigger volume of trade.

How the Government can support business: At a Chamber of Commerce post-Budget luncheon, Prime Minister Helen Clark spoke about a vision for NZ which saw the economy growing sustainably. Business agrees such a vision is within our grasp if, as a nation, we determine to buy into it.

There are three things that the Government can do to empower business:

First, it must confirm the employment relations legislation as soon as possible; to give business the certainty of the environment they will be required to operate in.

Second, it must set benchmarks and performance targets to measure the progress of the economy under the new legislation. For example, let's determine May's labour force participation rate and set an increased target to be achieved every six months. The number of industrial stoppages should be targeted to come down, if the legislation is to be a success and add value to the economy.

If within six months or a year, the targets are not being achieved, the Government should be committed enough to make changes.

Third, the Government must integrate the employment relations regime with other business-development policies into the vision for sustainable economic growth.

Business and the Government are on the same wavelength in wanting sustainable economic growth. The detail of what each must do to make it happen is what we must work harder at, if either side is to forge a team to make a difference.

* Michael Barnett is chief executive of the Auckland Regional Chamber of Commerce and Industry.