Employment law and ACC changes spark anger

File photo / Mark Mitchell

Employment law, ACC and minimum wage changes which came into effect today have sparked a vocal response.

The introduction of the 90-day trial period for all employers drew criticism from unions, who said the new law meant workers could be sacked with no recourse to justice.

The Council of Trade Unions (CTU) said the 90-day law would impact particularly heavily on Maori workers.

CTU spokesman Syd Keepa said the changes would affect people at the margins of the workforce, such as in low-paid, casual and low-skilled jobs, where there were many Maori workers.

"What Maori workers want now is a decent plan to create jobs and lift incomes, not policies to make it easier for employers to sack them," he said.

Youth union movement Stand Up argued the legislation went against creating sustainable job opportunities for young people.

Stand Up spokesman James Sleep said the new laws would create a sticky labour market, where job security concerns might stop people from moving jobs.

"The Government has been selling the 90-day law to young people as a job creation initiative yet our youth unemployment is currently one of the highest in the OECD (Organisation for Economic Co-operation and Development), despite the 90-day, fire-at-will law already being in place for small businesses," Mr Sleep said.

"We also think this will lead to young graduates finding it even more difficult to get work in the area they studied for as there won't be the jobs available to them."

Other employment law changes today include the ability for workers to cash in their fourth week of annual leave, the ability for employees to negotiate the transfer of public holidays, changes to how average daily pay is worked out and doubled penalties for breaching the Holidays Act or Employment Relations Act.

Labour MP Darien Fenton said problems with the new laws were compounded for minimum wage workers, who today received a "miserly" 25 cent pay increase.

"On top of unfair labour laws that will pressure struggling workers to sell their well-deserved holidays, work when sick and worry about job security, the Government has dished out another blow to New Zealand's lowest paid."

Ms Fenton said the rise from $12.75 to $13 an hour was effectively a nil increase.

"It has already been absorbed many times over with GST increases, rising petrol costs, increased ACC levies, rising food and milk costs, cuts to ECE, increasing rents and power bills," she said.

The Service and Food Workers Union also criticised the increase, saying the minimum wage was not enough to live on.

Another April 1 change, the introduction of experience rating to ACC, also raised hackles.

ACC Minister Nick Smith said the new system, which involved businesses with good safety records being able to decrease their ACC levies, would encourage businesses to improve workplace safety.

"The averaged ACC levy system has meant businesses with good workplace safety have been carrying the cost of others that are less safe," Dr Smith said.

"This new system of experience rating is about better aligning ACC levies with risk and rewarding employers with good safety records."

However, Labour ACC spokesman Chris Hipkins said the change was another attack on workers.

"Far from improving health and safety for workers, the minister has introduced a system whereby business will financially benefit from not reporting workplace accidents," Mr Hipkins said.

"This system sets up workers to be placed in unsafe work environments and that is simply not good enough."

However, today also brought good news for some, with benefits, pensions and student allowances increasing by 3.75 per cent.

- NZPA