Labour changes closer to passing

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Labour law changes including the 90-day trial for new workers have come a step closer.

The transport and industrial relations select committee yesterday reported back the Employment Relations Amendment Bill and the Holidays Amendment Bill, recommending they pass with minor changes.

The bills have been strongly opposed by Labour, the Greens and the unions as an attack on workers' rights that swing the balance of power significantly towards employers.

The Government says the changes are moderate and bring New Zealand into line with other developed countries such as Australia and Britain.

The bills would extend the 90-day trial for new workers to all companies; at present it applies only to companies with fewer than 20 employees.

It would also allow workers to cash up a week of annual leave if their employers agreed, empower employers to demand proof of illness from a worker without first needing "reasonable" grounds, and change the wording for the test for unjustified dismissals from what a reasonable employer "would" do to what they "could" do.

Union access to a workplace would need employers' consent.

The select committee recommended that if a union asked for consent, an employer had one working day to respond. If consent was withheld, the employer had to give a written reason by the next working day.

The committee also removed the words "voluntary" and "informed" from the clause that would allow workers to cash up a week of annual leave, and for transferring a public holiday.

The report said the terms were unnecessary because good faith provisions applied, and they could be misinterpreted.

Labour and the Greens criticised the changes as "unfair and unjustified" in the minority papers.

They quoted the regulatory impact statement, which said cashing up a week of annual leave would have a disproportionately negative effect on workers who were already disadvantaged in the labour market.