Employers change tune over controversial act

By BRIAN FALLOW

Most employers now believe the new labour laws will have no significant impact on their hiring levels.

In the latest six-monthly survey of hiring intentions by recruitment firm Morgan and Banks, 73 per cent of about 1200 respondents said the Employment Relations Act would make no significant difference, 22 per cent it would have a negative impact and 5 per cent that it would be positive.

The engineering and media industries, at 51 and 41 per cent respectively, were most likely to believe the act would inhibit their hiring.

Dr Kaye McAulay, of Morgan and Banks, said that given the almost hysterical talk that preceded the legislation it was amazing how quickly concerns were dissipating.

"There is still a slight concern that the militancy of the past might return, but most of the employers we deal with don't think so," she said. "Either their businesses are non-unionised, or they already have a reasonable working relationship with the union."

Overall, 43.7 per cent of employers surveyed expect to increase permanent staff over the next six months, while 13.6 per cent plan to decrease them.

The net positive figure of 30.1 per cent is the highest since Morgan and Banks began its twice-yearly survey in May 1997.

Optimism was strongest in the South Island (net 35.5 per cent), but the upper North Island recorded a net positive reading of 4.2 per cent.

Permanent hiring intentions were strongest among small businesses.