Cash for leave back on agenda

By Andrew Laxon

National is reviving its plans to let employers sack new workers within a probationary period and allow workers to sell their holidays for cash.

Prime Minister Jenny Shipley relaunched the proposals - which National tried to bring in two years ago - in an election campaign speech yesterday to the Wellington Chamber of Commerce.

She said that National wanted to encourage employers to take the risk of hiring new staff and encourage employees to take up job offers.

"We believe probationary arrangements in the Employment Contracts Act need discussion and attention so that more new workers are offered jobs in a fair way."

Mrs Shipley said National had to revamp the Holidays Act, as a report this week showed it was designed for a bygone era.

Changes were also needed to personal grievance claims, which should not go against employers who made minor process errors in serious cases of employee misconduct.

Afterwards, Mrs Shipley suggested that a trade-off for probationary workers who lost their right to dispute a dismissal could be no stand-down period for the unemployment benefit.

"If you were going to create a quite different probationary period, you would have to guarantee the person who was taking on the job no disadvantage if that [job] was to be lost."

She said National did not have a fixed view on the issue but wanted to start a discussion with employers, unions and young people.

Mrs Shipley confirmed that tradable holidays would be back on the agenda if National won the election, subject to agreement from its coalition partner and various interest groups.

The national secretary of the Engineering, Printing and Manufacturing Union, Rex Jones, said National's plans would attack young, vulnerable workers.

National looks unlikely to win votes from undecided middle-ground voters on this issue, which caused a public outcry last year.

However, it represents unfinished business for many in the party and personal grievance changes are high on the wish list of many employers, who could otherwise vote for Act.