First shots fired over labour law reform

workersThe government’s proposed labour law reforms re-establish a kind of “compulsory unionism”, Business New Zealand says.

The peak business lobby group also says many provisions of the Employment Relations Reform Bill conflict with its objective of promoting “a high performing, high wage economy”.

Submissions on Workplace Relations Minister Iain Lees-Galloway’s bill, a key plank of Labour Party policy, closed formally on Good Friday and will appear on Parliament’s website in coming days.

Already publishing their submissions are Business NZ and Horticulture New Zealand.

Both are warning about an increased likelihood of industrial action, in conflict with another the bill’s aims – “to build productive workplace relationships founded on good faith”.

Instead, both argue the new environment would tip the balance too far in unions’ favour and that some of its proposed mechanisms were bound to create unnecessary conflict in the workplace.

Of particular concern is a requirement to continue bargaining “until all matters have been exhausted”, which could “unnecessarily prolong collective bargaining and increase prospects of industrial action”.

Business NZ also argues the bill breaches International Labour Organisation conventions on the right to voluntary participation in collective bargaining.

It suggests the bill’s provisions allowing unions to collect membership fees for every employee in a business, irrespective of whether they have chosen to join the union, “effectively constitute(s) compulsory unionism”.

Horticulture NZ’s concerns related especially to the compliance costs, complexity and in some cases impracticality of applying the bill’s requirements to the sector.

“The horticulture industry is made up of a number of small, inter-generational family businesses totalling around 5000 spread around the country,” it said.

“The ability for all 5000 businesses to be involved in collective bargaining is practically impossible.”

The education and workforce select committee has until August 1 to report the bill back to Parliament.

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