Last month the government did what all governments do by pushing through significant changes pre-Christmas while people were focused on other priorities.

Minimum Wage Increase

On this issue the government stayed true to its policy position by announcing that the rate will increase to $17.70/hour on 1 April. We expected that level of increase because it reflects a “straight line” approach to moving the minimum rate to $20.00/hour by 1 April 2021.  If the increase had been lower, the government would have looked weak. Instead it has confirmed a further increase to $18.90 on 1 April 2020, and then to $20.00 on 1 April 2021.

 

Employment Relations Amendment Act 2018

On the other hand, the government backed off on some key proposals in its flagship Bill, notably allowing employers to opt out of multi-employer collective bargaining; and softening other aspects, such as limiting union access to employer premises.  As we’ve consistently said, there’s not much to worry about here.

Those provisions already effective are:

• Unions need consent to enter an employer's premises, unless a collective agreement is in force or bargaining has been initiated.
• Unions can initiate bargaining first.
• Employers may opt out of MECA bargaining, provided they have a good reason.
• There is no ability for the ERA to determine bargaining has concluded.
• Pay deductions may not be made for partial strikes.
• Reinstatement is again the primary remedy for unjustified dismissal.

The following provisions come into effect on 6 May 2019:

• Employers must pass on certain information to new employees.
• Employers must provide certain information about new employees to unions, unless the employee objects.
• Delegates must be allowed paid time to deal with union business.
• Bargaining must result in a collective agreement, unless there is a genuine reason not to.
• Pay rates must be specified in collective agreements.
• New employees must be employed on the terms of any applicable collective agreement for the first 30 days.
• Trial periods are only available to employers with fewer than 20 employees.
• Meal breaks are prescribed, in terms of their number, timing and duration.
• Part 6A (Transfer of Undertakings) applies to all employers.

Triangular Employment Bill

Triangular employment involves a person being employed by one employer, but working under the control and direction of another business, such as can occur when a business engages a person employed by a labour hire company.  In Select Committee, the key provision of the Bill was gutted by removing the ability of a contractor employee to be covered by the host employer’s collective agreement. The ability for an employee to join a host employer to their personal grievance against their own employer remains, but that would require prior approval by the Employment Relations Authority.

What’s Next?

The worst may be over.  The key issue of Fair Pay Agreements remains, but the government has already backed off by saying there will only be two of these before the next election. On the industrial front, strike action continues.  The next group to watch will be the teachers, but our impression is that commercial reality is starting to kick in and unions may be less confident about the aspirations they held a few months ago.