Comparing New Zealands Labor Relations Acts Ideologies
The statute viewed employment relationship based on equal bargaining power between employer and employee. The ECA act brought significant changes towards employment relationship registration from previous acts. The act was repealed in October 2000 by the Employment Relations Act 2000, (ER). The value and changes brought by ER Act have faced divisive reviews from different sectors; some have hailed it for its approach to the labor market regulations. Many changes have occurred concerning the labor market. a survey by Maloney, an economic analyst, showed that ECA has responsible for more than one-sixth of the increase in employment from 1991 to 1994. The factors of that influence pressure of employees towards the employers if are favorable, the employees will not feel the burden to employ more people.
Improving the productivity of workers individually and reduced wage pressures on employers were very important factors towards increasing employment. Improved country’s GDP gave business community confidence to invest more and consequently increase employment. Changes that were made to the composition of wage were very crucial towards improved employment rates. Statutory recognizing union's procedure was removed. The government stopped data collection on the union's membership (Castle 1996). The concern of welfare was around the individual worker, belong to a union was a choice from many. After three years of the Act enactment union had lost over twenty percent of their members. A survey by Ballard showed that with unions reduced power, in negotiations ended with fewer concessions. If the ECA would have increased productivity of the employees, then an employee would have been attracted to the employer thus attracting a higher pay.
Change in type and content of employee contract After ACA enactment in 1991, individual employment contracts dominated the labor market. Many surveys carried out showed that employers preferred individual contract for the employees. The content of many contracts was revised to be in line with the ACA scope. NZIERS survey revealed the many changes brought by the Act were the change in content. The new guidelines trial period employers will have to give reasons for dismissal to the employees and disputes will have to be heard within three weeks of being lodged (Murchison 2018). Each party involved in the dispute will be allowed representation with an exception of lawyers. The aim of the mediator will be for both parties to agree. Where no agreements are reached, the referee will have to make a final decision that is binding and cannot be repealed.
Penalties can be awarded but will be capped. The long measures taken will extend to dependent contractors, working hours and right to representation. Dependent contactors will be protected by a statutory that will be produced for those under employers but do not access employee legal protection currently( Murray 2017). Better options and adequate remuneration for people who work under forty hours a week to be investigated and solutions established within a year. labor inspectors resources and scope to be extended with an increased number of them to be implemented with to ensure they are effective. Youth rates are to be abolished. equal pay to all will be implemented, women will have access to court processes claims settlement and collective bargain agreements. Private contractors will be granted the right to bargain collectively and organize themselves the party promised in a years’ time vowed to introduce fair pay agreements that will set basic, fair conditions for employment across all industries according to the standards that govern that specific industry.
Compensation Labor party has proposed to increase the minimum wage from the current $15. 75 an hour to $ 16. 50 an hour. Without a doubt, ECA changed labor relations landscape in the country. Before proposed labor changes proposed or party will bring drastic changes from current laws governing the labor market and employment relations. There are clear similarities and differences in ideologies and principles of the two set of labor laws. Unionization The ECA labor laws were based on an individual worker. The negotiations were based on the individual worker and negotiations were centered on the employer and the employee. By 1995 unions had collapsed by half and represented less than a quarter of the workforce. Labor party proposes both employee and union empowerment. The entertainment and the film industry that had been barred from unions will be given a chance to form unions or join unions.
an employer will be denied powers they had over for dismissal in the trial period. Unions that were rendered inactive by ACA laws will be favored by the new proposed laws to initiate negotiations on behalf of their members. The only requirement will be to inform the department of labor and not to disrupt public interest. The new policy will safeguard striking employees against dismissal for engaging in a strike. Workers have will protect robustly in the new regulations unlike in ACA. Inequality and employment growth ACA aimed to increase work flexibility across all industries. The proposed regulations have also set laws that cut across all industries to foreigners and non-foreigners. Recommendations Protection through minimum requirements There have been changes that have occurred with an aim to protect New Zealand workers with minimum employment standards.
This, however, has not worked as expected because modern business practices environment has been designed to avoid suck kind of protection. Any reforms expected to yield results must ensure employment rights are to be extended to everyone who performs work not necessary employee based. The requirement for anyone to get work should be low to increase flexibility. Decent working conditions Collective bargain agreement will be a solid foundation to start restoring the labor market, but further reforms will be required. L. , & Kuruvilla, S. Industrial relations system transformation. ILR Review, 52(1), 3-21. Lamm, F. Durdyev, S. , & Mbachu, J. On-site labour productivity of New Zealand construction industry: Key constraints and improvement measures. Construction Economics and Building, 11(3), 18-33. Castles, F. Capitalist networks and social power in Australia and New Zealand.
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