Wilkinson Kate: Employment Relations Amendment Bill — In Committee Recommittal Third Reading 
Wilkinson Kate: Employment Relations Amendment Bill — In Committee Recommittal Third Reading 
[Volume:651;Page:463] 
Hon KATE WILKINSON (Minister of Labour) 
: 
 I move  
That the Employment Relations Amendment Bill be now read a third time 
. I firstly thank the officials for their hard work advice and efforts in bringing the bill to this stage to the third reading. 
The Government is committed to improving employment opportunities for all New Zealanders. The proposed trial period enacted by this bill will allow greater certainty and flexibility for small to medium businesses when it comes to taking on staff. Additionally employment opportunities will increase for some marginalised groups of employees who are struggling to break into a crowded market. This bill has been drafted carefully and reasonably and with caution to ensure there are safety mechanisms so that workers are not exploited. 
I remind the House that we have specifically retained the provisions of good faith. The legislation is subject to the overriding principles of good faith. Perhaps I should remind the House what good faith actually means. Good faith requires the parties to an employment relationship to be active and constructive in establishing and maintaining a productive employment relationship in which the parties are among other things responsive and communicative. Good faith requires an employer to provide to affected employees access to information relevant to the continuation of their employment and the decision and to give an opportunity to comment. This bill expressly protects and is subject to that overriding provision of good faith. 
The trial period under this bill is also subject to agreement; it is not compulsory. It is subject to the prospective employee wanting to be given a go—wanting to be given the opportunity—to get his or her foot on the employment ladder. This bill is subject to existing protections under human rights legislation— 
Hon Annette King 
: Like what? 
Hon KATE WILKINSON 
: —like racial discrimination sexual discrimination and duress. It is also subject to the protections afforded by health and safety legislation. It is subject to those protections. And the provision of mediation is available through the Department of Labour. 
It is interesting to note that the editorial in the  
Otago Daily Times 
 this morning said: “New law creating opportunities”—and that is exactly what it is meant to do. About objections the editorial states: “Such objections however are astray”—objections are astray—“because the new law is moderate sensible and crucially will encourage the creation of jobs.” I repeat: “the new law is moderate sensible and crucially will encourage the creation of jobs. 
The editorial goes on: “several safeguards have been added without undermining the basic intent. … This move is especially important in a recession hence the urgency with which National is proceeding.” These are the words of the  
Otago Daily Times 
 editorial. It goes on: “Employers at the moment will be particularly wary of risk because an employment mistake can decimate a small business even at the best of times.” But it goes further than that; it states: “Imagine the benefits if just 2% of the many thousands of small businesses in this country decided that they could now take the gamble on an extra staff member.” 
The editorial further goes on: “At present many small business owners say it is better not to employ anyone than take the risk of a dud. Yes there are dismissal procedures under current employment law—and even a Clayton’s probation provision in the Employment Relations Act.” We have heard throughout the debate that we already have a probation period. Yes but this is a Clayton’s probation period and now we have a true trial provision that will give employees the opportunity to get their foot in the employment door. 
Why have we limited the legislation to small businesses—those with fewer than 20 employees? Again the  
Otago Daily Times 
 states: “But what small business person has the time energy expertise and expense to go through the difficult processes? And how much damage has been done in the meantime? The new law as well as improving overall job creation prospects promises to enhance the outlook for those who find it especially hard to get a job; the young immigrants those out of the workforce for a long time minorities.” Those are not our words; those are the words of the  
Otago Daily Times 
 editorial this morning. 
We are aware that there are some unscrupulous and unfair employers but bad employers are likely to ignore many of the current rules anyway. And I say that in relation to those unfair bad unscrupulous employers we will condemn any employer who is unscrupulous and unfair and who abuses this process. 
This bill is a win-win for employers and for employees. It is not about taking away rights; it is about giving opportunities. This bill protects the rights of employees. It gives businesses the confidence to take on new employees. The bill dramatically reduces the compliance costs associated with recruitment and dismissal for small to medium businesses and the compliance costs for all businesses resulting out of trivial and unnecessary personal grievance actions. This is a moderate considered fair bill and I commend the bill to the House.