McAnulty KieranEMPLOYMENT RELATIONS (TRIANGULAR EMPLOYMENT) AMENDMENT BILLFirst ReadingKIERAN McANULTY (Labour): I move That the Employment Relations (Triangular Employment) Amendment Bill be now read a first time. I nominate the Education and Workforce Committee to consider the bill. A substantial and growing number of New Zealanders are employed in a triangular employment arrangement. While this is a legitimate form of employment a small but significant number of employers are exploiting the absence of law in this area for the purposes of undercutting wages and depriving those workers of particular conditions and rights that the rest of us who are in direct employment take for granted. This is unacceptable in this country and this practice needs to end.This bill will restore legitimacy to this essential part of the workforce: that of labour hire companies and temporary employment agencies. It is based on the principle of ensuring fairness in New Zealand's employment practices and it responds to what has become an increasingly alarming call to protect workers from exploitation which currently exists in some places where you find triangular employment in this country. There is a clear need for action in this area. This has only become more clear in the 10 years since this bill was originally drafted by former Labour MP Darien Fenton. I acknowledge the immense work she put into this bill at that time and her lifetime commitment to workers' rights. Triangular employment is where a person has a direct employment relationship with one entity the primary employer but works for another the secondary employer. Labour hire companies and temporary employment agencies have a legitimate place in the economy where they can provide labour to businesses that need it for a designated period and often at short notice or as part of a seasonal cycle.This bill is about restoring fairness to the workplace that services that part of the economy—rebalancing what have become increasingly unfair and exploitative practices in this area. Exploitative practice happens where triangular employment arrangements are used to avoid providing fair work terms to staff engaged in short-term contracts via another entity. I'm conscious many individuals businesses and groups are taking a strong interest in this bill. I want to acknowledge those that I've consulted with in preparing for introducing this bill today. They include workers employers and groups that represent them. I was struck by the willingness of all those I've spoken with to see action in this space. What is clear is that there is an agreement across both employers and workers that exploitative behaviour as a result of the absence of protections in the law related to triangular employment arrangements must be addressed. Our task is to reach agreement on the appropriate mechanism to achieve this without preventing those companies that operate legitimately. The proposed mechanism within this bill is twofold. It allows an employee to have the benefit of a collective agreement whilst working for a secondary employer if they have those terms in place. It also provides a mechanism under the Employment Relations Act to join at the discretion of the court a secondary employer to a personal grievance. The objective of this bill is to ensure labour hire companies and temporary employment agency workers have access to the same rights and conditions as the permanent employees they are working alongside. This is an important conversation which can be had with the seriousness and in the detail and with the intelligence it deserves at the select committee stage and I urge the members of this House to let that conversation happen. The labour hire and temporary work industry is important. There are businesses particularly in rural and regional areas around this country which rely on the business model of temporary workers. These may be businesses which are prone to seasonal fluctuations or small to medium sized businesses who may receive a contract for service which increases their need for labour at short notice. It is not the intention of this bill to undermine that business model. However there are stories of exploitation in triangular relationships which should be heard at select committee. There are also important stories of legitimate and good practice. A good practice protects workers. It ensures a fair day's pay for a fair day's work and it allows a person to prove themselves to a potential employer and gain valuable skills by taking up a role in a triangular work relationship.The goal is simple: job security dignity and an opportunity to progress in a working life predictable hours of work and income and the capacity to plan financially for themselves and their families. When a person works in a role for a long period of time that worker would receive appropriate entitlements or job prospects and the right to contest unjustified employment practices or dismissal. These are basic conditions to which everyone should be entitled. It is the intention of this bill to ensure that businesses operating in this way—a legitimate and good way—can continue to do so.I've been presented with many examples of such practice and voting this bill to select committee will allow these businesses to share their examples of good practice so that they can contribute towards the development of a mechanism that is fair—fair to workers and good employers. What this bill looks to address is exploitative practices which come about when the responsibility for a worker is split between a primary employer and a secondary employer. I've heard many stories of such exploitation. It is clear that the topic requires attention. Many in these situations are vulnerable and earn a low wage for their hours. An example of the way these types of contractual arrangements can be exploitative was seen in the Employment Court case Prasad v LSG Sky Chefs New Zealand Ltd. LSG Sky Chefs chose not to hire staff directly doing so through labour hire companies often way beyond the short-term assignments that these companies intended. This practice undercut the wages and protections negotiated in their collective agreement. In this instance the absence of law around triangular employment arrangements allowed them to pay significantly less than the market rate and avoid conditions that would have otherwise been available.Another example presented to me was of a woman who was on an extended assignment with a secondary employer. After informing this employer of her pregnancy she was almost immediately let go. This would normally be a breach of New Zealand employment law. However in this instance the woman had no rights. Selective employment practices on the grounds of discrimination have also been outlined to me. I have heard examples of secondary employers selecting their staff on the grounds of discrimination—a very clear message: no Pacific Islanders no women of childbearing age and no homosexuals. This is the sort of behaviour that would otherwise not be tolerated in this country. We mustn't continue to have the absence of protections in this area but we now have an opportunity to address this. The effect of this bill is that it would be targeted and reasonable. Temporary and labour hire workers would have the benefit of the same terms and conditions as those of staff in the existing workplace while working for the same company. That is reasonable. This will only apply where the secondary employer has a collective agreement in place yet it provides for consistency of treatment while continuing to enable businesses to fill their need for short-term workers. I urge members of this House to support this bill to the next stage to allow these issues to be dealt with at select committee. I do not anticipate that the conversation will be an easy one. I do expect that employers unions employment law experts and individual employees will bring valuable perspectives to the table which will highlight the important place of labour hire and temporary work agencies and employees in the economy and make clear that some change is required to restore the principles of fairness and integrity to that industry.Exploitative practices have no place in a country that prides itself on fairness in employment. Let's take this opportunity to do something about it. I commend this bill to the House.