Wilkinson Kate: Employment Relations Amendment Bill (No 2) — Third Reading 
Wilkinson Kate: Employment Relations Amendment Bill (No 2) — Third Reading 
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Hon KATE WILKINSON (Minister of Labour) 
: 
 I move  
That the Employment Relations Amendment Bill (No 2) be now read a third time 
. I thank my colleagues for supporting the passage of this bill. I also thank the Transport and Industrial Relations Committee officials and submitters for their work on this bill. The employment reforms contained in the bill reflect the Government’s desire to install confidence in our economy and ensure that New Zealanders get the opportunities they deserve. We are focused on growing our businesses and creating more jobs. 
I am proud to have led the passage of this bill through the House. These changes are moderate pragmatic sensible and fair. They will help New Zealand’s overall productivity and give businesses of all sizes the confidence to seek new opportunities to invest and take on new workers. Over the past 4 months we have seen plenty of debate on these reforms. The focus has almost entirely been on the extension of the 90-day trial period and the requirement that unions ask permission before turning up at a worksite. The rest of the changes have not generated the same degree of attention as they are widely supported. 
I will spend some time discussing the importance of the trial period in particular. Shortly after the 2008 election trial periods for businesses with fewer than 20 employees were introduced. Rather than have the sky falling in as was hysterically proclaimed employers of small and medium sized businesses gained the confidence to hire new employees. It is a fact that without the trial period hundreds of New Zealand workers would not have the jobs they currently do. What we knew was that employers wanted to grow their businesses and invest in more staff but the fear of hiring someone unsuitable put them off. They did not want to face a personal grievance case if the relationship did not work out so they simply chose not to hire anyone. 
When we introduced the 90-day trial period the situation changed. This Government wants to see New Zealanders in work. We want them to succeed in life and we want them to back themselves to succeed in life. We want them to increase their standard of living and that of their families. We want businesses to flourish and invest in their communities not to be too scared to hire someone out of fear it will derail their business. 
The 90-day trial period has been very successful. An evaluation of the operation of trial periods revealed that 40 percent of employers who used it said they would not have or were unlikely to have hired that person without a trial period. Aside from this report I continue to receive positive feedback on this policy. One employer thanked us for introducing the trial period as it allowed them to hire three new farm workers all of whom were unemployed and two of whom had criminal records. There are countless other stories of labourers retail workers and even hairdressers getting jobs. Without the trial period these New Zealanders could still be sitting in the dole queue but instead they grasped an opportunity they might not otherwise have got and they embraced it. 
Extending access to trial periods is about giving all businesses the increased confidence to hire new employees. It is about giving people a chance. This is not a new policy; it is not untested. We know it works because the world has seen it work. We are not even close to leading the world in that regard. Trial periods in some shape or form are utilised throughout the developed world. This policy should have been introduced years ago. New Zealanders understand perfectly how a trial period works: they know that it is voluntary they know it must be agreed to in writing. They know it is their choice as to whether they want to avail themselves of a trial period and they know the benefits of it. 
Skilled or experienced employees are unlikely to ever use a trial period; they will not need to. This policy is not aimed at them. It is aimed at those on the margins of the workforce or those branching out into a new direction who simply need an employer to back them in a new or first job. By extending this provision these people can confidently ask any employer in New Zealand to give them a chance. This is a policy of opportunity and I am proud to have overseen its passage through this House. 
The bill also delivers on the Government’s manifesto commitment to make changes to union access provisions. It recognises employers’ rights to manage access to their workplaces in a reasonable way while still providing unions with the right to access their members. For many employers and unions this amendment will mean very little change to their current practices. This change is a common-sense approach and recognises that where some union representatives have abused the current law they will no longer be able to. Protections for union members are retained by ensuring that consent cannot be unreasonably withheld. Where an employer denies consent but does not provide a written explanation for the grounds for refusal within 2 days the employer would then be subject to a penalty action. 
The Government has made a number of improvements to the way the personal grievance system works in order to address concerns raised by employers and employees earlier this year. We are focused on producing a system that is fairer and more consistent. The changes include fixing the test of justification so that the minimum requirements of a fair and reasonable process are clearer. The Employment Relations Authority will be able to filter out vexatious cases which will help to reduce costs for users. The parties will also be encouraged to attend mediation before going to the authority. The bill provides greater certainty on the process and will reduce the time involved in resolving personal grievances. 
The bill also provides clarity for employers and employees on what communication they may have during collective bargaining and it will improve the operation and efficiency of the employment institutions used by employers and employees to help them resolve employment relationship problems. Finally the bill strengthens the powers of labour inspectors and gives them a range of tools to enforce compliance with employment legislation. Penalties under the Act have also been doubled. 
Overall the changes in this bill will make New Zealand’s employment relations laws fairer for employers and for employees. They provide the foundation for greater economic growth and the creation of increased employment opportunities. I commend this bill to the House.