Boyack RachelEMPLOYMENT RELATIONS (PROTECTION FOR KIWISAVER MEMBERS) AMENDMENT BILLFirst ReadingRACHEL BOYACK (Labour—Nelson) on behalf of Dr Tracey McLellan: I move That the Employment Relations (Protection for Kiwisaver Members) Amendment Bill be now read a first time. I nominate the Finance and Expenditure Committee to consider the bill. Madam Speaker you'll note that I am not Dr Tracey McLellan and it is a pleasure to take a call on behalf of my good friend and colleague and to present on this members' day this bill that she has drafted which is the Employment Relations (Protection for Kiwisaver Members) Amendment Bill.Today I'd like to talk about a bill that impacts the working lives of millions of New Zealanders. It's a relatively simple but effective bill that will restore financial protections taken away by the National Government in 2008 ensuring New Zealanders aren't disadvantaged in the golden years of their retirement. We firmly believe this is a practical step in the right direction for employee rights and financial planning.Let's start with KiwiSaver. Since its inception in 2007 KiwiSaver has become an integral part of financial planning for around 3 million New Zealanders. That is a lot of us putting aside some money every week for the future looking forward to what will hopefully be a comfortable retirement. Because KiwiSaver contributions are generally made over many decades any small advantage gained or disadvantage incurred at the outset of employment can have a significant cumulative effect later on down the track. It's important then that we make sure KiwiSaver is a fair and robust scheme—this was the intention when it was developed. But in 2008 just a year after KiwiSaver was established the National Government of the day took away some key protections for those enrolled in the scheme. As it stands an employer isn't legally required to offer the same terms or benefits to someone enrolled in KiwiSaver as they do to someone who is not. What that means is that employers can offer employees lesser terms fewer benefits or even reduced chances for training and promotion simply because they are enrolled in KiwiSaver. This is patently unfair and undermines the notion of equal opportunity that New Zealanders value.I acknowledge that most employers do the right thing but there is room under the current law for some to take advantage and cut corners and when such opportunities arise a small number of people will do just that. This piece of legislation seeks to close the existing loopholes and ensure parity for employees regardless of their retirement arrangements. It seems almost absurd that these loopholes are in place currently but it was National's Employment Relations Amendment Act 2008 that opened the door to this inequity and it's up to a Labour Government to close that door and ensure a fairer KiwiSaver system. That National bill was a significant piece of legislation that enabled employers to ride roughshod over many employee rights. So it's not too surprising that the last provision of the amending Act the consequential amendment to the KiwiSaver Act 2006 was largely lost. It is this consequential amendment that we are seeking to rectify with this member's bill.This is a relatively straightforward bill but I would like to go over some of the key elements. Most significantly the bill seeks to ensure equal terms of employment. It mandates that employers must offer the same terms of employment to employees who are KiwiSaver members as to those who are not—if that sounds simple and fair that's because it is. The bill amends the Employment Relations Act 2000 to introduce what is known as an adversely affected" test. This is essentially a checklist to help figure out if an employee is being treated unfairly just because they have chosen to be part of the KiwiSaver scheme. The test looks at various aspects of a worker's employment terms such as salary work conditions benefits opportunities for growth and so on. If any of these areas are lacking in comparison to employees without a KiwiSaver account that's a red flag and action needs to be taken.The "adversely affected" test is an important component of this bill so I'd like to delve into it a little bit here. Obviously it is important to determine who is being discriminated against because of their superannuation choices and the test will establish that. An employee's employment can be considered adversely affected if for example they are not offered the same salary or wages as other comparable employees or don't receive commensurate fringe benefits such as the use of a work vehicle or free subsidised or discounted goods. The "adversely affected" test also extends to equal opportunities. If an employer does not offer opportunities for training promotion and transfer to employees on an equal basis—irrespective of their membership in a KiwiSaver scheme or a complying superannuation fund—then that employee can likewise be considered adversely affected.Another amendment this bill makes to the Employment Relations Act 2000 is to facilitate legal recourse for discrimination. Specifically the bill makes it easier for those employees who are considered adversely affected by the aforementioned test to file a personal grievance. This provides the legal framework for those discriminated against due to their KiwiSaver membership to seek recourse. The bill will come into effect three months after it receives Royal assent. From that point on the terms of new employment contracts and amendments to existing ones will need to be in line with these changes. The bill also contains some transitional provisions which will apply to employment agreements entered into after a certain date and to variations of older agreements made after that date.The Labour Party is proud to be the party that introduced KiwiSaver to New Zealand and it is important that the fundamental principles of KiwiSaver are upheld. We have too many people in New Zealand currently retiring without superannuation schemes of a large enough balance to be able to retire comfortably. It is important that Governments do everything that we can to ensure that people are able to save as much as they are able in a fair way so that when they retire they have enough to live on at that time. It's particularly important for women—and we know that women are often subject to discrimination in employment and that is another matter that this Government has been working to address through pay equity. We know that women regularly retire with a lot less in their retirement savings than men do and this bill—alongside supporting workers who often don't have strong bargaining rights—will support women who are often discriminated against in their employment.At the end of the day this bill is about fairness. It's about making sure that everyone gets a fair go whether they're saving for their retirement through KiwiSaver or not. It's a straightforward but significant step that corrects a wrong and it upholds the values that we hold dear here in New Zealand. This bill is a piece of good common sense legislation that strengthens the financial futures of New Zealanders and upholds our principles of fair play. On behalf of my colleague Tracey McLellan I look forward to seeing this bill progress through the Finance and Expenditure Committee in the coming months and I commend this bill to the House.ASSISTANT SPEAKER (Hon Jacqui Dean): The question is that the motion be agreed to."