PSA wins an important case about collective agreements

The Public Service Association Te Pūkenga Here Tikanga Mahi (PSA) just won an important case in the Employment Relations Authority (ERA) against the Ministry of Education about the application of collective agreements. This was in the context of spending cuts issued by fiat by the cabinet. Such direction does not override the requirements in collective agreements that the PSA be a active participant in changes in employment. This includes when there are mass layoffs and redundancies with public service spending cuts.

I have quoted the whole press release simply because this ruling will have a major effect on all of the public services spending cuts where there is a collective agreement involved, the government’s arbitary ‘fait accompli’ approach to spending cuts, and the almost certain blowouts on the Nicola Willis’s increasing strained budget.

The Employment Relations Authority’s determination in favour of PSA in its case against the Ministry of The Employment Relations Authority’s determination in favour of PSA in its case against the Ministry of Education over its change process is an important victory for Ministry workers, the PSA says.

The PSA filed proceedings in the Authority because of the Ministry’s failure to comply with the collective agreement in relation to job losses forced by the Government’s spending cuts.

Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi Fleur Fitzsimons said the Authority agreed with the PSA’s interpretation of the collective agreement.

“This decision is a victory for dignity and fair treatment of people at work. The attempt to dismiss hundreds of workers by the Ministry is found to be unlawful,” Fitzsimons said

“The Authority accepted the PSA’s interpretation that the collective agreement has not been complied with by the employer. This is because despite what the Ministry tried to argue, there was no attempt to engage the PSA as an active participant in the change,” Fitzsimons said.

“The Authority found that the Ministry used the PSA to receive and disseminate information but that the collective provided for a far more engaged process with the aim of making recommendations to the Ministry which they must then take into account.

“The Authority also agreed with the PSA position that the Ministry was required to adopt a case-by-case approach to the outcomes for individuals. This means considering matters such as retraining, leave without pay, early retirement, severance and assisting people into other work for each individual,” Fitzsimons said.

This consideration also includes a requirement that severance for redundancy can only be implemented once the Ministry and the PSA have agreed it is an available option and once the individual has agreed to take the option.

The case-by-case approach and the approach to agreeing options including severance is an very important provision in the collective agreement and now the Ministry must comply with it,” Fitzsimons said.

“It will ensure a more dignified approach to any changes in the future. It also means that the Ministry should reconsider its approach to matters including reopening voluntary redundancy and reducing its reliance on contractors.”

In terms of the importance of the principles of kaitiakitanga (guardianship) and pono (doing the right thing), the Authority found that these were “significant”, Fitzsimons said.

The PSA has agreed it will meet with the Ministry once both parties have had a chance to digest the decision.

The Ministry has 28 days to file an appeal to the Employment Court.

A total of 755 roles are proposed to be disestablished at the Ministry. They cover people working in regional offices, the Curriculum Centre, central services, those who work directly with the education sector and in support of the wider education sector workforce.

The Ministry will probably file an appeal. However in the meantime it will cause a delay and re-evaluation in plans to cut spending across a range of public service organisations that also have collective agreements.

I’d also expect that the government will attempt to take punitive legislative measures to ensure that Luxon monarchy never has these peasants thwarting his will again. Frankly this government and its leader does rather remind me of Charles the first and his ministers.

I’ll keep an eye out for the judgement, as it will sure to be interesting.