Redundancy protection – it’s only fair

Written By: - Date published: 3:00 pm, September 11th, 2009 - 20 comments
Categories: employment, unemployment, Unions, workers' rights - Tags: ,

A coalition of unions, Labour, the Greens, the Maori Party, and community groups has come together to support Darian Fenton’s Redundancy Protection Bill.

There’s a website, facebook group, petition, and other ways you can get involved. The Bill, due to be debated later this month, would set a minimum level of redundancy protection for all workers.

We’re not talking anything lavish – just fair protection. The bill provides for four weeks’ notice before redundancy, plus compensation of four weeks for the first year of service and two weeks for every year thereafter, capped at 26 weeks.

It’s only fair that workers and their families have some recognition of service to tide them over while they try to find a new job. This is more important than ever at a time when unemployment is rising by 2000 a week. Take the story of Jonathan Smith on the campaign website:

At age 25, being made redundant was the last thing Jonathan expected. But with Telecom’s decision to change contractors he finds himself out of a job next Friday with no redundancy pay to tide him over.

“The stress is the worst thing,” says Jonathan. “We’ve all given years of service but now we’re out in the cold, no jobs, nothing. It’s really depressing, seeing everyone’s morale just go down the drain.””Personally I’m lucky to be able to stay with my partner’s parents, but there’s a lot of guys here who’ll have real trouble keeping up with the mortgage and the bills.”

It’s not right that people like Jonathan who have worked hard and given their loyalty to a company can find themselves out on the street with nothing (and isn’t it heartwarming that his thoughts aren’t selfish but for his fellow workers). It’s people like Jonathan that this Bill is all about.

It’s up to National whether this Bill passes and workers get basic protection to help them out if their job disappears. At the very least, they must vote to send it to select committee so MPs get a chance to hear what happens to workers and their families when they lose their jobs and have no redundancy protection as a safety net.

Now, before the righties whine about the cost, let’s get some facts on the table. Four out of five union members have redundancy protections already and it doesn’t send their employers’ out of business. In contrast, very few non-unionised workers have protection, especially people in low-paid work who are most at risk of losing their jobs.

We would only be following the rest of the world in establishing redundancy protections. Nearly every other OECD country has them and Australia has just strengthened theirs to the same 4+2 formula as is in this Bill. If we want to be as successful as other countries, shouldn’t we be following their lead?

Thinking about this, I reckon the biggest thing apart from the substance of the bill is to see the broad left coalition – Lab, Greens, Maori, unions, community groups – coming together again. It’s the shape of the next Government, right there in one campaign.

20 comments on “Redundancy protection – it’s only fair ”

  1. vidiot 1

    If it’s such an essential piece of legislation, why wasn’t it brought in under the previous government ? Oh that’s right they were more concerned with the big picture (ETS) than the common person.

    • Pascal's bookie 1.1

      The partisan sniping is fascinating v, but do you support the idea or not?

      cause if not, that line of attack is pretty fucking weak.

      • vidiot 1.1.1

        I am sure if Labour had concentrated on local affairs / policies that appealed to middle NZ (in their last term), they would have done a lot better at the polls last November. Fringe policies only have imho a limited appeal.

    • Bright Red 1.2

      why wasn’t every problem that ever existed solved by the First Labour government? That’s my question.

  2. NeillR 2

    If Labour hadn’t fucked up the economy we wouldn’t need a bill like this.

    • Armchair Critic 2.1

      Either you don’t know what you are talking about, or you spelled “fixed” wrong. Hint, it doesn’t have a “u”, a “c” or a “k” in it.
      Good to see you agree the bill is needed.

    • Bright Red 2.2

      What a dumb thing to say.

      Drought. Housing bubble burst. Oil spike. World Financial crisis. – they’re what stuffed the economy.

      Give one argument as to how it’s labour’s fault

  3. ieuan 3

    I agree with vidiot, why didn’t Labour bring this in during the last government?

    As an employer it surprises me that there is not a minimum level of redundancy pay set by law in employment contracts.

    • Daveo 3.1

      Because Dyson fucked around. Trevor got onto it, got the Public Advisory Group report done and then put it into the election manifesto – too late by then though.

      Great to see Darien Fenton getting onto this. She’s one of the few in there really battling for working people.

  4. Strathen 4

    I don’t have an issue with this coming in.

    The negatives I see are when businesses make people redundant earlier because of the cost involved. There could be instances where trading through the negative times could save jobs, but a responsible employer will probably make a job redundant earlier to ensure there is money there to pay the employee out.

    Personally I didn’t accept jobs that didn’t have this clause in the contract. I was taught young about certain things I needed in my contract, or to get extra pay if they’re omitted. I’d like to see contract awareness raised in our schools and possibly added to the curriculum. I’d like to see a lot more real life skills added to the schools, but that’s another topic altogether.

    • Maynard J 4.1

      The extra cost only accrues on an annual basis (extra two weeks’ redundancy pay) so I do not think people will get laid off earlier. unless they can pick the bubbles bursting a few years before the rest of us but choose not not make hay while the sun shines!

  5. Bright Red 5

    So. Let’s just get this straight. Aside from vidiot etc running distraction, the right doesn’t actually have any objection to redundancy protection? Awesome.

    You shold make sure National listens to you.

  6. National would do well to support this Bill through to Select Committee, the idea certainly has merit and would afford protection to those who need it most. One potential downside is the commencement date. If employers were required to pay from the date of the Royal Assent then there could be an employer outcry, this could be mitigated if there is plenty of time between National announcing their intention to pass it into law and the actual passage. One downside is that empoyers might want to make people redundant just prior to the Bill becoming law, which can easily be countered by making it retrospective from the date the policy was adopted by the Government as is sometimes the case with taxation legislation.

    What I would like to see is an employee redundancy fund established alongside these protections. The Bill, as currently drafted, places all the burden on the employer where, with a bit of quid pro quo, it could garner support from all sides. A clause authorising all empoyers to levy no more than 1% from each employee salary (and it they do levy it must come from everyone employed by the Company – that includes management and Directors) which is to be ringfenced in a separate redundancy account, an account which is also protected against insolvency claims in the event the company goes into liquidation.

    • Daveo 6.1

      If you did that you’d just be forcing workers to fund their own redundancy, which may not even eventuate. You’d also be effectively taking away the redundancy rights of people who’ve already negotiated them.

      Redundancy is a recognition of service. If the boss makes you redundant then the boss should pay. Other countries do it and it works fine for them, I don’t see why New Zealand should be any different.

    • Daveo 6.2

      Something else I have to wonder – would you require CEOs who get massive severance payouts to to fund it themselves through a pay cut? Or does that only apply to workers?

      • Everyone would contribute – even the CEO. So if a CEO was earning $7m per year, then he would contribute $70,000 each year to the fund, a worker of $50,000 only $500 and one on $30,000 just $300. So it is the ones at the top who will be funding the redundancy.

        Why do you think a CEO is not a worker? Sure, they only put in 80-100 hours per week for the company, but i guess it does not count as work. Its easy stuff right? As for their severance payments, I do not believe in them – but it is an example of a worker negotiating a good package for themselves, something the unions are all for. The Redundancy Bill is not a negotiated agreement between employer and employee, it will be forced on employers, so it is only reasonable that the it is approached in a good faith manner.

        And how on earth does it take away peoples redundancy rights? It is not the be all for the Company – it is a contingency fund. This way, all workers can be assured that there is something for them if the company goes under or has to make people redundant. It is similar to a superannuation fund.

  7. graham 7

    typical labour all power to the unions we out of power as soon as they get elected they tell the unions to get stuffed

  8. malcolmm 8

    What are the downsides of this legislation?

    I think it’ll harm the unemployed. You’re only looking at one side of it: Person has a job, then gets made redundant, then gets their redundancy money. Nice.

    Other side: Person is unemployed. Small company trying to grow and needs staff. Chance of going bust or needing to downside in the next 2 years? Pretty high. So the 8+ extra weeks of notice + redundancy pay is a significant potential cost for the employer. Where does that money come from? Either the employer puts off employing or they can only offer less money.

    The legislation artificially increases the price of employing someone. Increase the price and you lower demand. So less jobs.

    Say I want a job and am happy to work for X. And employer is happy to pay X. Lovely, we can do a deal and I get a job. But now the government comes long and says, well if Malcolm is happy to work for X, we’re going to make the employer pay more than X, by forcing them to pay out if they need to get rid of me. So the government is buggering up my little deal with the employer by inflating my price.

    It might seem trivial, but the legislation increases the cost of employing, at the very time when a lot of people are looking for jobs. That’s bad.

    cheers

    Malcolm

Recent Comments

Recent Posts

  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-03-29T14:57:10+00:00