23 Jun 2023

BusinessNZ will seek return of worker 90-day trials post-election

11:25 am on 23 June 2023
Two construction workers working together to patch a bump in the road with fresh asphalt.

It should also be easier for lower-paid workers to come into the country to work, BusinessNZ says. Photo: 123RF

BusinessNZ has released its wishlist ahead of the election, calling for the labour market, education, immigration and infrastructure to be prioritised.

The industry group has recommended the incoming government remove Fair Pay Agreements and reinstate 90-day trials for all businesses.

As part of its Election Priorities document, it also called for immigration settings to be more open, simple and predictable, with increased funding for Immigration New Zealand.

The group's advocacy director Catherine Beard said the group wanted to see work to residency pathways for occupations that were not on the Green List and for it to be easier for lower-skilled and lower-paid workers to come into the country to work.

"We'd like to inform political parties and policymakers of the policy areas where the business community believes we could do better, for the benefit of all New Zealanders," she said.

On the call to reinstate 90-day trials, Beard said employers wanted to see the trial periods return across the board - they are currently only able to used in small businesses.

"Employers need to be encouraged to make the right choice when employing people, particularly if that choice involves a risk through, for example, misaligned skills or previous labour market detachment," she said.

Beard said Fair Pay Agreements imposed a one-size-fits-all approach to pay rates on entire industries, regardless of individual business scale, location or market circumstances.

"The system will remove much of workers' ability to have their performance appropriately rewarded, as well as much of employers' ability to negotiate freely according to the needs of their business," she said.

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