News of the finance and information workers union
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May 2006
No rights for 90 days
‘Is this the job security you and your family want?’
In February National Party MP, Wayne Mapp, introduced a Bill to Parliament, which would allow employers to fire workers in the first three months of work without those workers having any access to many of their normal legal employment rights or grievance procedures.
Surprisingly the Bill made it to select committee for further consideration despite government opposition. It was supported by MPs from National, United Future, Act, New Zealand First and the Maori Party.
The Employment Relations (Probationary Employment) Amendment Bill would allow employers to sack workers in the first 90 days of employment without reason.
Finsec President, Sue Boraston, has called the Bill "an attack on the good faith provisions in the current Employment Relations Act. It means that employers could sack workers because they are members of a union, asked for a wage rise, complained about health and safety or for any other reason."
This bill does not apply just to a worker's first job, but every new job they have throughout their life. During each new job, there would be no access to personal grievance procedures for the first 90 days of employment. This will have an impact on workers in the finance industry where a high turnover in most major banks and insurance companies means many workers will change companies regularly during their career. Within New Zealand most workers have about six jobs in a lifetime. So many workers would be denied their employment rights six times in their life.
The National Party states this Bill will stimulate employment. However unemployment has gone down over the last few years without forced probationary periods.
Employers say that this Bill will reduce expensive court costs. But the Mediation Service established by Employment Relations Act provides for employment grievances to be resolved without the need for court cases. Disputes during the first 90 days and/or regarding probationary periods are very rare.
Probation periods have been strongly opposed by workers in France recently. Probation periods have also been introduced in Australia as part of a wide-ranging collection of anti-worker initiatives.
