Holidays threatened, say unions

BY COLIN ESPINER
Last updated 05:00 21/12/2009
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Unions are crying foul over proposals to change the Holidays Act that could see thousands of workers facing cuts to sick leave and annual-leave entitlements.

The recommendations are contained in the report of a ministerial advisory group that reviewed the Holidays Act, which was handed to Labour Minister Kate Wilkinson last week.

At the weekend, Wilkinson announced the Government would allow workers to swap one week of their holidays for cash from next year.

It has also decided to make no change to the number of statutory holidays Kiwis enjoy.

Union representatives on the advisory group opposed the cashing up of a week's leave, but say other recommendations in the report are far more concerning for workers.

In the report, employer representatives recommend adopting a single rate of pay for all types of leave using a formula based on a 52-week average. They also want to change the way leave is accrued, which would allow workplaces to count hours worked, rather than days.

Employers say the change would make their payroll systems simpler and cheaper to operate, and would be fairer for everyone.

But union representatives said part-time workers and those who worked shifts or public holidays could be worse off under the changes.

Employers are recommending that workers no longer receive a day in lieu for working a statutory holiday, but instead have the number of hours they work added to their leave balance.

Anyone who works on a statutory holiday now receives a whole day in lieu, regardless of the number of hours worked. Under the proposal, a worker who was required to work only three hours on a public holiday would simply receive three hours lieu time.

Unions also claim that shift workers could see their sick leave cut by up to a third.

Employers are proposing that workers get 40 hours sick pay, rather than the current five-day minimum.

That could mean workers doing 12-hour shifts working four days-on, four days-off would get fewer days, since each day sick would eat up 12 hours of sick leave rather than eight.

Employers also want sick leave to be pro-rataed, meaning those working fewer than 40 hours a week would be entitled to fewer sick days.

That would also hit new employees, who are now entitled to take five days after six months in a job.

Under the changes, they would be entitled to only 2.5 days sick leave after six months.

Council of Trade Unions president Helen Kelly said if the Government implemented the changes as recommended then all Wilkinson's previous statements of reassurance over changes to the Holidays Act were a sham.

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"If they do this, they are writing the law for a 40-hour-a-week worker. Others will find themselves much worse off than they are now," Kelly said.

The CTU and its affiliates would be campaigning hard to protect all current leave entitlements, she said.

"Workers were promised this by the Government when it was elected, and we need to make sure they honour that."

Business New Zealand chief executive Phil O'Reilly said changes to the Holidays Act were essential because the concept of "a day" was outmoded.

"In the modern workplace, someone might work two hours one day, six hours the next, and eight hours the next."

O'Reilly said compliance with the act was the biggest headache for employers after tax, and the legislation needed to be simplified.

Some workers were "gaming" the current system, he said.

Labour's industrial relations spokeswoman, Darien Fenton, said the proposals were "a deceitful grab back of workers' holiday entitlements" and Labour would strongly oppose them.

A spokesman for Wilkinson said yesterday the minister had not yet made a decision about employer recommendations around how leave should be accrued and taken.

"The minister will be taking further advice on that," he said.

The changes will go to a select committee for public comment when legislation is introduced next year.

44 comments
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Geezer   #44   10:40 am Dec 22 2009

This whole "equal footing with Australia" is getting a bit long in the tooth. New Zealand will never be on the same footing as Australia. Australia will always have better salaries, better infrastructure, higher standards of living, etc. Well for the foreseeable future anyway.

jay   #43   10:35 am Dec 22 2009

i dont need 4 weeks of sitting on my hands, i'd rather work, earn the company money, and pay off my debts faster.

and we wonder why NZ is turning to crap... these stupid labour laws mean the company gets boned, pay us less, which means we get less tro put back into the economy.

Aunty Helens policy makers were obviously listening to azy people.. like the DOL bludgers that kept them in power.

Richard   #42   10:18 am Dec 22 2009

My company lets employees buy and sell leave - ie last year when I went on honeymoon I bought 3 weeks of leave to add to my entitlement - it meant my salary dropped by a nominal rate over the year in question but I ended up not having to take unpaid leave. Our basic entitlement is 5 weeks, a lot of people sell their fifth week and get a little bit more money.

Add to this flexible working hours, an infrastructure set up to allow people to work from home, and we enjoy a very low absence rate.

Anne - 'spend 16 hours a day away from work' - yeah right! The 8 hour workday in the professional workforce is a myth. Most companies expect you to be in at work by 0830 and leave at 1700 or 1730; most people either work at their desk or don't leave the office for lunch. That's 9 hours per day, solid, plus phone calls after work, work on the weekends, projects, and all of the other little events packaged under 'and other duties as required on an ad-hoc basis'. I'd be delighted to work 8 hours a day and get an actual lunch break.

Alex   #41   09:13 am Dec 22 2009

If the company agrees to then fine. But I do not think it should be obligatory to companies to pay out for unused holiday leave. Most employers understand that a good worker needs a good balance between work and family time, holiday, or rest. There are more important things in life than a weeks extra wages.

Dan B   #40   09:47 pm Dec 21 2009

A good move from National.

What is bad about giving the worker the choice? I don't see the problem

cecelia   #39   06:25 pm Dec 21 2009

Ive just cashed in a portion of my leave as I have so much of it owing...and being that I dont often take holidays other than the corporate shutdown period over xmas.

Jo Marshall   #38   05:08 pm Dec 21 2009

Well guess what I can well remember when weekend trading came in and you were assured by the then Govt. (National ) that you would not be forced to work it if you didn't want to. Then along came the contracts and hey presto you had included in your contract that you must work one day of the weekend. Well that was goodbye to family time. Guess it won't be too long before you will be made by your employer to sell off one week of your holiday. I suppose Pete #24 that you don't have any holidays so guess you won't be "goofing off. Jon #30 there are other countries overseas that way more annual holidays than we do.

elley   #37   05:06 pm Dec 21 2009

Suzie #15 No, NZ isn't the only country that loses 2 public holiday a year when they fall on a week-end. In France "Monday-isation" is unheard of. You can potentially end up losing 7 or more days a year in a bad year. I found "Monday-isation" amazing when I moved to the UK and then NZ.

Having said that France does have 5 weeks paid leave a year, probably since post-WWII, and has had a max 35 hour-working week for several years which in actual fact means everyone gets an extra 8 weeks paid leave a year (taking into account that most companies/people didn't change the "regular" 40-70 hours weeks practice and employees get credited extra weeks holiday in exchange). In that respect (and many others eg parental leave, childcare, dole, various social services) NZ is a rather behind but it's a different economy too.

anne   #36   04:23 pm Dec 21 2009

Employee: Boss can I have the day off tomorrow? Boss: So you want a day off. Let's take a look at what you are asking for. There are 365 days per year available for work. There are 52 weeks per year in which you already have 2 days off per week, leaving 261 days. Of those 261 days you work each year, you spend 16 hours a day away from work, using up 174 days and leaving only 87 days worked. Of those 87 days you spend ½ hour a day on lunch, using up 1.81 days and leaving, call it 85 days. Your coffee breaks of ½ hour a day use up 1.7 days, leaving 83.3 days. You take 5 days off sick each year leaving 78.3 days. Statutory holidays take another 11 days leaving 67.3 days. We give you 20 days annual leave each year leaving only 47.3 days and I'll be damned if you are going to take a day off! (makes my salary look a hell of a lot better)

Russ   #35   03:57 pm Dec 21 2009

Take the hoilday not the cash, I traveled a few places in my time and see how hard kiwi's work, we are not far behind Japan when i comes to working hours. People should be made to take hoildays to spend time with there family. beacuse some people i know work to much and neglect there family and it only when there mates pressure them to take time off they then realise that they should do it more often. When your dead that extra few hundred bucks aint going to matter.

work to live not live to work.


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