Thank you for the opportunity to talk to you today and may I congratulate you on your great sense of timing. Last week I would have had to talk about what Labour proposed to do if elected for a second term in government, but after Saturday's victory I am now in a position to tell you what my government will do for the country's employment relations over the next three years.

Although, of course, the Prime Minister has still to decide the ministerial portfolios - so whether or not I stay as Minister of Labour remains to be seen.

Whatever the decision I am well pleased with what my colleagues and I have achieved since 1999. We promised a more balanced approach to employment law and that is what we have delivered.

One of our first actions in government was to rid to country of the Employment Contracts Act which treated the employment relationship as nothing more than a commercial contract.
On October 2, 2000 Labour's Employment Relations Act (ERA) came into effect, recognising the workplace reality that employers and employees are people who must be able to work together and deal with each other with mutual trust and respect.

And contrary to the wild-eyed predictions, the Employment Relations Act has not caused the sky to fall in. The country is not suffering from industrial mayhem. The ERA is working well. Union membership and the coverage of collective agreements have stabilised and are now increasing. The confrontational and litigious style of the ECA regime is being replaced by employment relations practices that are underpinned by mediation and reflect the principles of good faith in employment relationships. This has been widely welcomed by employers and employees.

Even the National Party has indicated support for the concept of good faith and the institutions set up under the Act … whoops, sorry about that, slipped back into election mode there for a moment. To be expected I suppose after six weeks on the election trail.

The new government will review the operation of the ERA to see whether any fine-tuning is needed either in law, or in administrative supports the operate to implement the law.

The review will focus on giving effect to the aim of promoting, as opposed to simply permitting, the free association of workers and collective bargaining.

Matters that will be covered in the review include:

• Whether more administrative support needs to be given to facilitate multi-employer collective bargaining, particularly where the size of employer units in particular sectors makes enterprise bargaining inefficient and ineffective.
• The adequacy of provisions in the ERA to discourage and prevent the undermining and avoidance of collective bargaining.
• Provisions allowing union fee deductions for union members who are not covered by a collective agreement.
• Improving monitoring and research into labour market practices.
• Whether compliance costs associated with the bargaining process can be reduced.
• Processes for accessing employment relations education leave, and the provision of that leave for union members who are not covered by collective agreements.
• The extent to which the intent of the Act and, in particular, the principles of good faith bargaining are given sufficient weight in the application of the Act.
  AND
• Whether the provisions of the Employment Relations Act are consistent with ILO conventions 87 and 98 so as to enable ratification.

From the beginning of our first term in government we adopted a consultative approach to ensure both unions and employers helped shape policy development. This approach will continue.

There is still work to be done in several keys areas such as holidays, pay equity and health and safety. We will also take further steps to improve work life balance and promotion of family friendly workplace practices.

Other areas for reform - Holidays Act

While the ERA is working well, the Labour government is committed to reform of other areas of employment law to provide balance and fairness, and employment law more in tune with modern business requirements.

One such change is the proposed new Holidays legislation. The new legislation aims to simplify what has been a complex and difficult area of employment law. It aims to clarify entitlements creating a regime that is much easier for businesses to apply, understand and plan for. Measures such as providing that payment and day in lieu entitlements for all statutory holidays will be treated in the same way, will give greater certainty in legislation.

We will also review the legislation to identify ways of promoting balance between home and work life. Work on drafting a new Holidays Act is being undertaken by officials from the Department of Labour in consultation with the New Zealand Council of Trade Unions and Business New Zealand. We intend to introduce a new Holidays Bill into the House before the end of the year.

Pay Equity

Another area the Labour Government is committed to is introducing measures to address the gap between male and female wage rates.

The Ministry of Women's Affairs recently released a discussion document, and the Department of Labour is currently involved in researching options for promoting pay equity with the aim of closing gaps in pay.

Health and Safety

A third area the Labour Government is committed to reforming is that of health and safety in employment with the Health and Safety in Employment Amendment Bill almost ready to pass.

The Bill provides for shared employer and employee responsibilities by improved participation in the management of health and safety at work and ensuring greater incentives for compliance and for people at work to achieve positive health and safety outcomes in the workplace.

This year's budget made a provision of $12.5 million over four years for implementing the bill, including an increase in the number of inspectors.

Labour remains deeply concerned at the number of New Zealanders who are killed, injured or develop illness as a result of their work. We must have safer and healthier workplaces. One workplace death is unacceptable.

We will also be holding an inquiry into the management of hazardous substances in the workplace - particularly those in the health, printing and manufacturing sectors, and the general use of aldehydes and solvents.

Other areas

We also have further plans for action to make workplaces better including:

• A review of the effects of casualisation on the workforce

We are particularly concerned about the pressure causalisation of work puts on families given the irregular and often anti social hours involved. We must look after the well-being of our families and work cannot be allowed to crowd out or distort family life.

The Council of Trade Unions report on the impact of work hours on families, which was released last week, provides some useful insight and will be invaluable in helping to develop strategies to ensure workers spend quality time with their families and contribute to the lives of their communities.

We also plan:

• A Ministerial Advisory Group to examine the adequacy of redundancy law and provision.
• The introduction of a minimum code of practice for state sector contractors to ensure observance of fair and ethical employment practices

Conclusion

In conclusion the changes that have been made by the Labour government have resulted in a more productive and workable employment relations framework.

The Employment Relations Act has changed the focus of the employment relationship from one based on purely contractual principles to one where the human relationship is at the forefront. The services offered to help in preserving this relationship through dealing with employment relationship problems are also being lauded as effective and a change for the better. The consensus is growing as the Act proves itself in New Zealand workplaces. The Act, and the Employment Relations Service which implements and administers the legislation are both in good shape.

This Labour government is committed to working with all sectors to create an innovative growing economy. Essential to this is a foundation of fair and productive workplace relationships. We have made steady progress in restoring balance over the past three years and will continue to build on this foundation over the next three years.