Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

Employment Policy Convention, 1964 (No. 122) - New Zealand (Ratification: 1965)

The Committee notes the information contained in the Government’s detailed and well organized report for the period 1 July 1998 to 31 May 2000.

1. Articles 1 and 2 of the Convention. The Government states that the economy grew very rapidly in late 1998 and 1999, and was expected to grow at about 3.5 per cent per year in 2000-01. The Government’s macroeconomic policies include: stabilizing prices, increasing market competition, reducing government debt, cutting deficit spending, increasing national savings, and stabilizing tax rates. A coalition agreement endorsed pursuing orthodox economic policies and prioritizing economic growth.

2. During the late 1998-99 period, employment increased by 1.4 per cent and unemployment decreased from 7.2 per cent to 6.4 per cent. The labour force increased 1.1 per cent, with a substantial increase in the participation of women. Employment increased 0.6 per cent in 1999 and 1.4 per cent in March 2000. Growth was stronger in services and primary sectors. Youth unemployment increased slightly from 16.4 per cent in 1998 to 16.8 per cent in March 2000. Unemployment for Maori people decreased from 17.3 per cent to 15.5 per cent, but still remains significantly above total unemployment rates. Long-term unemployed as a proportion of total unemployed remained about the same at 35.2 per cent.

3. In response to previous comments, the Government states that participation in education or training is no longer compulsory to receive benefits; rather the Government follows a facilitative approach. In the industry training strategy, industry designs training to meet its needs, with worker involvement. The modern apprenticeships programme encourages greater participation of young people in industrial training. The national qualifications framework aims to coordinate industrial, senior secondary, and tertiary education and training to foster lifelong learning. The more general industry training framework was to be reviewed in 2000. The Committee notes this information and requests more details on the findings and outcome of this review.

4. Concerning periodic review of other policies and programmes, the Government states that it conducted an impact evaluation of the community taskforce. It found that participation did not significantly increase the probability of moving to unsubsidized employment. The Committee notes this information and requests further details on the action taken in light of this finding. The Committee also notes the Government’s statement that it intended to undertake a wage subsidy review in 2000, and requests further information on the outcome of this review as it relates to employment promotion.

5. The Committee notes more generally that the Government has developed an employment evaluation strategy - a framework within which to evaluate capacity building, strategic evaluation, and monitoring of employment and welfare policies. The first phase has been to build up its capacity to evaluate. Next will come an attempt to answer more systematically the question "what works for whom and under what circumstances". Lastly, the Government will address wider strategic issues such as the community benefits of employment promotion programmes. The Committee would appreciate being kept informed of progress made in developing the employment evaluation strategy.

6. Article 3. The Government states that it follows a "case-by-case approach to the issue of consultation" and has held consultation on the Employment Relations Bill, the minimum wage for young people, and the Social Security (Work Test) Amendment Bill. However, it adds that it is "seeking to move towards partnerships with various stakeholders on delivery of employment services" and that a "new partnership is to be built with business and local communities". The Government has undertaken a regional partnership programme with NGOs. It also has partnerships between central and local government and industries and enterprises, in an effort to boost industry. And the business development programme (BIZ) is run with input from the New Zealand Employers’ Federation and provides management support to SMEs. The Committee notes this information and asks the Government to continue to supply details on the manner in which representatives of the persons affected are consulted concerning employment policies, and the outcome of these consultations.

7. The Committee notes comments sent by the New Zealand Employers’ Federation (NZEF). It notes in particular the NZEF’s concern about the impact of the Employment Relations Bill on wage inflation, which has the potential to adversely affect employment promotion, and the Government’s reply to the effect that it considers the NZEF’s predictions to be unfounded. Please continue to supply information on the employment impact of the Employment Relations Bill, once adopted.

8. Lastly, the Committee notes that the Confederation of Trade Unions substantially endorses the Government’s report and expresses its general support for the policy direction indicated.