Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

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

The Committee notes the Government’s detailed report for the period ending in May 2009, including replies to the 2007 observation, as well as comments of Business New Zealand and the Government’s corresponding reply.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. In its previous observation, the Committee asked the Government to keep providing information on the results of its employment strategy, Better Work Working Better (BWWB), launched in 2004. The Government refers to the economic and social indicators used to measure progress towards the goals of BWWB and notes that the steady macroeconomic performance has seen reductions in the official unemployment rate and increases in the participation rate since December 1999, which have resulted in progress towards meeting these goals until the end of 2007. In 2007, there was a registered employment growth of 2.5 percentage points, with employment standing at a record high of 2,173,000 persons and the labour force participation rate reaching 68.8 per cent, the highest rate recorded over the last 21 years. According to Statistics New Zealand, after a record low of 3.4 per cent in October–December 2007, the unemployment rate has progressively increased to reach 4.7 per cent at the end of 2008. With reference to the work–life balance work programme, the Government recognizes that improved work–life balance contributes to increased workplace productivity, improved wellbeing and quality of life, and addresses skill and labour shortages by encouraging labour market participation. The Committee notes that the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 provides employees with caretaking responsibilities with the right to request a variation to their working hours, days of work, or place of work. The Committee asks the Government to continue to provide evaluations in its next report of the impact of the various labour market reform measures undertaken on the current employment situation.

Education and training policies. The Committee notes the detailed information provided in the Government’s report on education and training policies, focusing in particular on the Unified Skills Strategy 2008–12 which is based on a collaboration and commitment to social partnership through the active engagement of the NZTU and Business New Zealand, Government agencies and other stakeholders, including education and training providers. The strategy aims at lifting labour productivity through skills development. Among the priorities set to be achieved within the framework of the tertiary education strategy, the Committee notes that a special focus is placed on increasing literacy, numeracy and language levels for the workforce, as around 1.1 million New Zealanders have low literacy skills. With reference to the initiatives taken to increase employment opportunities for Maori, Pacific peoples and new immigrants, the Government indicates a number of legislative and other measures that are being implemented, including support mechanisms to increase skills levels, employment schemes benefiting Maori jobseekers through partnerships with local and regional councils, and policy measures to facilitate the temporary entry of foreign seasonal workers. The Committee asks the Government to continue providing information, including statistical data, on the measures taken to coordinate education and training policies with employment opportunities for vulnerable categories of workers, specifically Maori, Pacific peoples and new immigrants.

Entrepreneurship. The Government reports on workshops organized jointly by employers and industry partners which were attended by over 3,000 firms for the implementation of the Workplace Productivity Agenda (WPA). The Government further underlines that the most representative workers’ and employers’ organizations have been active in promoting these workshops to their members. The Committee would welcome receiving information in the next report on the results obtained in increasing workplace productivity and information on measures taken to create employment by the promotion of entrepreneurship of small and medium-sized enterprises.

Article 3. Participation of the social partners in the formulation and application of policies. Business New Zealand indicates that although the Government undertakes regular consultations with employers’ representatives on employment-related issues, their views are rarely taken into account, which might have an adverse effect on the job opportunities that the policy measures taken are supposed to promote. In this regard, the Government indicates that, while both employers and employees generally agree that workplace flexibility is positive, the views of other stakeholders are divergent. The Government recalls that, in November 2006, a general consensus on the importance of flexible work for all New Zealanders has been reached, not only including parents or persons with caretaking responsibilities. In this regard, the Committee would appreciate continuing to receive information and data on successes, problems encountered and lessons to be learned from the experience of social partners in New Zealand with regard to the application of the Convention.