Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

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

The Committee notes the observations of Business New Zealand and of the New Zealand Council of Trade Unions (NZCTU), communicated with the Government’s report, and the Government’s responses thereto.

Articles 1 and 2 of the Convention. Active labour market measures. In its previous comments, the Committee invited the Government to provide information on the impact of measures implemented under the Business Growth Agenda (BGA) as well as of other active labour market measures. The Committee notes the detailed information provided in this regard. The Government, committed to growing the economy and establishing jobs for all New Zealanders, refers to the results of several initiatives and policy reforms taken within the framework of the BGA. The Committee also notes the results related to the Skilled and Safe Workplaces work stream of the BGA, including getting people off benefits and into employment, delivering skills to meet industry demands and supporting the development of a skilled workforce through the Maori and Pasifika Trades Training (MPTT). The Government further indicates that it is making continuous efforts in ensuring tertiary education, reviewing migration settings, maximizing the employment of New Zealanders and developing an effective and efficient occupational health and safety system that is supported by industry and workplaces. With respect to maximizing the employment of New Zealanders, the Government indicates that it is working with employers to co-develop sector owned initiatives to address skills and employment issues via the Sector Workforce Engagement Programme (SWEP). The NZCTU indicates that the Government has failed to involve the NZCTU or other representatives of workers’ organizations in the development and roll-out of the SWEP. Furthermore, the Government indicates that it aims to attract further investment through the Regional Growth Programme. To this end, it has adopted the Pacific Economic Strategy 2015–21 which helps Pacific people contribute to and share in New Zealand’s economic success by stimulating their economic participation. The NZCTU adds that, while some of these initiatives are useful, the implementation of active labour market policies remains scant and patchy. It also observes a decrease in the percentage of people who access any form of benefit after losing their jobs. This is primarily because they are disqualified on the basis of spousal income which makes them less likely to receive active labour market policy support. In its response, the Government indicates that, through its employment schemes, job search and work placement services are provided to all New Zealanders to the level they need. The Government explains that the logic behind making high-spousal income an exclusionary factor for financial assistance is to ensure that people look to their own resources before seeking assistance from the State. The Committee requests the Government to continue to provide information on the effectiveness and impact of the active labour market measures adopted, as well as on the consultations held with the social partners with respect to the formulation, implementation and monitoring of such measures. The Committee also requests the Government to provide information on the consultations held with representatives of persons affected by the measures taken.

Employment trends. The Committee notes that, according to the Statistics New Zealand Household Labour Force Survey, the labour force participation rate rose from 68.7 per cent in 2015 to 69.8 per cent in 2016, with labour force participation for men and women reaching 75.3 per cent and 64.5 per cent, respectively. With regard to employment measures enacted to meet the labour market needs of women, the Government reiterates its commitment to help women fully participate in society and the economy through the Ministry of Women’s work programme and other initiatives. The Committee requests the Government to continue to provide statistics concerning the size and distribution of the labour force, disaggregated by age and sex, as well as information on the employment situation and trends in employment, unemployment and underemployment.

Persons with disabilities. The Committee notes the information provided on several initiatives aimed at promoting employment for persons with disabilities, including vocational guidance and training services. It notes that a Disability Action Plan 2014–18 was developed using a collaborative approach that involved government agencies working closely with representative organizations of persons with disabilities. Business New Zealand expresses concern about the government funding available, which has proved inadequate to cover the costs involved in finding jobs for persons with disabilities. The Government indicates that it has been working to improve both the universal and specialist services available to assist persons with disabilities to achieve sustainable employment. The Committee requests the Government to provide updated, detailed information on the impact of employment measures targeting persons with disabilities, including reasonable accommodation measures, to assist them in obtaining sustainable employment on the open labour market. It also requests the Government to provide information on improvements made to the services available to persons with disabilities to assist them in finding employment.

Youth employment. The Committee notes the various initiatives targeting youth, including training and employment measures. The Government indicates that, through the Building Skilled and Safe Workplaces (SSW) programme of the BGA, it has raised the bar on the educational achievement of young New Zealanders and has supported them into education, training or employment. This has included increasing the participation of young Maori and Pasifika in the workforce to the same level as the rest of the population. Furthermore, the Pacific Employment Support Services (PESS) was developed to assist Pacific youth who were not in education, employment, or training to achieve real economic independence through learning skills and preparing them for sustainable employment. Outcomes for young people are positive, and the percentage of 15–24 year olds not in employment, education or training had declined to 10.9 per cent in the December 2015 quarter, the lowest since September 2008. Business New Zealand observes that, while the Government is making real efforts to ensure young people have the skills to enter into gainful employment, there have been expressions of employer concern that many training efforts, apprenticeship training included, are not adequate to meet workplace needs. The Committee requests the Government to continue to provide comprehensive information on the effectiveness and impact of employment measures targeting youth, including young Maori and Pasifika.

Education and training policies. The Committee notes the information provided on the results achieved by education and training programmes implemented under, inter alia, the Tertiary Education Strategy 2014–19, the Secondary-Tertiary Programmes, industry-training-related initiatives and the MPTT. The Government also refers to the Reboot Scheme, which has increased the apprenticeship enrolments and the creation of three ICT Graduate Schools. Business New Zealand is of the view that, in order for the initiatives to be sufficiently effective, they would need to achieve greater connectedness, integration and cooperation. The Committee requests the Government to continue to provide information, including statistics disaggregated by age and sex, on the impact of education and training measures, including apprenticeship programmes, in terms of obtaining lasting employment for young persons and other persons vulnerable to decent work deficits. The Committee also requests the Government to provide further information on the coordination of education and training policies with prospective employment opportunities, and on the consultations held with the social partners in this regard.

Workplace productivity and entrepreneurship. The Committee notes that the Productivity Commission is continuing its work in looking at issues related to productivity in the services sector. The BGA encompasses actions and initiatives that support areas needed by businesses to succeed, grow and create jobs. The NZCTU indicates that New Zealand has a very poor productivity record relative to other OECD countries and believes that the Government has been largely unsuccessful in addressing New Zealand’s low productivity growth. The Government provides information on several measures taken to create employment through the promotion of small and medium-sized enterprises (SMEs). The first such measure is the Health and Safety at Work Act 2015, which aims to address the potential for disproportionately higher costs in managing the risk to health and safety of workers, which the Government identifies as a potential constraint for SMEs to achieve decent employment. The Government believes that ensuring health and safety of workers and workplaces is important for productivity. Furthermore, the Government indicates that the Employment Relations Act, that came into effect in March 2015, and other initiatives were adopted aiming to boost employment through supporting SMEs. The Committee requests the Government to continue to provide information on the results obtained in increasing workplace productivity in terms of employment generation. The Government is also requested to provide updated information on the measures taken or envisaged to create employment through the promotion of small and medium-sized enterprises.