Hon Ruth Dyson
Minister of Labour

13 July 2007 Media Statement

Employers urged to seek advice on workplace disputes

New research shows that employers benefit from seeking advice before taking steps to resolve an employment dispute, and also from using formal dispute settlement processes, says Minister of Labour Ruth Dyson.

The Department of Labour has been conducting a research project to find out what is driving employers’ concerns about dispute resolution. This work addresses recommendations from Cabinet and from the Transport and Industrial Relations Committee.

The findings of the Department’s short-term research and preliminary long-term research provide a ‘snapshot’ of how employers are resolving disputes.

“The short-term research reinforces what we already know is happening - that the majority of employment problems are resolved at an early stage in the workplace,” said Ruth Dyson.

“This is an encouraging finding. However the research also shows that the best outcomes for resolving a dispute are based on sound advice from a trusted advisor. Genuine attempts to resolve disputes in this manner are in line with the Employment Relations Act’s objectives of open communication and good faith.

“It also shows some employers are unnecessarily paying costly settlements at an early stage rather than entering a dispute resolution process because they mistakenly perceive it to be expensive and protracted.

“Employers are reacting by circumventing formal dispute resolution processes – but the outcome is that they are facing higher costs than they would if they used the formal processes available.

“The research ‘snapshot’ of the Department of Labour’s free mediation service and Authority determinations show settlements to employees are most likely to be lower when these methods are used, than the cost for settling in-house.

“Advice is available through trusted networks such as employer organisations, and trade associations, and information is available through the Department of Labour’s website or contact centre. I encourage employers to avoid unnecessary costs by seeking this advice,” Ms Dyson said.

The research is available at http://www.ers.govt.nz/publications/era_info.html

ENDS

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