Council of Trade Unions Media release

For immediate release

Governments flunks “fix” for unfair zero hours contracts and employment restrictions

Today the Government has revealed their “fix” to zero hour contracts as part of the Employment Standards Legislation Bill.

CTU Secretary Sam Huggard said unions and their members are very concerned about the impact of this Bill on working New Zealanders.

“These proposed changes actually make zero hours contracts more likely for many. Previously, an employer took a legal risk by using zero hours contracts. Now they will legally be able to demand that worker is available for work without guaranteeing any fixed hours of work, per day, per week, or at all.”

“Sure the employer needs to reimburse the worker for being available but the law doesn’t specify a minimum rate – which means someone could be required to be available to work 24 hours a day 7 days a week and only be reimbursed one dollar.”

“We are really concerned that bad employers could use this law to treat their workers worse, and that more bosses will start using zero hour contracts.”

“Another area of concern is that these proposed changes mean that employers will be able to tell their workers that they cannot work for anyone else. It is certainly possible that some workers could be in the situation where they have no guaranteed hours of work and no ability to seek other employment,” Huggard said.

The Bill makes some other changes that are helpful but in relation to zero hours and restrictions on secondary employment the Minister is trying to put out a fire with gasoline.

The CTU opposes these changes and asks the Government to go back to the drawing board.

ENDS

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