Source: PSA
Progressing employment law will cut the annual pay of more than 200,000 people during a cost-of-living crisis, according to fresh analysis by the PSA.
The Employment Leave Bill, which passed its second reading in Parliament on Tuesday, will strip overtime pay and other allowances from payments to workers while they’re on leave. This adds up to hundreds of dollars a year for people who rely on these extra payments to survive. Based on figures from Stats NZ, the PSA estimates this will leave over 200,000 workers out of pocket, including people working in health, public services, retail, manufacturing and more.
“Supporting this law in the middle of a cost-of-living crisis is irresponsible,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “ACT, National, and NZ First are taking money away from hundreds of thousands of people who are already doing it tough.”
“The Government cannot claim to be ignorant of the harm it’s causing. We presented clear evidence to the select committeeshowing the effects of this bill. Affected workers have met National MPs directly to present their case. And we gave all MPs the opportunity to pledge to oppose any changes that will leave workers worse off – only Labour, Green, and Te Pāti Māori MPs signed.”
“It is particularly galling to see Winston Peters and New Zealand First support this attack on working people at the same time as claiming to be the Party of workers – this couldn’t be further from the truth.”
The PSA will continue to campaign against the bill every day between now and the election, and will inform the public of the scale and severity of its effects.
“Brooke Van Velden claims only ‘edge cases’ will be left worse off by her bill – two hundred thousand people are not edge cases,” said Fitzsimons. “If this doesn’t cut your pay, it will cut the pay of someone you love, or someone in your community who works tirelessly to keep New Zealand going.
“The best time to stop this bill is right now. But if the Government continues to ignore the evidence and passes the bill, we will make sure the devastating effects of this law are on every voter’s mind come November.”
Example of how the Employment Leave Bill will cut workers’ pay
An airport firefighter works 50 hours a week, including 10 hours a week of overtime, which is paid time and a half. Under the current law, their pay while on leave reflects how much they’re paid while working, including their overtime pay. So, if they go on leave for a week, they’d get their usual pay of $2,145, including $585 in overtime pay.
Under the Employment Leave Bill, they will be paid a 12.5% loading for their overtime hours, but those overtime hours no longer count towards their pay while on leave. So, their weekly pay will be $2,193.75, including $633.75 overtime pay, but their pay while on leave goes down to $1560. This adds up to them losing $1,267.50 a year.
Breakdown of workers who will have their pay cut by the Employment Leave Bill
Affected workers include anyone who receives: commissions, higher rates for overtime, variable allowances or shift rates. Figures are drawn from Stats NZ, rounded to the nearest 500.
- Manufacturing: meat, seafood, dairy, fruit and vegetables, wood, chemicals and metals – estimated 24,000 affected workers
- Electricity supply – estimated 1,500 affected workers
- Heavy and Civil Engineering and road construction – estimated 1,500 affected workers
- Retail: supermarkets, motor vehicles, electronic goods, and furniture – estimated 11,000 affected workers
- Road, bus, rail, water, and air transport – estimated 13,500 affected workers
- Newspaper publishing, broadcasting and telecommunication services – estimated 1,500 affected workers
- Financial and insurance services – estimated 6,500 affected workers
- Police, Corrections, Inland Revenue, Department of Internal Affairs, Department of Conservations, and local government – estimated 35,500 affected workers
- Health: allied health, health administration, doctors, nurses, midwives, orderlies, care and support workers, ambulance officers, social workers – estimated 106,500 affected workers
- Total – estimated 201,500 affected workers.
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.