Govt urged to act on redundancy

The Government must act on an OECD call for employers to offer workers a minimum redundancy notice and prepare them for a new job, First Union says.

The OECD report titled Back to Work New Zealand found that many Kiwis who are made redundant are forced to take up new jobs with 20 per cent less pay on average, even after three years.

Although the New Zealand reemployment rate is not considerably low compared to other OECD countries, workers typically get shorter hours and fewer benefits.

The most vulnerable are low-skilled workers, suggesting New Zealand employers need to strengthen training guidance, the OECD says.

First Union has told Workplace Relations Minister Michael Woodhouse he needs to act on the OECD’s suggestions.

‘‘The OECD’s findings constitute an urgent call to action, but here’s our workplace relations minister shrugging his shoulders and saying we have the balance right,’’ First Union general secretary Robert Reid said.

Based on 2013 figures in the report, white-collar workers were given 15 days on average to prepare for unemployment, compared to nine days for labourers.

Reid said New Zealand risked becoming a laughing stock with its out of balance employment laws.

‘‘Our laws leave them [workers] without protection if the boss puts them out of work.’’

One in six New Zealand workers made redundant was unable to find work at all, the report found.

The OECD says it wants New Zealand to consider introducing an active redundancy insurance scheme to replace voluntary redundancy payments.