The Press

A minister’s failure to grasp contractor­s’ role

- James Fuller is the chief executive of Hnry, an online accountanc­y service for sole traders. James Fuller

After spending much of the election campaign hammering home the need to cut public service contractor­s, it was a breath of fresh air to hear the Government seemingly change its tune entirely, praising contractor­s and highlighti­ng the benefits they deliver to the economy.

Minister for Workplace Safety and Relations Brooke van Velden said in a speech to the Auckland Business Chamber – where she was announcing proposed changes to contract law that would remove the ability of gig workers to challenge their employment conditions – that contractin­g “increases productivi­ty” and enables resources to be allocated more “effectivel­y”, increasing outputs. In a nutshell – “contractor­s are great”.

This speech was the first time the Government had announced any policy relating to sole traders since the election, and it was seriously disappoint­ing. Eroding gig workers’ rights, it echoes Uber’s sentiments and smacks of internatio­nal lobbying.

If this Government thinks contractor­s are so great, why does it want to make it easier for internatio­nal companies to underpay our gig-economy workers? And why is it continuing its crusade to strip much-needed contractor­s from the public service?

The Government’s proposed changes to contractin­g law are aimed at less than 10% of New Zealand’s total sole-trader workforce, which numbers around 400,000 people. All sorts of people are contractor­s – graphic designers, physios, tradies, creatives and more – and unfortunat­ely, they’ve all been mistakenly swept up by van Velden’s “gig worker” broom.

Some rideshare drivers aren’t paid fairly and earn less than minimum wage, and they should be asking for benefits to offset that.

The rest of our sole-trader workforce doesn’t need any contractin­g laws changed, but they require and deserve a government – and a minister – who understand­s who they are and what they do.

Since the election campaign, the writing has been on the wall for public service contractor­s. Thousands feel stigmatise­d and ostracised, even those who have worked for multiple agencies over many years.

They’re worried about their future, their contracts being cancelled at short notice and how they will provide for their families.

Public sector leaders have long recognised van Velden’s recent “revelation” and leveraged contingent workforces to stay efficient. They don’t want to lose this valuable workforce, which often works in front-line roles.

We’re hearing government agencies are so desperate to meet the Government’s demands for cost savings that contractor­s are being pressured to move to fixed-term employment agreements.

A no man’s land between full-time employment and contractin­g, these agreements offer neither the security of long-term employment nor the flexibilit­y of contractin­g. They’re also a clever way to move/hide a contractor's cost from one budget line to another.

Before the election, Hnry asked all political parties what they would do to support sole traders if elected.

The only coherent response ACT provided was that it would reduce ramraids, a threat that impacts even fewer sole traders than the small proportion of gig economy workers being unfairly paid.

It was a sure-fire sign it didn’t understand sole traders before the election, and it certainly doesn’t understand them now.

The Government could roll out four easy wins tomorrow to show vulnerable gig workers and our 400,000 sole traders that they actually mean business.

Implement a minimum sole trader wage to protect the most vulnerable.

Essentiall­y, gig workers are asking for this. They’ve challenged their employment status because they’re paid unfairly and want more security.

Classify independen­t earners in the Census.

Stats NZ’s data is old and unreliable. It needs to properly track the sole-trader economy so the government can make better policy decisions.

Educate public and private sectors about the sole-trader economy.

How is it that even the minister didn’t know the difference between a gig worker and a contractor?

Remove fixed-term employment agreements from the law.

Let’s face it – you’re either an employee or a contractor. Let’s eliminate the messy grey area in between that costs way too much money and doesn’t benefit anyone.

The Government has two choices: either stand by the minister’s position and reverse its cuts to public-sector contractor­s, or ask Brooke van Velden to retract the comments in her speech, before the public sector takes them as a directive to resume hiring contractor­s.

 ?? ?? Minister for Workplace Safety and Relations Brooke van Velden. ROBERT KITCHIN/THE POST
Minister for Workplace Safety and Relations Brooke van Velden. ROBERT KITCHIN/THE POST

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