A minister’s failure to grasp contractors’ role
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.