Labour MP puts up minimum redundancy bill

29 May, 2009

Labour MP Darien Fenton has put forward a new private member's bill to provide all workers with minimum notice and redundancy compensation rights.

The bill comes as an increasing number of workers are being dismissed without notice or redundancy payments due to the recession.

Currently workers have no legal entitlement to redundancy payment unless it has been negotiated into their collective agreement. With only 20% of the workforce protected by union membership thousands of Kiwis are losing out.

Fenton says her bill is based on the recommendations of the Public Advisory Group on Restructuring and Redundancy which reported back in 2008.

"The report, which recommended introducing statutory minimum notice and redundancy compensation, has been on the desk of Labour Minister Kate Wilkinson since last November.  I asked her weeks ago what action she was taking on it, and she replied that she was ‘considering' it," says Fenton. 

"That's no comfort to the 60 workers at Bright Wood who last week were told their jobs will be lost with no redundancy compensation.  And it's no comfort to the many thousands of other workers facing the chop at the moment who don't have the protection of redundancy and notice requirements in collective agreements."

Darien Fenton estimates there are tens of thousands of workers who have no redundancy entitlements in their employment agreements.

"I would prefer to see urgent government action than have these workers rely on a members' bill, but I have no confidence that the Minister will take the matter seriously."

Last week the EPMU and other unions called for the Government to action the report's recommendations and provide basic redundancy protections for all workers.