New research shows personal grievance ‘gravy train’ a myth

A new study from the Department of Labour has found little evidence to back up employer perceptions that New Zealand has a personal grievance ‘gravy train’ or that employers are having to make huge payouts to disgruntled workers.

According to the research, the incidence of employment problems is low, and the cost of personal grievance compensation for private sector employers is just $2800 per year.

The study is a major blow to the National Party’s attempts to scrap the right of appeal against unfair dismissal for any worker during their first 90 days in a new job.

Council of Trade Unions President Helen Kelly says the research is welcome and will hopefully lead to a more level headed debate over employment protections for workers.

“The research found that the incidence of employment problems is low, and that the perceptions employers have of many large, informal payouts was not matched by the evidence.

“Work rights, including the right to appeal against unfair dismissal, are there for a reason, and need to be supported and strengthened, not gotten rid off like National tried to do last year with their 90-Days-No-Rights bill.”

Helen Kelly says in many cases the compensation workers negotiate or are awarded through a personal grievance is minimal, and does not go nearly far enough to rectify the loss of economic security their employment provided.