Ministerial Advisory Group on Restructuring and Redundancy Issues Seeks Public Submissions

The deadline for submissions on restructuring and redundancy closed on 30 April 2008. The Department has received submissions from a variety of businesses, community organisations, academic institutions, employees, employers and union. The submissions are currently being summarised for a submissions report which will assist the Public Advisory Group on Restructuring and Redundancy in developing its recommendations to the Minister of Labour by 30 June.

Background

A Public Advisory Group on Restructuring and Redundancy issues has been appointed to the Minister of Labour and is calling for public submissions.

The Group will examine the adequacy of redundancy laws and provisions.  With the support of the Department of Labour, the Group will report to the Ministers of Labour, Social Development and Employment, and Economic Development on the adequacy of New Zealand’s redundancy laws by June 2008.

About the Public Advisory Group on Restructuring and Redundancyng

The Group will focus on the adequacy of the legal framework in supporting successful transitions for workers and longer term mitigation of adverse labour market impacts. The Group will consider the adequacy of these laws and provisions at the level of individual employees and employers, and for wider economic transformation.

The Group will provide recommendations on the following matters:

a.       Statutorily prescribed consultation requirements

b.       the amount of notice employers must provide employees in the event of a redundancy

c.       consultation requirements to avoid mass redundancies, and

d.       a statutory requirement for redundancy compensation or other entitlements.

The Group will also consider:

a.       Evidence from further research on the extent of redundancy provisions in employment agreements, employer and employee experiences and extent of any problems with current arrangements

b.       whether any additional legal requirements should apply to all redundancy situations or should they be more targeted

c.       the experience of other countries that have implemented similar requirements

d.       employees' and unions' experiences

e.       the costs of entitlements and compliance for employers

f.         relevant International Labour Organisation standards

g.       interface matters with the existing insolvency regime

h.       nterface matters with Part 6A of the Employment Relations Act 2000, and

i.         portability of entitlements 

The Group will also have due regard for the whether redundancy and restructuring situations disproportionately affect any particular groups, including any gender, ethnic and disability implications.

The Group’s recommendations are to be formed in consideration of the work being led by the Ministry of Social Development on Security in Change.

The Group’s size and composition:

The Group includes representatives from both Unions and Employers, including representatives from the New Zealand Council of Trade Unions and Business New Zealand.