Worker freedom and flexibility being eroded by law changes

The Government’s move to “one size fits all” with its employment and immigration law changes will restrict the freedom and flexibility truck drivers currently enjoy.

With an election year coming, the unions are flexing their muscles. Fresh from making new employees be employed under terms consistent with the collective agreement for their first 30 days, as per changes to the Employment Relations Amendment Act 2018, they are chasing Fair Pay Agreements, and Multiple Employer Collective Agreements (MECAs). There is no interest in the wider road freight transport sector for MECA agreements.

The Government continues to ignore businesses that are happily going about their business without the restrictive hands of the unions. The RTF has recently submitted on the Designing a Fair Pay Agreements System Discussion Paper and the Addressing Temporary Migrant Worker Exploitation: Consultation Document. It’s almost a fulltime job trying to keep up with all the changes this Government wants to make to restrict business.

We do not support the Fair Pay Agreements (FPAs) because they will distort the market and create a number of undesirable outcomes. Unionising the workforce will not alleviate a worker shortage, or improve conditions. Quite the opposite will occur; it will make the road freight industry less attractive to people who want flexibility, including women who are enjoying working in trucking because the can start work early and get home in time to manage the day and after-school activities for their children.

This is at a time when we are focused on increasing diversity in our industry and encouraging employers to provide the flexibility to encourage that.

We believe the proposals in this particular discussion document risk returning the road freight transport industry to pre-1991 bargaining conditions, which we do not support. We want to move forwards, not back 30 years.

The employment landscape has changed since the heyday of the unions back somewhere in history. FPAs will be expensive and slow for employers and consequently, employees, particularly for the small to medium sized companies that make up the bulk of the road freight transport industry.

We believe a voluntary approach is more balanced with today’s business environment. Government support for industries, such as ours, rather than the demonising we are seeing with statements such as “getting dangerous trucks off the road”, would be more useful in solving both the road freight industry’s worker shortages and getting people who are out of work into rewarding careers.

The anti-immigration stance of this Government is making it so difficult for employers to employ the seasonal visitor workforce, those workers are no longer even coming here.

Recent changes to immigration policy also conspire against improving conditions in the workplace. Making it almost impossible to hire migrant truck drivers to pick up some of the workload will only increase the workload for New Zealand drivers. There is enough work to go around, with the road freight task increasing. There seems to be no logic in play.

We accept there is opportunity in New Zealand for worker exploitation – that is for all workers, not specifically migrants. We believe the best approach to this is to ensure first, education about rights under the law. The second step is to ensure the investigative resource is available and suitably trained to carry out effective investigations across the whole supply chain.

In our industry, drivers want choices about how and when they work. Trucking varies tremendously between different companies, regions, freight types and vehicles used. National, or even regional awards, are not going to be flexible enough to allow for that variation, or to meet driver needs. With driver shortages, good drivers have flexibility and are well paid.

The next line of attack from the Government is going to be on independent contractors, that is, people who want to work for themselves. The impacts of that go right to the heart of our industry – many owner-drivers work on contract to larger companies. This issue is currently being debated by the trucking industry in California, where the industry is saying it will dramatically affect upwards of 70,000 drivers who will possibly elect to either leave the state, or the occupation entirely. Submissions close on 14 February 2020 on the Better protections for contractors: Discussion document for public feedback, which is another one for our pile.

You are left wondering when the Government will start listening to the experts in business who drive the economy.

– Nick Leggett, CEO, Road Transport Forum


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