Employment Service Convention, 1948 (No. 88) - New Zealand (Ratification: 1949)

Observation (CEACR) - adopted 2020, published 109th ILC session (2021)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government and the social partners, as well as on the basis of the information at its disposal in 2019.

The Committee notes the observations made by Business New Zealand (BusinessNZ) and the New Zealand Council of Trade Unions (NZCTU).

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. In its previous comments, the Committee requested the Government to continue to provide information on the measures taken to achieve the best possible organization of the employment market and the results of the measures implemented, including the impact of the welfare reforms on the quality of employment services and employment promotion. The Committee notes that the Government reiterates its commitment to improving well-being and living standards in the country, including through the development of an Economic Strategy and an Employment Strategy, the latter setting out the Government’s vision for the labour market and providing a roadmap for a series of action plans focused on improving employment outcomes for population groups experiencing poor labour market outcomes (Māori, Pacific people, youth and persons with disabilities). Consultations on the reform to the vocational education and welfare systems have started in 2019 and the Ministry of Sustainable Development is currently working through the May 2019 recommendations of the Welfare Expert Advisory Group on resourcing and strengthening the provision of employment support through the welfare system. The Government further points to the Social Security Amendment Act (No. 2) 2015, as well as the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Act 2016, which uses community-based providers to deliver wrap-around support to help young people into work, education or training. It also informs about the functioning of several welfare programmes including the Mana in Mahi programme targeted towards young people aged between 18 and 24 years, as well as to the NEET service that is addressed to 16- and 17-year-olds that are not in education, employment or training. The Government highlights that its priority consists in supporting people to achieve meaningful and sustainable employment, while also recognising the value of unpaid work, such as caring for children and other family members and community-based volunteering. The Committee notes that in its supplementary report, the Government refers to several measures taken to respond to the economic impact of COVID-19, including wage subsidies accessible to the majority of employers, leave support and immediate access to benefits. The Government further indicates that the Regional Skills Leadership Groups established in 2019 have been supplemented with additional interim offices to ensure that the immediate labour market and skills needs of the regions are met.

The Committee further notes that BusinessNZ observes that Work and Income, the public employment service, is perceived by many employers as providing job applicants who are less qualified and reliable than those found elsewhere and that employers choose instead to advertise their own job vacancies. BusinessNZ also voices concerns as to the employability of individuals trained solely in training institutions and lacking on-site experience, pointing to problems inherent in the proposals to reform the education and training system. In its additional observations, BusinessNZ maintains that the manner in which wage subsidies have been established does not necessarily assist smaller employers in difficult situations as a result of the pandemic. The NZCTU expresses concern that the welfare reforms are focused on reducing the number of beneficiaries and not on the quality and sustainability of employment. It considers that more emphasis should be placed on a set of active labour market employment policies. In their additional observations, the NZCTU alleges that some employers might have used benefits without complying with labour legislation. In view of the concerns raised, the Committee requests the Government to provide updated detailed information on the nature and impact of measures taken to achieve the best possible organization of the employment market, particularly in the framework of the measures taken to address and mitigate the effects of the COVID-19 pandemic. The Committee also requests the Government to provide information on any measures taken or envisaged to render the public employment service more appealing to employers in the country, so as to ensure that the employment service contributes to the fullest extent possible to the achievement and maintenance of full and productive employment.

Articles 4 and 5. Cooperation of workers’ and employers’ representatives. The Committee previously requested the Government to indicate the manner in which consultations are held with regard to the matters covered by the Convention. The Committee notes the Government’s indication that advisory committees and working groups are set up for high-level projects. It welcomes the detailed information provided on the Welfare Expert Advisory Group (WEAG) established in May 2018 to provide advice and recommendations on the future of New Zealand’s social security system in consultation with key stakeholder groups (Iwi and Māori, Pacific Peoples and persons with disabilities. The Government also refers to the consultation group for the temporary migrant worker exploitation review, composed of representatives from business, unions, migrants and international students, as well as to the New Zealand Disability Strategy Revision Reference Group, the majority of whose members are persons with disabilities. The Committee notes, however, that according to BusinessNZ, the WEAG seems to have focused more on the provision of social welfare than employment, with no direct employer input in the expert group. The NZCTU, for its part, acknowledges the establishment of the WEAG, but suggests that there are failures in implementing its recommendations. It also considers that more focus should be given to active labour market employment policies and commends the Government’s efforts to set up a tripartite working group on the Future of Work. In view of the observations of the social partners, the Committee requests the Government to provide information on the implementation of the recommendations provided by the WEAG as well as information on the manner in which the Government cooperates with workers’ and employers’ representatives in the development of the employment service policy and other matters covered by the Convention.

Article 6(b)(iv) and (c). Migrant workers. In its previous comments, the Committee requested the Government to provide information on the measures taken to facilitate any movement of workers from one country to another. The Committee notes the Government’s indication that it has developed and proposed changes to immigration settings to ensure that the immigration system supports the country’s economy and labour market, including better matching the skills needed with those available through immigration, ensuring that temporary work visas are granted for genuine regional shortages and investing in immigration compliance capability. The Government is currently considering changes to employer-assisted visas with focus on employers placing more nationals into jobs and ensuring that temporary migrant workers are not exploited in employment and have wages and working conditions consistent with national values. There is also an in-depth policy and operational review ongoing to better understand temporary migrant worker exploitation and identify impactful and enduring solutions, as well as many other initiatives related to migrant exploitation (increased immigration fees and levies, migrant sex workers research and the restoration of the right to prescribed rest and meal breaks for migrant workers through the 2018 amendment of the Employment Relations Act). The Government also informs that it has replaced the employer-assisted post-study work visa with a post-study work visa providing open work rights for international students of a certain qualification level. The Committee notes that in its supplementary report, the Government refers to the “Visitor Care Manaaki Manuhiri (Assistance for Foreign Nationals Impacted by COVID-19) Programme” that consists of in-kind assistance to migrant workers that experience serious financial hardship and are unable to meet their basic needs. Furthermore, the Government has allocated $50 million to address temporary migrant exploitation, as it is estimated that migrants are at increased risk during the pandemic. Measures include an improved system to report exploitation and an information and education action plan for migrants and employers on their rights and obligations.

The Committee notes the observations of BusinessNZ, indicating that the migrant worker situation is currently in a state of flux, with many employers unable to find the skilled or unskilled workers they need. It further suggests that while the Government’s focus on employing nationals is understandable, migrant workers are urgently needed and accessing their skills is proving difficult given the current immigration delays. BusinessNZ adds that ,while more cases of migrant exploitation are currently before the courts, the majority involve migrant exploitation by migrant employers who are unfamiliar with or reluctant to observe the country’s laws. BusinessNZ refers in its additional observations to the difficulties that employers have in finding workers in agriculture and horticulture, sectors that depend highly on immigration due to border restrictions. Taking due note of the information provided and in view of the concerns expressed by BusinessNZ, the Committee requests the Government to provide information on the impact of the immigration system reform on the movement of workers from one country to another and on the employment of migrant workers in practice particularly in the framework of the measures taken to address and mitigate the negative effects of the COVID-19 pandemic. The Government is requested to provide statistics on the employment situation of migrant workers, including those benefitting from a post-study work visa.

Finally, the Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic on the implementation of the measures taken or contemplated to give effect to the provisions of the Employment Service Convention, 1948 (No. 88).

Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

The Committee notes the detailed information provided by the Government in its report, including the observations made by Business New Zealand and the New Zealand Council of Trade Unions (NZCTU).

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. The Government indicates in its report that, to support welfare reform policy changes, Work and Income (the public employment service) introduced a new service delivery model with different levels of support based on people’s expected patterns of future benefit receipt. Job Streams, a business-focused consolidated package of employment programmes, complemented these reform changes. It also indicates that the Canterbury Skills and Employment Hub, inaugurated in 2012, provides job-matching, information-sharing and immigration facilitation services to help jobseekers obtain employment opportunities in the Canterbury region which was affected by the earthquake in 2011. It adds that RecruitMe, an employment service tool for recording jobseekers’ profiles and matching jobseekers to employment opportunities, was introduced in 2013. The NZCTU points out that there are major political changes in the nature of the employment services being offered and an independent evaluation on the impact of these changes is needed. It also indicates that the “work first” approach and the use of financial sanctions against failures to get employment are two key features of the welfare reforms, and expresses its concern on the fact that these reforms are focused on reducing the number of beneficiaries rather than on the quality and sustainability of employment. The Committee requests the Government to continue to provide information on the measures taken to achieve the best possible organization of the employment market and the results of the measures implemented, including the impact of the welfare reforms on the quality of employment services and employment promotion.

Articles 4 and 5. Cooperation of employers’ and workers’ representatives. The Government reiterates that advisory committees may be established for specific projects when it is required. It indicates that the Welfare Working Group, an expert advisory group, has consulted a wide range of people on the welfare reforms. Moreover, the Work and Income Board provided advice to the Ministry of Social Development on the implementation of initiatives under the investment approach. The NZCTU indicates that the meetings which have taken place between the Government and the social partners did not amount to the consultation through advisory committees required by the Convention; rather, it functioned as a way of providing information. Business New Zealand refers to the greater effort being made to link training in educational institutions to the needs of employers. It points out, however, that school leavers and students of tertiary education have difficulties accommodating themselves to workplace requirements and there is also concern that some subjects studied and courses taken are unlikely to lead to gainful employment. Taking into account the observations of the social partners, the Committee requests the Government to indicate how consultations are held with regard to the matters covered by the Convention.

Article 6(b)(iv) and (c). Migrant workers. The NZCTU refers to the growing concerns about the lack of employment protection for migrant workers. The Government indicates in this regard that migrant workers with the Essential Skills visa are supposed to work on a temporary basis to fill identified skills shortages where citizens are not available. Skilled migrants are able to gain residence under the Skilled Migrant Category. It also indicates that a comprehensive programme for migrant workers is under way, including educating migrant workers on their rights and improving the investigation and sanctions relating to the exploitation of migrant workers. The Committee requests the Government to provide information on the measures taken to facilitate any movement of workers from one country to another.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

The Committee notes the information provided in the Government’s report received in August 2009, including its reply to the 2005 observation as well as comments of the New Zealand Council of Trade Unions (NZCTU) and Business New Zealand.

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. The Government indicates that Work and Income is part of the Ministry of Social Development. Its role is to help to find work and to pay income support on behalf of the Government. Work and Income has over 4,000 employees with 143 service centres nationwide, regional offices in 11 regions and a national office based in Wellington. Work and Income has also five contact centres located across the country. The NZCTU states that the current economic recession is accompanied by higher levels of redundancies and rising unemployment. It expresses its concern that the statements of the Government on the assistance to be provided to workers facing unemployment have not been backed up by substantive action. In particular, the NZCTU refers to the budget cuts envisaged for tertiary education, including adult and community education, despite the increased training needs for the unemployed having been layed off due to the crisis. The NZCTU also points out that the situation is particularly difficult for young workers; the current youth unemployment rate being just under 20 per cent. The Government indicates that it has introduced a comprehensive range of economic stimulus and social assistance measures to help the country respond to the current global economic situation. These measures include a job support scheme and a specific youth opportunity package aimed at creating new work, education and training opportunities for young persons. The Committee notes the NZCTU’s comments concerning the measures recently taken to implement the Social Security Amendment Act 2007, which require parents or guardians of school-age children to plan for, or take up employment, despite the existing shortage of affordable quality childcare. The NZCTU also expresses concern over the partial restructuring of the employment service proposed by the Government, including plans to close the Child, Youth and Family centres in the provinces. The Government clarifies that the current restructuring is being carried out primarily at the national level and aims at refocusing the operations of the Child, Youth and Family service by strengthening frontline service delivery, whereas no changes are being made to the regional structure of the public employment service. The Committee refers to its comments on the Employment Policy Convention, 1964 (No. 122), and invites the Government to provide information, in its next report on the measures taken to achieve the best possible organization of the employment market, in particular by adapting the network of the public employment service to the needs of the economy and the active population.

Articles 4 and 5. Cooperation of employers’ and workers’ representatives. The NZCTU reiterates that there are no advisory committees on general employment services, or employment policies and practices, with representation of the NZCTU or other unions. It emphasizes the need for the Government to consult in a more systematic way, and to directly involve, workers’ representatives in the development of employment policies and practices that will deliver effective measures to respond to pressures caused by the economic recession. While acknowledging that representatives of the Ministry of Labour meet regularly with the NZCTU officers to discuss a range of issues and that irregular consultations are held on specific topics, the NZCTU considers that this does not constitute full and meaningful consultation as required under Article 4 of the Convention. As a consequence, unions are not provided with an overview of future developments, nor are they enabled to suggest improvements to employment service policy and practice. In its reply, the Government indicates that it regularly consults the social partners, and that advisory committees or working parties may be established for specific projects where such a focus is required. In this regard, the Committee recalls that the Convention requires that suitable arrangements should be made through advisory committees for the cooperation of representatives of employers and workers in the organization and operation of the employment service and in the development of employment service policy, and that the representatives on these committees should be appointed after consultation with representative organizations of employers and workers. Furthermore, the general policy of the employment service in regard to referral of workers to available employment should be developed after consultation with representatives of employers and workers through these advisory committees. The Committee asks the Government to include in its next report further information on the consultations which have taken place with regard to the adoption of measures to give full effect to the essential requirements provided under Articles 4 and 5 of the Convention.

Article 6, paragraphs (b)(iv) and (c). Movement of workers. In its comments, the NZCTU refers to the difficult situation of many migrant workers who had been encouraged by immigration services to move to New Zealand and who are now facing termination of their contracts and whose temporary work visas are not renewed. The NZCTU suggests that skill shortages lists be reviewed to ensure that migrant workers are not provided misleading information. The Government indicates that its immigration policy has always been based on ensuring that citizens have been given priority in hiring; however, it points out that New Zealand still needs skilled migrants and that these needs are reflected in skill shortages lists, which are reviewed yearly based on extensive consultations with key government departments, employers’ groups, training organizations and unions. The Committee invites the Government to include in its next report information on the measures taken to facilitate any movement of workers from one country to another, as well as on the measures adopted to ensure that the fullest available information on the situation of the employment market and its probable evolutions, including skill shortages in specific sectors, are made available to the public authorities, the social partners and the general public.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee has taken note of the detailed information contained in the Government’s report received in November 2004, as well as the comments of the New Zealand Council of Trade Unions (NZCTU) and Business New Zealand communicated by the Government.

1. Cooperation of employers’ and workers’ representatives. Regarding consultations with employers’ and workers’ organizations concerning employment service policy, the Government indicates that, as a general principle, it consults with those affected by employment-related policies and the scope and level of consultation is tailored to the particular policy, taking into account the nature of the issues involved, their scope and scale and the extent of the expected impact. The Government explains that the Ministry of Social Development has a number of advisory bodies and committees and provides a list of the groups advising specifically on employment policies.

2. The Committee notes that the NZCTU, while acknowledging the range of employment policy advisory committees and bodies with external participants, considers that this does not constitute full and meaningful consultation, especially where there has been no direct consultation with organizations representing workers’ interests to seek nominees, nor any mechanism for seeking the organizations’ views. The Committee further notes that Business New Zealand considers that where there is a good reason for the Government to consult social partners, consultation does occur, a typical example being cooperation over the promotion of workplace-based learning. However, Business New Zealand considers that there would appear to be no good reason for specific consultation over the development and operation of a state-run employment service. In this regard, the Committee refers to its 1998 observation and recalls that the Convention requires that suitable arrangements should be made through advisory committees for the cooperation of representatives of employers and workers in the organization and operation of the employment service and in the development of employment service policy, and that the representatives on these committees should be appointed after consultation with representative organizations of employers and workers. Furthermore, the general policy of the employment service in regard to referral of workers to available employment should be developed after consultation with representatives of employers and workers through these advisory committees. The Committee trusts that the necessary measures will be taken to give full effect to the essential requirements provided by Articles 4 and 5 of the Convention. It asks the Government to provide in its next report detailed information on the consultations which have taken place with regard to the abovementioned provisions.

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the Government's report and the comments of the New Zealand Council of Trade Unions (NZCTU) and the New Zealand Employers' Federation (NZEF) communicated by the Government.

The NZCTU expresses its concern at the Government's non-observance of Articles 4 and 5 of the Convention, which provide for the cooperation of representatives of employers and workers in the operation and organization of the employment services, as well as in the development of the general policy, which must be secured by means of advisory committees. The NZCTU states that no such advisory committees are in existence and that the Government, within its overall philosophy that trade unions have no special role in the industrial relations or employment policy, has no intention of developing such an advisory framework. In its response, the Government points out that the employment service has, for some considerable time, been operated by a central government department under a minister who is accountable to Parliament, and that employers' and workers' organizations contribute to the development of appropriate legislation which is submitted to the competent parliamentary select committee. Moreover, the Government considers that the strategy to regionalize employment services, described in its report, is dependent on the contribution of all concerned at regional level and, in particular, the contribution of employers and workers.

The Committee is bound to emphasize that the informal or ad hoc consultations of employers' and workers' organizations mentioned by the Government would be insufficient to give effect to the provisions of Articles 4 and 5, which require the appointment of advisory committees to the public employment services. The Committee expresses its concern at this lack of appropriate arrangements for consultation, which would seem to demonstrate a suppression of tripartite dialogue in matters of employment policies. The Committee also refers to the comments of a similar nature it has made for a number of years concerning the application of Convention No. 122. The Committee trusts that the Government will adopt the necessary measures in the near future to give full effect to these essential provisions of the Convention.

The Committee notes that the NZEF considers that there would be merit in considering the extent to which this Convention still serves a useful purpose, particularly given the increasing role of fee-paying employment agencies in the provision of employment information. In this respect, the Committee recalls that the Convention does not prevent the development of private employment agencies. The Committee draws the Government's attention to the provisions of the Private Employment Agencies Convention, 1997 (No. 181), and the Private Employment Agencies Recommendation, 1997 (No. 188), in respect of cooperation between the public employment service and private employment agencies.