New Zealand Labour Party

90-day work trials an unfair failure which must change

A new Treasury report shows the Government’s 90-day trials haven’t helped businesses and are inherently unfair, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says.

“The Motu report found that 90-day trial periods had no impact on overall employment and did not result in more young people, beneficiaries, Maori or Pasifika being given jobs as National promised.

“In fact the report found the number of new jobs created by the policy to be ‘a precisely estimated zero’.

“These trials have failed. Their only impact has been to make employees feel more insecure.

“The report also found that previous studies into the 90-day trials – which were much-touted by National – were based on surveys of employers who might have overstated the benefits. And that an NZIER study which showed positive results stemmed from ‘misattributing the effects of the Global Financial Crisis’ to the trials.

“While there have always been probationary periods, National introduced a fire-at-will measure.

“Labour will change the law to restore fairness. Employers will be required to give decent feedback,” Iain Lees-Galloway says.