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

The Committee takes note of the very comprehensive Government’s report received in November 2004, including replies to the 2002 observation and the 2003 direct request, as well as the comments of the New Zealand Council of Trade Unions (NZCTU) and Business New Zealand and the corresponding replies by the Government.

1. Labour market policies. The Government reports on the implementation of an overarching employment strategy since September 2000, which was reviewed in November 2002, following which a number of changes were made to reflect emerging priorities. The overarching objectives now place greater emphasis on sustainable employment, quality of employment and increasing productivity. Strong economic growth translated into employment growth of 1.5 per cent in the year to March 2003 and 3.2 per cent in the year to March 2004. As growth in employment outstripped growth in the labour force, the unemployment rate has fallen from 5.2 per cent in the March 2002 quarter to 4.3 per cent in the March 2004 quarter.

2. Concerning training, including training for youth, the Committee notes with interest the Government’s indication that it has recently agreed to a strategy to improve the foundation competencies of adults. While the first phase will increase the emphasis on foundation learning in a wide range of tertiary education provision through the development of a set of aligned initiatives that will improve quality and build knowledge, the second phase will involve the introduction of a new funding mechanism and a focus on broadening provision to ensure that priority groups can access quality learning opportunities. The Committee also takes note with interest of the statistical information on participation and achievement levels in the Industry Training Strategy report, as well as the document entitled Education Priorities for New Zealand (2004).

3. The Committee also took note with interest of the latest report on progress in implementing the New Zealand Disability Strategy as well as statistics and indicators concerning the current trends of the social well-being of working-age people with regard to employment. Concerning the Government’s Employment Evaluation Strategy, the Committee has taken note with interest of the document entitled Synthesis of evaluations of active labour market policies which reviewed the programmes and services delivered through the Work and Income Service Unit of the Ministry of Social Development. The most effective programme in getting jobseekers off benefits was the opportunity creation programme. That programme was appropriate for the small proportion of jobseekers who wanted to start their own businesses. Matching programmes, such as wage subsidy programmes and job placement services, were the next most effective in providing job opportunities. Least successful programmes were training and work experience programmes. When work experience programmes were combined with a wage subsidy, they showed increased effectiveness. The Committee welcomes this evaluation of the results regarding active labour market measures that are being implemented by the Government. The Committee highlighted the need to monitor progress and to analyse data, as even the best-designed policies can have unexpected effects, can become outdated due to changing circumstances, or may need to be modified to achieve maximum benefit (see General Survey of 2004 on promoting employment, paragraph 491). It would, therefore, be grateful for the Government to keep providing detailed information on all measures demonstrating the effectiveness of an active employment policy. It also wishes to express its interest in receiving information on how measures taken to promote employment operate within a "framework of a coordinated economic and social policy" (Article 2, paragraph (a), of the Convention) and would appreciate it if the Government could indicate how the key elements of monetary and fiscal policies contribute to the employment objectives.

4. Participation of the social partners in the formulation and application of policies. The Committee takes note of the Government’s statement that, as a general principle, it consults with those affected by employment policies and that the scope and level of consultation is tailored to the particular policy. The Government provides examples of consultation which include the Partnership for quality agreement originally agreed between the Government and the Public Service Association in 2000 and revised in 2003, and the paid parental leave scheme of 2003. On the question of consultations, the Committee notes the comments of Business New Zealand to the effect that, while that organization acknowledges being frequently consulted about government policy proposals, its views about likely effects are just as frequently ignored. For its part, NZCTU expresses its concern about the effect of free trade agreements undercutting job initiatives by weakening some sectors and wonders how should government policies look to minimize the trend for manufacturing and production companies to either move offshore or to outsource their production offshore. In this regard, the Committee trusts that the Government will continue to actively seek the views of employers’ and workers’ representatives concerning all issues related to employment policies, in order to take fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies (Article 3).