Govt Introduces Bill to Allow Pay Deductions for Partial Strikes

Minister Brooke van Velden Says Changes Aim to Balance Employee Rights and Minimize Public Disruption.

The coalition government has announced a new bill to address the issue of partial strikes by allowing employers to make pay deductions in response to such actions. Workplace Relations and Safety Minister Brooke van Velden introduced the bill, aiming to restore provisions removed in 2018, which she argues will rebalance the rights and consequences of industrial action while protecting public services.

“Partial strikes are industrial actions where employees report to work but refuse to perform key aspects of their duties,” said Ms. van Velden. “These actions often leave the public at a disadvantage, causing delays, disruptions, or added costs for essential services. Employers currently face limited options to address such situations, as they cannot deduct pay without suspending employees or initiating a lockout.”

The bill seeks to reintroduce pay deduction provisions under the Employment Relations Act. Ms. van Velden highlighted the negative impacts of recent partial strikes:

Healthcare Disruptions: In August 2024, hospital MRI and nuclear medicine technologists limited the number of scans conducted each day, reducing output by 50%. This led to longer waiting lists for patients, delays in early cancer detection, and increased costs due to outsourcing.

Education Strikes: Teachers in 2023 refused to teach certain year groups on specific days, creating challenges for student learning and forcing many parents to miss work to care for children.

Defense Sector Action: Since mid-September 2024, New Zealand Defence Force Public Service Association union members have been engaging in “work-to-rule” actions, including refusing to work off-site. Uniformed personnel have been deployed to cover gaps in civilian duties.

Transportation Issues: In September 2024, train operators in Wellington refused shift changes, disrupting services and inconveniencing commuters.

Ms. van Velden emphasized that while the government respects employees’ right to strike, the unchecked consequences of partial strikes harm communities and weaken public services.

“Reinstating pay deductions for partial strikes provides a fair and efficient way to incentivize both employers and unions to resolve disputes at the bargaining table,” she said.

With a significant number of public-sector collective agreements set to expire in early 2025, the government aims to pass the bill before the end of the year. This move, according to Ms. van Velden, ensures that public services continue to improve without unnecessary disruptions.

The proposed legislation is expected to face scrutiny from labor unions, who have voiced concerns about the impact of pay deductions on workers. However, the government argues that this measure is a necessary step to ensure accountability and minimize disruptions to critical services.

Ms. van Velden concluded, “The public deserves reliable access to essential services, and this bill sets the stage for achieving that balance.”