The Major Parties: National's and Labour's Employment Relations Policies

Danaë Anderson,Barry Foster,Erling Rasmussen

doi:10.24135/nzjer.v45i1.13

Abstract

The 2020 election campaign has been divisive and extended, with the election date delayed in August by a month (from 19th September) to 17th October. The Covid-19 pandemic has influenced public policies to an unprecedented degree as well as playing havoc with the political parties’ voter support. While there, initially, did not seem to be many major policy differences between the two main parties, a clear choice has been established during the election campaign. Aside from National’s crucial choice of promising tax cuts and stronger debt reduction targets, a clear distinction in employment relations policies has also been established. Labour continues its policy priorities, which include new employment relations initiatives and large employment support policies, while National pledges more employer-determined flexibility and employee choice in respect of statutory minima and educational opportunities. However, although there have already been many election promises, there appears to be no comprehensive plan from either party of how to establish a sustainable, high skill and highly productive economy along with associated workplace relationships.

Highlights

Major and tragic events have been the backdrop of the current Coalition Government’s policy making in the last three years
This was followed by an announcement of temporary, 16-months tax cuts, mainly through changes to tax brackets, and improved business depreciation. It clearly placed the National Party policy position as markedly different from Labour, who had announced a rise in the top tax income bracket of 39 per cent for high income earners above $180,000 (Huffadine, 2020). While these tax cuts and the use of $4.9 billion of borrowed money from the Covid-19 reserve fund was labelled by Finance Minister, Grant Robertson, as “desperate and reckless”, they highlighted a difference on taxation as well as they signalled major future differences in terms of public sector, health, education and welfare expenditures
While both parties have both acknowledged the necessity of overcoming employment dislocation, there appears to different approaches to vocational education and training (VET)

Summary

Introduction

Major and tragic events have been the backdrop of the current Coalition Government’s policy making in the last three years. National was less supportive of higher minimum wages and benefits while Labour advocated these changes as both socially just and as a growth-generating policy Overall, both the major parties found themselves in unknown territory as the reactions to the disruptions of Covid-19 – in order to avoid massive unemployment problems – shifted the goal posts on economic, social and employment relations policies. It clearly placed the National Party policy position as markedly different from Labour, who had announced a rise in the top tax income bracket of 39 per cent for high income earners above $180,000 (Huffadine, 2020) While these tax cuts and the use of $4.9 billion of borrowed money from the Covid-19 reserve fund was labelled by Finance Minister, Grant Robertson, as “desperate and reckless” (in Malpass, 2020), they highlighted a difference on taxation as well as they signalled major future differences in terms of public sector, health, education and welfare expenditures. There are important differences between the two parties, but it is fair to say that these differences have yet to figure much in the debates of this election campaign

Labour Party

The BIG policy issues in this election campaign

Findings

Conclusion