Leave reforms ‘unfair’ to Pasifika, critics say

Part-time workers may soon have lower sick leave entitlements under proposed changes to the Holidays Act.

The government says the reforms will make the system fairer and simpler, while boosting jobs, but critics warn some of the lowest-paid workers could lose out.

The repeal would shift sick and annual leave to an hours-based system, introduce higher upfront compensation for casual and extra hours, and make bereavement and family violence leave available from day one.

Parents returning from parental leave will receive full pay, while mandatory pay statements and more flexibility to cash out a quarter of annual leave are also included.

Workplace Relations Minister Brooke van Velden says all employees will earn annual and sick leave in proportion to hours worked.

“Sick leave can be taken in hours to match real life, and employers will finally have certainty with straightforward rules,” she says in a statement.

Listen to Rachel Afeaki's full interview below.

“This is a win for workers, a win for businesses, and a win for New Zealand.”

Rachel Afeaki, Chair of the Waikato Pacific Business Network, says Pacific business owners are “not happy” with the changes.

“From an employee perspective, it seems unfair. From an employer’s perspective, it does affect their bottom line,” she tells William Terite on Pacific Mornings. “Our Pasifika people want to work and are good workers. If they need to take sick leave for themselves or their families, they will. It reflects our values and work ethic.”

There are hopes proposed changes will make employment leave entitlements simpler. Photo/Unsplash

Afeaki warns the shift to hours-based leave could create more work for small Pacific businesses.

“Many owners handle their own administration. Others use external payroll providers, which is an extra cost,” she says.

Green Party workplace relations spokesperson Teanau Tuiono says part-time workers, mostly women, could lose out.

“Getting sick doesn’t depend on whether you’re full- or part-time. This move means yet more unpaid work for those balancing jobs with caring responsibilities,” he tells 1News.

"Part-time workers are disproportionately women, with many balancing jobs with caring responsibilities, like looking after sick children. This move means yet more unpaid work for them on top of what they are already doing to keep families, and our economy, going."

There are concerns changes to sick leave will make things harder for part-time workers. Photo/Unsplash

Richard Wagstaff, President of the New Zealand Council of Trade Unions (NZCTU), says simplifying the Act is positive, but it should not come at the expense of hard-won entitlements.

"The impacts will disproportionately fall on Māori, Pasifika, women and other vulnerable workers, who are more likely to be in part-time and insecure work,” he says in a statement.

Economic pressures and local elections

The Waikato Pacific Business Network provides workshops, business navigators, and newsletters to support business owners. Afeaki says Pacific businesses are feeling the effects of the economic slowdown.

“Many are struggling, and some make hard decisions affecting staff. Our role is to help small and medium-sized businesses collaborate and find innovative ways to market their products locally and internationally,” she says.

Photo/File

Afeaki, a Hamilton East Ward council candidate in the local body elections, says Pacific businesses seek more support from their local authority.

“Raised platforms in front of shops reduce foot traffic and trade. If I am elected, I hope to be a voice for Pasifika businesses and all constituents in Hamilton,” she says.

The Cabinet aims to repeal the Holidays Act 2003 and replace it with a new Employment Leave Act, with a 24-month transition period if the bill passes into legislation.