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QUALITY FLEXIBLE WORK

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SUPPORTING INFORMATION

QUALITY FLEXIBLE WORK – THE ISSUES IN DETAIL

There is a skills shortage in New Zealand and it is likely to continue

New Zealand workplaces need to be productive and competitive now and into the future.  The international skills shortage is predicted to continue.  New Zealand now has more people working but we work longer hours than most other OECD countries.  We can’t work longer but we can work smarter - to lift productivity and skills and allow as many people as possible into the workforce.  Quality flexible work is one way of retaining skilled workers and encouraging people to enter and stay in the labour market.

Demand for quality flexible work is strong

In a national survey undertaken in 2005, New Zealand employees indicated that, in particular, they wanted:

  • flexible start and finish times;
  • additional leave both paid and unpaid; and
  • more say about how they work, including the ability to change rosters and shifts and to choose how many hours they work.

New Zealanders need quality flexible work for a variety of reasons

The EEO Trust’s Work and Age Survey of 2006 found that retired people would like to still be doing some paid work.  For older people still in the workforce, the ideal transition from full-time work to retirement would be part-time work or more flexible hours.
For parents, quality flexible work helps them to care for children, spend more time together as a family and participate more in their children’s lives.
As the New Zealand population ages, people need flexibility to be able to care for older friends and family members.
The EEO Trust’s Disability and Employment Survey of 2005 found that flexibility around hours is the one most valuable initiative that workplaces could offer to enable disabled people to contribute fully at work.
Other reasons New Zealanders need quality flexible work include caring for others, working in the community, for cultural or sporting commitments, to undertake study or for recreation and leisure.

Needs for quality flexible work change over time

People’s needs for flexible work change over time as their life circumstances change - as people move through careers, parenthood, other caring responsibilities and retirement.

Flexible work arrangements are available in workplaces

There are many examples of good practice in New Zealand both in small and large businesses, and across private, public and not-for-profit sectors. 
The most commonly available arrangements in relation to flexible work (ie available to all employees at more than 50% of workplaces) are :

  • being allowed to occasionally vary start and finish times; and
  • having flexible break provisions.

Employers have said they are keen to implement initiatives such as flexible work but some say they lack the tools to do this.

Take up of flexible work arrangements may not match availability

Having flexible work arrangements available does not necessarily mean that employees can or will take them up.    Those with the least bargaining power may miss out.  Department of Labour research suggests that almost a third of employees can find it hard to discuss work-life issues with their manager or supervisor.  
A recent EEO Trust survey found that while many employers offered work-life balance initiatives, the average take-up was much lower.

Some workers may find it harder to access quality flexible work than others

For some employees, particularly those with low pay, the need to generate a sufficient income can overshadow any need or desire to work flexibly.
Shift workers, including those working rotating shifts and those working at night, may find it difficult to access quality flexible work and may have fewer work options available.  People who work shifts, particularly those working rotating shifts, are more likely to experience work-life conflict than those with other working patterns.
For those in precarious employment (low job security, often casual or temporary workers) where work is already flexible, it may be an issue of quality. 
Some workers would like to work more (and more secure) hours not fewer.
In some organisations flexible work arrangements are not available to all employees.  Department of Labour research suggests that senior staff or management are more likely to be offered a wider range of arrangements than other staff.

Quality flexible work means that it works for everybody in the workplace

Quality flexible work is about balancing the needs of the organisation, the workplace and the individual.  This may mean that some flexible work options are not available in some workplaces depending on the nature of the work (for example working from home is not an option available for retail staff).

The gender dimension of work is important

Women are more likely to be caring for family members and have a lower level of participation in paid employment.  Flexible work opportunities can mean that women participate more in the workforce but there can be pay penalties associated with flexible and part time work. 

Flexible work arrangements differ between small, medium and large businesses

Small employers (up to 10 employees) appear to be very flexible in the range of working practices they offer staff.  However as organisations grow in size, particularly for those organisations with between 10 and 50 employees, it appears to be more difficult to provide flexible working practices.  Large employers are more likely to offer formalised flexible work policies but less likely to allow flexibility in the way hours are worked within the work day.

Many businesses don’t see cost as a major barrier to implementing flexible work options but they are concerned about any additional compliance costs

Most employers do not think implementing work-life balance initiatives is too expensive.   But small businesses are concerned that options to increase quality flexible work may lead to increased compliance costs.
In a recent survey by the EEO Trust, a number of organisations already implementing flexible work arrangements agreed that costs (financial or otherwise) were not apparent or were outweighed by the benefits of improved retention and productivity and reduced absenteeism.

Unions and employers already work together to successfully introduce quality flexible work

There are already examples of collective agreements and work-life balance projects in workplaces.
The Department of Labour is working with 14 large employers to develop tailored work-life balance initiatives (including flexible work arrangements) for their workplaces.  A key component of this is employers, employees and unions working together.
Flexible work arrangements have been negotiated in collective agreements.  Of the 560 agreements finalised in the 2005/06 year (covering nearly 75,000 workers), 45% contained provisions relating to flexible hours, 41% to extended leave and 7% to change work status (eg between full-time and part-time work).  

Government has a significant role to play in quality flexible work

As a major employer, government has the opportunity to implement quality flexible work practices and lead by example.  The government’s long term goal is to increase productivity and skill levels so we move to a high-value, high-wage economy that provides a better standard of living for New Zealanders.  The government is also aiming for a good quality of life for all New Zealanders, which includes child and family well-being, rewarding work that fully utilises people’s skills, and balance between paid work and other parts of life.  


Quality flexible work: the range of approaches in detail

How can the ability of employers to introduce and manage flexible work arrangements in the workplace be increased?
  • Provide information and resources for employers to support implementation of quality flexible work.

Explanation
Develop a range of information and resources for employers that encourages and enables them to introduce quality flexible work practices into their workplaces including the benefits of quality flexible work; “how to” guidance on implementing and managing flexible work.

Roles and Responsibilities

Employee:- onus on employee to make request

Employer:- can use resources but no obligation; still required to consider and respond to any request in good faith

Unions:- assist employees to make requests; bargain for collective agreements to have a framework for managing flexibility

Government: - develops and promotes information

Employer Groups:- promote information; provide employers with guidance on how to manage flexible work in the workplace

EXAMPLE
Business Link - choose the right type of flexible working (UK)
businesslink.gov.uk
This is a web-based interactive tool for employers to get advice on what might be the best flexible work arrangements for their particular circumstances.  The site also includes other resources on flexible work for employers.

direct.gov.uk/Employment/Employees/fs/en
This is a similar tool for employees to get advice on what flexible work pattern suits them and how to build a case for requesting flexible work.

How can the ability of employees to access and use quality flexible work be increased?
  • Promote how requests can be made under existing legislation, provide employees with more information about quality flexible work, and employers with information to help them consider and respond to requests

Explanation

Develop a range of information and resources for employees based on the provisions in existing legislation in relation to the rights to request flexible work arrangements; benefits of quality flexible work; and “how to” guidance on requesting flexible work.  Employers may also need information to assist them to deal with requests from employees to change working conditions.

Under the Employment Relations Act employees can request changes to their working conditions when negotiating or seeking a variation to an employment agreement.  If an employee requests flexible working arrangements, employers are required to act in good faith and consider and respond to the request.  In responding to a request, employers must not do anything to mislead or deceive, or that is likely to mislead or deceive, the employee. 

Roles and Responsibilities

Employee:- onus is on employee to make request

Employer:- required to consider and respond to request in good faith

Unions:- promote information on existing rights; assist employees to make requests; bargain for collective agreements to have a framework for managing flexibility

Government:- develops and promotes information

Employer Groups:- provide employers with guidance on how to manage flexible work in the workplace

EXAMPLE
Paid Parental Leave
The Department of Labour produces a paper based resource An employee’s guide to parental leave that covers:

  • entitlements for employees under the Parental Leave and Employment Protection Act 1987;
  • procedures to follow when applying for leave; and
  • requirements around returning to work.

Information is also available from the Department’s contact centre and website www.ers.govt.nz/parentalleave/ including an on line calculator for entitlements, and information for employers.

 

 How can the ability of employees to access and use quality flexible work be increased?
  • Provide legislation with more specific provisions about employees’ rights to request flexible work

Explanation

The right to request flexible work, the process to be followed and the grounds for acceptance/refusal could be covered in legislation .

The extent of the right to request could range from having a low level of justification for the request with few grounds for refusal through to higher level of justification and a wider range of grounds for refusal (see the United Kingdom example below).

Areas that legislation could cover include:

  • Who qualifies for the right to request.  Legislation could cover certain groups, for example parents with children or those looking after elderly dependents, or cover all employees regardless of whether they have caring responsibilities.  Particular groups could be prioritised with staged introduction for others.
  • What can be requested, for example changes to hours, place of work, and times of work.
  • How often a request can be made.
  • Process for dealing with the request.
  • Grounds for accepting or refusing a request, for example business impact, performance, tenure.
  • Process for appealing a decision by the employer.

Roles and Responsibilities

Employee:- onus is on employee to make request

Employer:- deals with requests in line with legislation; makes information on the right to request available for employees

Unions:- promote information on the right to request; assist employees to make requests; bargain for collective agreements to have a framework for managing flexibility

Government:- enacts legislation, provides guidance on implementation

Employer Groups:- provide employers with guidance on how to manage flexible work in the workplace

EXAMPLE
The right to request in the United Kingdom
The UK introduced the right to request flexible work in 2003.  It applies to parents of children under 6 years of age, and parents of children with a disability under 18 years of age.  It enables employees to request a change to their hours of work; the times they work; or where they work.
It also establishes the process to be followed by employers and employees and the specific grounds employers could use for refusal.  From April 2007 the law will extend the right to request flexible working to carers of adults.
For more information see Department of Trade and Industry’s Flexible working: the right to request and the duty to consider – a guide for employers and employees www.dti.gov.uk/files/file21364.pdf


How can workplaces effectively achieve quality flexible work?
  • Provide formalised guidelines for employers on how to implement and manage quality flexible work options.

Explanation

Develop and formalise guidelines for employers on introducing and managing quality flexible work practices in workplaces.  For example a code of good practice for flexible working could be developed, through consultation with employers and unions, under the Employment Relations Act.

Note: codes can be developed under the Employment Relations Act, however such codes are not binding (guidance only).

Roles and Responsibilities

Employee:- onus on employee to make request

Employer:- can use guidelines to help manage flexible work; still required to consider and respond to any request in good faith

Unions:- can work with employers and government to develop guidelines; can assist employees with requests; can bargain for collective agreements to have a framework for managing flexibility

Government:- develops and promotes guidelines (with employers and unions)

Employer groups:- can work with government and unions to develop guidelines

EXAMPLE
Code of good faith in collective bargaining
A Code of Good Faith has been developed under the Employment Relations Act to provide guidance on "good faith" in bargaining.  The Code also helps parties to identify all the things they should be considering when bargaining in good faith.
www.ers.dol.govt.nz/goodfaith/code.html

How can workplaces effectively achieve quality flexible work?
  • Government, employers, employees and unions work in partnership to implement and manage quality flexible work

Explanation
Government, employers, employees and unions can work in partnership to champion flexible work across industry sectors, jointly develop and promote information and resources, and ways to monitor changes to availability and take up of quality flexible work.

Employers, employees and unions can work in partnership to develop and implement quality flexible work practices at individual workplaces.  Examples include using collective agreements to provide the framework for managing flexibility; or jointly identifying and implementing flexible work solutions and measuring their effectiveness.

These actions can sit outside legislation.  An alternative is to require, under legislation, that collective agreements contain a framework for managing flexibility.

Roles and Responsibilities

Employee:- involved in developing initiatives at the workplace level; can still make individual request

Employer:- involved in developing initiatives at the workplace level: still required to consider request in good faith

Unions:- involved in developing initiatives at the workplace level; works with employers and government to develop resources; can bargain for collective agreements that include quality flexible work

Government:- develops and promotes resources (with employers and unions)

Employer groups:- can work with government and unions to develop resources

EXAMPLES
Collective agreements - Annualised hours for dairy workers*
Workers at New Zealand Milk Products, the manufacturing arm of Fonterra, are employed under a system of annualised hours. Dairy Workers Union technical officer, Angus McConnell, says workers are required to do a certain number of hours a year and get a regular salary paid out at a consistent level over 12 months.

“Once you’ve done your hours, you’ve finished your obligation,” says Angus. The system meets the needs of an industry which has huge seasonal differences and gives workers a known and consistent income. It protects their existing earnings around allowances and gives them a known and guaranteed number of hours.

Angus says annualised hours have changed the mindset of workers and the culture of the workplace. Some staff work all their hours and then have extended periods of leave. Where there used to be a lot of overtime worked, “now they just want to do their hours and get out of there”.
* From “It’s about time: a union guide to work-life balance” NZCTU 2004 available at  www.union.org.nz/

Leadership - Workplace Productivity
Business New Zealand, NZCTU, Chambers of Commerce and the Department of Labour work together to promote productivity and develop practical tools for workplaces.  This has included the Productivity Snapshot Toolkit, workshops across the country on productivity and case studies of productivity in action.
www.dol.govt.nz/workplaceproductivity/

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