Expanding the workforce

The workforce can grow in two ways: by increasing the numbers of New Zealand citizens or residents entering the labour market or by increasing the numbers of migrant workers or temporary workers joining the New Zealand workplace. The Department has undertaken initiatives in both of these areas.

During the year, barriers to entering or re-entering the labour market were reduced, assuring employers and organisations access to the wider range of skills and abilities they need.

The Department leads the Government's work programme on enhancing parents' and other carers' choices about work and family arrangements, and the programme supporting the transition for youth into employment. We have been instrumental in the development and evaluation of paid parental leave provisions, which has resulted in more than 20,000 parents accessing government-funded paid parental leave every year.

The Department has continued to play a key role in ensuring full participation of disabled people in the labour market, by supporting the passage through Parliament of the Disabled Persons Employment Promotion (Repeal and Related Matters) Bill, which was enacted in March 2007.

Managed immigration is also important for the economy. The Government has taken significant policy, legislative and organisational initiatives to ensure we can get the migrants we need and control the entry of those we do not. We have strengthened the legislative framework for immigration through a review and redesign of the Immigration Act 1987 and promotion of the Immigration Advisers Licensing Act 1987.

The Skilled Migrant Category, which provides residence opportunities for skilled people coming to New Zealand, was reviewed to ensure this country remains well positioned to attract quality workers in a globally competitive environment. A noticeable trend for this year was a 19 per cent increase in work application decisions, reflecting the global trend of an increasingly mobile workforce.

The Department worked closely with a number of Pacific countries to kick-start the new Recognised Seasonal Employer scheme. When there are no New Zealand workers available, the scheme gives priority to workers from the Pacific for seasonal work in the horticulture and viticulture industries in planting, maintaining, harvesting and packing crops. The initiative addresses seasonal labour shortages experienced by the horticulture and viticulture sectors, whilst at the same time boosting the skills and economies of Pacific nations.

Better work

The Department continues to work actively with sector groups and industry on increasing productivity, and to ensure workplaces are safe and attractive for workers.

This year the Department of Labour, in collaboration with the New Zealand Council of Trade Unions and Business New Zealand, launched the 'Decent Work - Charting our Progress' website, which establishes New Zealand as leading in the promotion of valuable working lives for our workforce. This reflects the International Labour Organisation's (ILO) primary goal of decent work for all workers. i.e. work that is productive and delivers a fair income in conditions of freedom, equity and security in line with human dignity. In the current environment of labour and skills shortages, it is important that New Zealand workplaces are attractive to workers, and this initiative strongly supports that goal.

The Department met or exceeded all targets across the range of workplace services it delivers. This includes the provision of information, diagnostic assessments and enforcement. A high proportion of workplaces met requirements for practice change, or heard about and saw useful methods and then changed their practice, through interaction with the Department. The consequence has been enduring change in workplace practice.

The first pay and employment equity case study was produced by the Department, and more case studies of productivity and social partnership were developed. These are used by the Department and by our delivery partners to demonstrate how to raise the value of work, increase social dialogue, and improve the quality of all working lives.

Working better

To develop the skills of New Zealand workers, the Department implemented the Upskilling Partnership Programme. This was designed to engage employers and workers in foundation skills training, and improve the evidence base on what forms of training work best and what the business benefits are from investing in foundation skills.

For the first time, the Department developed a set of 12 annual in-depth regional labour market reports. These will improve knowledge of the regional labour market among strategy and policy-makers, labour market participants and other stakeholders with an interest in each region's labour market. The Department has also contributed to positive progress towards labour market development in all regions.

Ongoing legislative work includes a suite of proposed changes to the Injury, Prevention, Compensation and Rehabilitation Act, and ratification of ILO convention 155 by New Zealand, which provides an opportunity to highlight and promote our approach to occupational safety and health, both domestically and internationally.

Working with others

The Department of Labour cannot improve workforce and workplace performance on its own. To develop our understanding of the labour market, we continue to work closely with our social partners, the New Zealand Council of Trade Unions and Business New Zealand. We also liaise with local and regional organisations and with other government departments and agencies on employment, skills and workplace needs and trends.

More detail on our achievements in 2006/07 is set out in the pages ahead. A significant amount of progress has been made, much of it under the leadership of Dr James Buwalda, who retired as Secretary of Labour in May. I thank all those within the Department and others who have worked with us for these results.

Graham Fortune

Secretary of Labour (Acting)