Chief Executive's Overview

This is my first Annual Report as Chief Executive of the Department of Labour, and I am energised by the challenges we face. The past year has been a very busy one for the Department, highlighted by a strengthening of capability both internally and externally to enhance the labour market.

The Department’s focus is on improving the performance of the labour market by enhancing the contribution of workers, employers and migrants to the economic and social future of New Zealand. We are aiming to expand the workforce, encourage improved productivity and make certain the workforce and workplaces are resilient and able to grow in a changing economic climate. The Department’s work supports these outcomes. By working together in this way, the Department is able to respond effectively to its environment and to New Zealand labour market needs.

Meaningful work is work that is rewarding and gives a sense of pride and purpose. With skill shortages likely to be a continuing feature of the New Zealand economy, it is critical that New Zealanders are given opportunities to fully realise their potential through meaningful work and that the country makes the most of its potential workforce and their skills.

To support the Government’s priority of social and economic transformation, the Department is focused on productive work and high-quality working lives for all New Zealanders. During the year, the Workplace Productivity Reference Group focused on establishing a clear vision of the future workplace and worked with partners to develop and demonstrate initiatives that improve workplace performance. Lifting workplace productivity over the long-term will boost economic growth and the living standards New Zealanders enjoy.

Strengthening business capability to support managers and workers to better develop and utilise their skills has been an ongoing focus for the Department. To help achieve this, the Department led the development of the New Zealand Skills Strategy. We are also implementing the multi-year Upskilling Partnership Programme, designed to increase the number of workplaces engaging in workplace literacy programmes through the creation of upskilling partnerships.

During the year, a number of areas for organisational capability development within the Department were identified to lift performance. This is part of a long-term programme to develop foundation capabilities. It focuses on systems and processes that allow the organisation to operate effectively and manage its resources and performance. The areas for development include management and leadership development, financial management, planning and performance, risk management and infrastructure development.

A number of legislative changes during the year focused on strengthening basic rights at work. The Employment Relations (Breaks and Infant Feeding) Amendment Act provides for people working an eight hour day to be entitled to two paid ten-minute meal breaks and also for employees who wish to feed their infants to have access to facilities and breaks for this purpose. The Employment Relations (Flexible Working Arrangements) Amendment Act 2007 provides employees with caring responsibilities the right to request flexible work. Also, a review of the minimum wage during the year resulted in it being based on experience rather than age. The Holidays (Transfer of Public Holidays) Amendment Bill allows for the transfer of public holidays for someone who works a shift that crosses the hour of midnight on a public holiday.

In the context of a relatively tight labour market and an ageing population, injury prevention is important. The Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) continued a commitment to a fair and sustainable Accident Compensation Corporation (ACC) scheme through reducing the incidence and impact of personal injury. The amendments change cover for work-related injuries, eligibility and entitlement to weekly compensation, and entitlement and processes for vocational rehabilitation.

Given the level of competition that exists for skilled workers around the world, a major challenge for the Department is ensuring New Zealand remains attractive to the kind of migrants we seek. Linked with this, the Department is well advanced in strengthening its capability to provide the immigration services New Zealand will need in the future. A new Immigration Bill was drafted in 2007/08. Among other things, it seeks to simplify the current visa and permit system to facilitate the entry of people to New Zealand, expand the protection system to meet our international obligations and enable more flexible decision-making. The Department supported the Transport and Industrial Relations Select Committee during its consideration of the Bill.

The Department is continuing to progress its Immigration Business Transformation business case in line with Cabinet’s direction. This programme of work reflects a need for immigration systems that can adapt quickly to changes in the global and national environment and rapidly identify opportunities to manage risks and add value. The strengthened capability that results will underpin all aspects of the Department’s work.

During the year, almost five thousand Recognised Seasonal Employer (RSE) visas and permits were approved, helping to meet seasonal labour shortages in the horticulture and viticulture industries and significantly boosting the skills and economies of Pacific nations. An evaluation of the policy began in May, focusing on how the scheme has been implemented.

Late last year, the Department launched a pilot programme – Magnet – which seeks to attract highly skilled migrants to New Zealand to address skill shortages in specific occupations. The programme uses Google™ advertising to encourage people from the United States and the United Kingdom to register if they are interested in migrating to New Zealand. Initial results of the Magnet programme are very encouraging, and work on it will continue next year.

The Department ensures New Zealand benefits from international best practice, builds its international influence and meets its international obligations and interests. In line with this, the Department represented New Zealand at the International Labour Organisation (ILO) Governing Body meetings and coordinated New Zealand’s tripartite delegation to the 97th Annual International Labour Conference. A significant piece of work was our involvement in the completion of negotiations with China and the Memorandum of Understanding on Labour Cooperation signed as part of the free trade agreement.

Finding durable, effective solutions to ongoing management challenges has been the basis of a number of reviews outlined during the year. These include a review of the Pacific Division, and two further reviews relating to processes and practices affecting the wider Immigration Service. The Pacific Division review was commissioned by the Department, while the others are being conducted by the Office of the Auditor-General and the State Services Commission. The work of the Department will be enhanced by the reviews, as they will help us fully understand the issues we face so we can move forward in a positive way.

The task of improving workforce and workplace performance is not solely the responsibility of the Department of Labour. During the year, we worked very closely with our social partners, the New Zealand Council of Trade Unions and Business New Zealand, to develop our understanding of the labour market. We also liaised with local and regional organisations, and with other government departments and agencies, on employment, skills and workplace trends and needs.

More information on our achievements during the 2007/08 year is outlined in the pages that follow. I would like to thank all those within the Department, and others who have worked closely with us, for these results.

Christopher Blake
SECRETARY OF LABOUR

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