STATEMENT OF FORECAST SERVICE PERFORMANCE FOR 2006/2007

VOTE LABOUR

Output Class: Policy Advice - Labour

Scope

This output class includes policy advice and facilitation of policy implementation through developing and delivering tools and resources, research and evaluation about the labour market and workplace practices. The output class also includes ministerial servicing, and administrative and advisory support to the National Advisory Council on the Employment of Women (NACEW) and the National Occupational Health and Safety Advisory Committee (NOHSAC).

For New Zealand to become a world leader in workforce and workplace performance, it is important that workplace participants understand and demonstrate excellent workplace practices. Through setting minimum standards, defining decent workplace practice, providing information and operating enforcement services, poor practice will be reduced.

The Department’s research and evaluation increases knowledge about labour market trends, informing policy development and enabling sectors and regions to identify and act on labour market constraints and opportunities.

Developing advice and policy around workplace practices and obligations, in particular those relating to work-life balance, enables New Zealand workplaces to better understand how to balance employers’ and employees’ needs and interests.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:

Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high-quality working life.

Our people: All New Zealanders will be able to grow and develop through access to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New Zealand workplaces to become high-performing workplaces, and to achieve high-quality working lives by focusing on the drivers of workplace productivity, including skills, safe and healthy workplace cultures, decent work, and excellent employment relationships.

Activities

We do this by:

advising on workplace best practice, regulation, issues and gaps, and interventions that will support the Government’s labour market, employment relations, and workplace health and safety goals
carrying out research and evaluation to understand labour market trends, international developments, identify issues and gaps, and assess the effectiveness of the Department’s interventions
supporting pay and employment equity in the public sector
providing administrative, advisory and research services to NACEW, and administrative support for NOHSAC
providing ministerial servicing.

Performance measures	Forecast standards
The Minister is satisfied with the quality of the Department’s policy advice. Appendix 1 to this part of the SOI sets out the quality standards for policy advice.	Meet standard
The policy process and advice is assessed as good quality through external and internal review of specific projects.	Meet standard
The Minister is satisfied with the quality of the Department’s ministerial servicing.	Meet standard
The NACEW and NOHSAC are satisfied with the quality of the Department’s support services.	Meet standard
Policy advice and ministerial servicing will be delivered as agreed with the Minister of Labour.	As detailed in the Department’s Output Plan for 2006/07

COSTS

$000 (FIGURES ARE GST EXCLUSIVE)	Estimated Actuals for Year ending 30 June 2006	Forecast for Year ending 30 June 2007
Revenue:
Crown	14,449	15,203
Department	54	54
Other	60	-
Total Revenue	14,563	15,257
Total Expenses	12,563	15,257

Output class: International services

Scope

This output class involves managing the Department’s multilateral, bilateral and regional engagement and influencing international labour and related employment issues. The Department represents New Zealand’s interests internationally by:

proactively building and enhancing relevant domestic and international relationships
ensuring New Zealand is seen to meet its international obligations
identifying international best practice
profiling New Zealand’s best practice overseas
ensuring Ministers are advised of relevant international labour-related issues.

The output class includes responsibility for managing the government’s obligations and interests through the International Labour Organisation, the negotiation of the labour components of free trade agreements and closer economic partnerships, and implementing the labour component of these agreements once they enter into force.

Participation in and influencing international labour institutions ensures that New Zealand’s voice is heard, with the Department contributing to the setting of relevant and effective international standards. The provision of international best-practice information assists the development of New Zealand’s standards. Involvement in the negotiation and implementation of bilateral and multilateral trade initiatives creates on-going international relationships to benefit New Zealand.

Contribution to the long-term goals

These services contribute to the following of the Department’s goals:

Our place in the world: New Zealand will prosper though its connections with the rest of the world.

Contribution to the medium-term priorities

These services contribute to supporting New Zealand’s prosperity through:

• building relationships and partnering with other nations
• support for Pacific nations.

Activities

We do this by:

leading the negotiation of the labour component of New Zealand’s free trade and closer economic partnership agreements
leading the implementation of the labour component of New Zealand’s free trade and closer economic partnership agreements
providing advice and support to Ministers on relevant international labour issues
participating in and influencing international labour institutions/forums on labour and employment issues
managing Asia-Pacific Economic Cooperation (APEC), United Nations and Organisation for Economic Cooperation and Development (OECD) commitments and obligations related to the labour portfolio
managing the Department of Labour international visitors’ strategy
managing Australian bilateral relations as they relate to the Labour portfolio
ensuring New Zealand meets its International Labour Organisation (ILO) reporting obligations by providing regular reports on New Zealand’s compliance in law, policy and practice with ILO Standards, and by consulting with designated organisations of employers and workers on such reports
reporting to Parliament on the text of newly-adopted ILO standards as required by the ILO constitution
coordinating inter-departmental advice to Ministers on the implications of ratifying ILO Conventions
coordinating the Department’s input to ILO Pacific capability building
developing and coordinating the Department’s process for managing technical assistance requests from other countries (particularly the Pacific)
administering and coordinating the tripartite steering group and officials working group developing New Zealand’s Decent Work: Charting our Progress project.

Performance measures	Forecast standards
The Minister is satisfied with the quality of policy advice provided on international labour issues relating to the labour portfolio. Appendix 1 sets out the quality standards for policy advice.	Meet standard
The Department manages and/or provides representation of New Zealand’s labour interests in multilateral forums, communicating domestic best practice internationally and building on our reputation.	The Department expects to participate in three International Labour Organisation (ILO) Governing Body meetings. The Department also expects to attend the annual ILO Conference in June. We expect a continuing focus on coordinating New Zealand’s contribution to the APEC Labour and Social Protection Network of Human Resources Development Working Group. Department of Labour officials will continue to participate in the negotiation and implementation of labour components of free trade and close economic partnership agreements. The Department will implement the Arrangement on Labour between New Zealand and the Kingdom of Thailand and the Memorandum of Understanding on Labour Cooperation between Brunei, Chile, New Zealand and Singapore. The Department is expecting trade negotiations to be underway with a number of countries.
New Zealand will be seen to meet its obligations under Articles 13, 19, 22 and 23 of the ILO Constitution, which provide reporting requirements and obligations for tripartite engagement.	Department officials will manage ILO reporting obligations and engage with the tripartite partners as appropriate over the period.
The level of international interest in New Zealand law, policy and practice as examples of best practice, demonstrated through formal requests for bilateral participation, visits, assistance or advice, will be reported on quarterly.	Department expects to receive 15 to 20 visits over the period.

COSTS

$000 (FIGURES ARE GST EXCLUSIVE)	Estimated Actuals for Year ending 30 June 2006	Forecast for Year ending 30 June 2007
Revenue:
Crown	889	817
Department	10	10
Other	-	-
Total Revenue	899	827
Total Expenses	899	827

Output class: Services to promote and support fair and productive employment relationships

Scope

This output class includes the provision of information, guidance, investigation, mediation and decision-making regarding employment rights and upholding minimum standards. This includes the support services provided to employment relations institutions.

For New Zealand to become a world leader in workforce and workplace performance, it is important that workplace participants understand and demonstrate excellent workplace practices. Through a mix of public pressure, regulation and commercial pressure, we will reduce undesirable behaviours that may have been tolerated in the past.

The following elements will be required to achieve high-performing workplaces:

Parties having a shared understanding of the factors that lead to workplace productivity and agreement on goals.
New Zealand workplaces are better able to effectively balance employers’ and employees’ needs and interests through access to tailored, targeted and useful information and tools about good employment practices.
This is supported by investigating complaints and enforcing minimum standards and the provision of mediation services.
A regulatory environment that supports productivity by encouraging an inclusive view of workplace issues, encouraging and rewarding best practice, and providing sanctions for breach of minimum standards.
Interventions that focus on addressing underlying causes rather than symptoms, both at the strategic and sector level and at the firm level.
Sectors and industry being supported to step up to lead and encourage best practice.

Contribution to the long-term goals

These services contribute to the department’s long-term goals:

Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high-quality working life.

Our people: All New Zealanders will be able to grow and develop through access to well-paid and meaningful employment.

Contribution to medium-term priorities

The drivers of productivity include investing in skills, safe and healthy workplace cultures, decent work and excellent employment relationships.

By focusing on these workplace productivity drivers, the services provided in this output class contribute to transforming New Zealand workplaces into high-performing workplaces, and to achieving high-quality working lives for New Zealanders.

Activities

We do this by:

providing information and tools about good employment practices that help employers and employees prevent or reduce the frequency and impact of employment relationship problems
supporting union and employer relationships
providing mediation services that help resolve employment relationship issues
investigating complaints and enforcing minimum standards
providing support services to the Employment Relations Authority and Remuneration Authority
administering the Employment Relations Education Fund for developing and running training courses that aims to increase employees’ and employers’ understanding of employment relations, and health and safety.

Performance measures	Forecast standards
The percentage of workplaces improving workplace practices following a Departmental intervention.	This will be measured by sampling data from the new information system in 2005/06, which will set the benchmark for comparison in future years.
The percentage of customers satisfied with the Department’s services, information and tools.	80%
The Chief of the Employment Relations Authority and Remuneration Authority Chair are satisfied with the Department’s support services (scale 1–5).	4 or higher
Percentage of investigations into complaints regarding breaches of minimum standards of employment legislation completed within six months of receipt.	90%
Percentage of renewal investigations of minimum wage exemptions completed within one month of expiration of the exemption.	100%
Percentage of forums and workplace visits provided by the Department that target priority areas.	80%
Percentage of employment relation problems settled before or at mediation.	75%

COSTS

$000 (FIGURES ARE GST EXCLUSIVE)	Estimated Actuals for Year ending 30 June 2006	Forecast for Year ending 30 June 2007
Revenue:
Crown	21,908	21,744
Department	152	152
Other	202	202
Total Revenue	22,262	22,098
Total Expenses	21,262	22,098

Output class: Services to promote and support safe and healthy people and workplaces

Scope

This output class includes the provision of information, education and support for workplaces regarding effective workplace health and safety practice, and enforcement action to promote compliance with the HSE Act.

Improving workplace practices and conditions promotes sustainable employment and increased participation in the workforce. Through encouraging and influencing employers and employees to demonstrate excellent workplace practices, New Zealand can lead the world in workforce and workplace performance.

Past undesirable behaviours that may previously have been tolerated, will be reduced through a mix of public pressure, regulation and commercial drivers.

The following elements will be required to achieve high performing workplaces:

Parties having a shared understanding of the factors that lead to workplace productivity and agreement on goals.
Access to tools and tailored, targeted and useful information and services around employers’ and employees’ obligations regarding good health and safety practices.
Investigation of complaints and enforcement of minimum standards to reduce occupational injuries and disease.
A regulatory environment that supports productivity by encouraging an inclusive view of workplace issues, encouraging and rewarding best practice, and providing sanctions for breach of minimum standards.
Interventions that focus on addressing underlying causes rather than symptoms, both at the strategic and sector level and at the firm level.
Sectors and industry being supported to step up to lead and encourage best practice.

The Department targets specific hazards and issues, industry sectors, and occupational activities and processes associated with the highest rates of illness or injury, or that have a potential for catastrophic failure. The priorities include airborne substances, workplace vehicles, manual handling, slips, trips and falls, and psychosocial work factors.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:

Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high-quality working life.

Our people: All New Zealanders will be able to grow and develop through access to well-paid and meaningful employment.

Contribution to the medium-term priorities

Safe and healthy workplace cultures are one of the productivity drivers. By also investing in workers’ skills, providing decent work and maintaining excellent employment relationships, productivity is increased. The services provided by this output class support and promote high-quality working lives for New Zealanders, and the transformation of places of work to become high-performing workplaces.

Activities

We do this by:

influencing societal attitudes on the benefits of good workplace health and safety practice
raising awareness of workplace participants’ rights and obligations under the Health and Safety in Employment Act 1992 (HSE Act)
leading the development of national workplace health and safety initiatives across government and industry sectors, and working with industry sector organisations and other agencies to develop and promote workplace health and safety
providing information and advice to help individuals, workplaces and industry sectors understand the legislation and apply best practice health and safety
assessing workplace health and safety performance, responding to notifications, complaints, incidents and fatalities
identifying breaches and taking appropriate compliance or enforcement action to reduce deliberate or serious breaches of the HSE Act minimum standards.

Performance measures	Forecast standards
Percentage of workplaces improving workplace practices following a Departmental intervention.	This will be measured by sampling data from the new information system in 2005/06, which will set the benchmark for comparison in future years.
Percentage of customers satisfied with the Department’s services, information and tools.	80%
Percentage of forums and workplace visits provided by the Department that target priority areas.	90%
Percentage of investigations completed within five months of notification of the event.	90%

COSTS

$000 (FIGURES ARE GST EXCLUSIVE)	Estimated Actuals for Year ending 30 June 2006	Forecast for Year ending 30 June 2007
Revenue:
Crown	27,621	27,806
Department	599	624
Other	300	300
Total Revenue	28,520	28,730
Total Expenses	27,020	28,730

Output class: Services to promote and support the safe management of hazardous substances in the workplace and amusement devices

Scope

This output class includes provision of information, education and enforcement services relating to the safe management of hazardous substances in the workplace, and the registration and inspection of amusement devices.

For New Zealand to become a world leader in workforce and workplace performance, workplace participants need to understand and demonstrate excellent workplace practices. Through a mix of public pressure, regulation and commercial pressure, we will reduce undesirable behaviours that may have been tolerated in the past.

The following elements will be required to achieve high-performing workplaces:

Parties having a shared understanding of the factors that lead to workplace productivity and agreement on goals.
Access to tools and tailored, targeted and useful information and services around employers’ and employees’ obligations regarding the safe management of hazardous substances.
Investigation of complaints and enforcement of minimum standards to reduce occupational injuries and disease.
A regulatory environment that supports productivity by encouraging an inclusive view of workplace issues, encouraging and rewarding best practice, and providing sanctions for breach of minimum standards.
Interventions that focus on addressing underlying causes rather than symptoms,both at the strategic and sector level and at the firm level.
Sectors and industry being supported to step up to lead and encourage best practice.

The Department targets specific hazards and issues, industry sectors, and occupational activities and processes associated with the highest rates of illness or injury, or that have a potential for catastrophic failure. Interventions are aimed at bringing about significant medium-to long-term improvements.

This output class is closely related to the previous one, as they are both focused on enabling people to take responsibility for achieving safe and healthy workplaces. Activities within this output class will sometimes be carried out alongside activities under the previous output class.

Contribution to the long-term goals

These services contribute to the Department’s long-term goal:

Our workplaces: New Zealand workplaces will lead the world in maximising the value of work while providing a high quality working life.

Contribution to the medium-term priorities

By focusing on the workplace productivity drivers, including safe and healthy workplace cultures and decent work, these services contribute to supporting and promoting the transformation of places of work to become high-performing workplaces and to achieve high-quality working lives for New Zealanders.

Activities

We do this by:

raising awareness of workplace participants’ rights and obligations under the Hazardous Substances and New Organisms Act 1996 (HSNO Act)
collaborating with industry sector organisations and agencies to develop and promote safe management of hazardous substances
providing information and advice to help individuals, workplaces and industry sectors understand legislation and apply best practice health and safety
assessing the management of hazardous substances in the workplace, declaring emergencies and ensuring satisfactory management, and responding to and investigating notifications, complaints, incidents and fatalities
identifying breaches and taking appropriate compliance or enforcement action under the HSNO Act
advising the Environmental Risk Management Authority (ERMA) and the Ministry for the Environment
carrying out delegated approvals on ERMA’s behalf, managing contracts with territorial authorities or delegated parties for the provision of HSNO compliance activities
registering and inspecting amusement devices.

Performance measures	Forecast standards
Percentage of customers satisfied with the Department’s services, information and tools.	80%
The Environmental Risk Management Authority is satisfied with the quality of the Department’s support services.	Meet standard

COSTS

$000 (FIGURES ARE GST EXCLUSIVE)	Estimated Actuals for Year ending 30 June 2006	Forecast for Year ending 30 June 2007
Revenue:
Crown	1,966	4,164
Department	16	16
Other	1,774	-
Total Revenue	3,756	4,180
Total Expenses	3,756	4,180