New commitment to employment

Press, 24 September 1983, Page 16

New commitment to employment

From

BRIAR WHITEHEAD,

io Wellington

A fresh package of ideas to promote employment is being put together in the Government caucus. The caucus committee on employment has been working all year, interviewing State and private sector employers and unions, women’s and other special interest groups, and searching for the best ideas overseas. The quest began last year with the special Government Task Force on Youth Unemployment. It quickened as rising unemployment figures threatened unhappy social and political consequences. Registered unemployed levels at 78,000 are now almost double those of the same time last year. The turn about in migration is bringing thousands more people back into the country — 23,000 for the year to August, compared with only 4900 for the previous 12 months. New technology is displacing workers, at least until education and job training catches up with new job needs. Employers are reluctant to take on new labour because of the recession and because of the cost of redundancy agreements. They show a preference for using overtime, new technology, and greater efficiencies to increase production, not additional labour. One of the caucus’s initiatives has just surfaced as legislation to bring in youth pay rates — an attempt to induce employers to take on young people. Sixty per cent of the registered unemployed are under the age of 25. The caucus’s central thesis is that employment will not really pick up until the hoped-for recovery in the economy, but there is talk that the American recovery might be short-lived and the global recovery slow. So, while the caucus is working

on ways to diversify the economy, to introduce efficiencies, and to market New Zealand products better, it is also working on several job-creating ideas. None of these by themselves are great job producers, but together they promise thousands of jobs. Some of the ideas are a fresh assault on the old road-blocks, such as part-time employment. This is again meeting resistance, but hopes are high that this time a breakthrough can be achieved. Others are brand new schemes, such as capitalisation of the unemployment benefit to start a business. Among the ideas are:— © Part-time employment* The committee is looking to the State sector to set the example. The member who has worked hardest on the part-time package, Mr Bruce Townshend (Kaimai) says that up to 5000 new jobs could be created in the State sector alone if the State Services Commission (the employing body) and the unions would give way on traditional positions. Many people in the public service have full time jobs but do not want them, says Mr Townshend. If they could be assured that they would not lose their privileges, or the job, by having the position down-graded from full time to part-time, they would happily make room for another part-timer — making two jobs in the place of one. The commission says that it is interested in part-time workers only in the “special purpose, shortterm” sense. It is not keen to extend full-time privileges to parttimers. Such privileges would prohibit sacking except over disciplinary matters. The unions, on the other hand, are not willing to let part-timers work outside normal hours at

ordinary rates of pay. This would limit the number of jobs that could be made available because of cost constraints. An extension of ordinary pay rates into the evenings would also get round need for more office furniture. Two people would be less likely to over-lap if working hours were spread wider. The unions have no fear that part-time work will erode full time career positions. “If parttime jobs are set at a level of, say, 10 per cent of all jobs in the State Service, that’s security for us,” said the secretary of the Combined State Unions, Mr Bmce Tucker. The committee intends that part-time status should be voluntary. © Job-sharing: The main impediment to job-sharing lies with workers. They have not adjusted to the idea of applying for a position jointly with someone else. Employers are open to the idea as long as two workers have a firm arrangement They prefer any two workers who are job-sharing to take up the position and leave it, as one. The State Services Commission has approved every jobsharing scheme formally before it, but has only had four applications. • Four over five: The committee has taken this idea from a successful Canadian scheme which has worked particularly well with teachers. An employee works for four years at 80 per cent of full time pay and takes leave for the whole of the fifth year on the accumulated balance, which is also 80 per cent. The job is kept open for him, but during his absence another worker takes it up. This trains the fill-in worker, or provides a skilled worker who might otherwise be unemployed with a job. ® Women and a social conscience: Some women work whose husbands are well paid, the committee contends. These women could

be exhorted to give up their jobs for those needing the income. “Married women talk about getting a sense of worth from a job,” says the committee’s chairman, Mr Geoff Thompson. “Sense of worth can also come from doing voluntary work for someone else.” © Early retirements: Christchurch Teachers College lecturers make the committee’s point Twentyeight lecturers are willing to retire early to bring the number of positions for lecturers in to line with reduced student intakes. Only 16 early retirements were sought Mr Thompson talks of bringing eligibility for National Superannuation down to the age of 55. “At that stage many people have paid off their homes, have assets and other income,” he says. “A lot of people who really want to ‘get out’ are just hanging in there for their super. “National Super at the age of 55 would be an inducement for them to do what they really want to — get out” Although this would be a charge on the State, jobs would be made available to younger, and in some instances, more productive workers. • Raised school leaving age: It would cost $lB million to raise the school leaving age to 16. The purpose would be to train in work skills those pupils who would have left at 15 with little to offer an employer. The package has yet to be accepted by the Cabinet and would need a further outlay to equip schools with job-oriented curricula and teachers. © Benefit wage: To build morale and skills in the young unemployed, the committee suggests payment of the unemployment benefit to employers. They would then take on a young worker for a number of hours at union rates to the full value of the benefit. © Military training: The capacity of the Armed Forces to train up to

1000 young people a year in basic skills such as store-keeping, clerical work, and driving is also under consideration but is less likely to be acted upon. © Benefit capitalisation: The committee is looking closely at a British scheme in which unemployed people on the benefit can cash in six months of its value and invest it in a small approved business enterprise. 0 Redundancy: High costs of laying off workers have made employers reluctant to take on new ones. Options before the committee are to make redundancy payable weekly until such time as the laid-off worker finds another job, and to make redundancy payable only after a longer service as an employee of the stricken firm. ® Social work schemes: These have been too many, too confusing, and not well enough promoted, says Mr Thompson. “People don’t realise what’s available.” Schemes are being combiined, simplified, and better promoted. Regional authorities are being asked to identify work needs in their areas so that schemes can be specially tailored. Model local authorities are being held up for emulation. The Waipa County Council’s innovative use of existing job schemes has created 600 new jobs, and 400 more are on the way. The 1000 jobs will last for two years. Community service groups are being encouraged to employ subsidised labour. The committee says that the Government has got to give greater commitment to employment “At present, the only open-ended Budget Vote is Labour,” said a committee member. “Ministers have yet to see that their portfolios are involved in job creation. At the moment they’re inclined to toss out a good job-creating idea because it might cost $5 million.”