On 5 April employment lawyer Peter Cullen had an article in the Dominion Post on the employment law changes that came into effect on 1 April.
These included the extension of the 90-day trial period for new employees to all firms.
The article concluded: “The changes generally represent a shift of power to employers.”
In fact they represent no such thing. The comment reflects the old ‘imbalance in bargaining power’ idea with its Marxist origins.
It’s not hard to see the fallacy.
Start with a world without any statutory provisions about so-called ‘unfair’ dismissals. Then bring in such a rule. What will happen?
Clearly something will change, because employers now face the risks and costs of being found to have unjustifiably dismissed an employee. In the first instance the costs will fall on them. But clearly they will have to shift them – in competitive markets they have no alternative…
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Utopia, you are standing in it! 
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