June 17, 2016
90-day trials fail to deliver jobs for Maori
A new paper prepared for Treasury by economic research firm Motu has found 90-day work trials has failed to increase the likelihood of Maori being given jobs.
The trials were introduced by the new National Government in 2009 with the claim they would result in more young people, beneficiaries, Maori or Pasifika being given jobs.
Motu found no evidence that the policy increased the probability that a new hire by a firm would be within that range of disadvantaged jobseekers, and no new jobs were created by the policy.
The main benefit of the policy was a decrease in dismissal costs for firms, while many employees faced increased uncertainty about their job security for three months after being hired.
Labour’s workplace relations spokesperson Iain Lees-Galloway says the study shows the trials have failed and are inherently unfair.
He says the also found previous studies into the 90-day trials – which were much-touted by National – were based on surveys of employers who might have overstated the benefits.
Labour will change the law to restore fairness, so employers will be required to give decent feedback to justify any dismissal.
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