Research methodology
New Zealand Context
NACEW commissioned research into the New Zealand context in 2005 to describe the process of government contracting and any impacts this may have on the precarious nature of the work or access to pay and employment equity outcomes for the provider's employees in these sectors. The research consisted of:
- A brief examination of literature provided by Department of Labour on the impact of purchasing frameworks on employment outcomes;
- An examination of government procurement policy and practice documents; and
- Interviews with key stakeholders: policy organisations; purchasing agencies; national provider organisations and the SFWU.
In particular, this work considered:
- the quality of employment for women in highly casualised and low paid work in the homecare, residential and cleaning sectors in New Zealand;
- the linkages between the conditions that are prevalent in precarious employment and government contracting and funding processes
- key policy issues affecting workers, purchasing and the delivery of appropriate contracting services in the homecare, residential care and cleaning industries
- appropriate measures aimed at addressing funding levels and contract prices to improve wage rates and job security of those actually providing the services.
Findings from this investigation led to the conclusion that there is inadequate consideration of pay and employment equity and precarious work outcomes in government contracting policy and practices. All funders are aware that as the main, only or significant funders of the residential, home based support and cleaning sectors that their funding decisions, especially around prices, do have a direct impact on business profits and pay rates.
Government expectations with respect to government contracting are well documented and each agency is expected to develop their own procurement policies, in line with those core requirements. Consideration of the employment practices of provider organisations is referred to in one of the key government guidelines but this is neither actively promoted nor monitored.
There is little disagreement amongst government agencies and providers about the negative impact of low paid and precarious work in the homecare, residential and cleaning sectors. The level and nature of government funding and contracting processes is acknowledged, however, as one of the key drivers of the precarious nature of the working conditions that can be found in these sectors.
Government procurement advice to funders suggests that the contracts should be let to encourage or support other government objectives such as environmental sustainability, support of SMEs, or business innovation. These precedents for "intervention" also suggest that more could be done to positively influence the employment practices of the provider organisations.
Examination of international practice
An international literature review was undertaken to examine the experience of governments' positive intervention to improve pay and employment equity and quality work outcomes for people in precarious work and to assess the potential applicability to the New Zealand context. The countries and regions considered (on the basis of available literature) were the United States of America; Canada; England; Wales; Scotland; Northern Ireland; Ireland; Europe; Scandinavia and Australia.
The initiatives that may impact on positive outcomes that were considered included:
- Minimum wage laws
- Prevailing wage law
- Living wage ordinances
- Contract compliance requirements
- Industrial awards
- Transfer of Undertakings (protection of employment) Regulations (TUPE)
- Pension/superannuation protection
- Positive duties
- European Union directives
- Equality impact assessments
- Codes of practices
- International Labour Organisation conventions
- Decent work programmes.
Findings from the literature review confirmed that the recognised outcomes from precarious work, in particular those concerning inadequate income and a lack of security of working terms and conditions, has been an issue of policy around the world. Prompted by concerns for quality tenders, public money funding poverty level wages, sustainable quality services and social equity, the solutions adopted have generally focussed on setting wage floors and requiring quality labour practices to be part of the procurement conditions.
