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PSA National Secretary Fleur Fitzsimons.
Photo: RNZ / Samuel Rillstone

A union has filed legal action over what it says is the Ministry for Business, Innovation and Employment’s disregard of existing flexible work arrangements protected under the union’s collective agreement.

MBIE has recently introduced a new flexible work policy intended to align with the government’s directive to restrict flexible work arrangements for public service workers, including reducing days working from home. That directive is also subject to legal action by the Public Service Association (PSA).

The union has filed proceedings with the Employment Relations Authority (ERA).

“Cracking down on flexible work is the wrong approach from employers in 2025,” said PSA National Secretary Fleur Fitzsimons.

She said the PSA originally raised objections to MBIE’s flexible work guidance in June 2025, but attempts to resolve the dispute through mediation had failed.

“MBIE hasn’t been willing to backdown, leaving the PSA with no choice but to take this step to protect the rights of MBIE staff included in existing agreements,” she said.

She said MBIE could not just change existing agreements which were protected under the collective agreement.

“The collective agreement binds MBIE to supporting flexible work, so its new policy is simply unlawful. We are seeking a determination from the ERA that MBIE is violating the ‘flexible by default’ approach which forms part of its collective agreement with members,” she said.

The PSA was hoping the ERA would allow the MBIE case to be joined to the broader case against the Public Service Commission.

MBIE response

MBIE’s chief people officer Jennifer Nathan said consistent with the Public Service Commission’s Flexible Working (work from home) guidance for the public service received last year, MBIE had updated its flexible working policy in line with government expectations.

“Conversations with the Public Service Association (PSA) regarding the updated policy have been ongoing, including attending mediation with the PSA on 8 July. To date the parties have been unable to reach an agreement on resolving the PSA’s concerns.

“MBIE does not accept the PSA view that the review and refresh of the flexible working policy and procedures is a breach of the Collective Agreement.”

She said MBIE was notified yesterday that the PSA intend to file legal proceedings and was awaiting more information.

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