The PSA has filed legal action over what it says is a government ministry’s disregard of existing flexible work arrangements protected under the union’s collective agreement.

The Ministry for Business, Innovation and Employment 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) and the union has filed proceedings with the Employment Relations Authority (ERA).

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

The union originally raised objections to MBIE’s flexible work guidance last month, but attempts to resolve the dispute through mediation had failed, she said. 

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

The ministry could not just change existing agreements, which were protected under the collective agreement, she said. 

“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.”

The PSA hoped the authority 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 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.”

MBIE was notified yesterday that the union intend to file legal proceedings and was awaiting more information, she said.

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