MBIE Still Fighting To Cut Flexible Work As Third Mediation Looms And Employment Relations Authority Hearing Set – PSA
As petrol prices bite and household budgets tighten, the battle over flexible work is becoming more than an internal workplace dispute. The PSA says MBIE is trying to strip back hard-won working-from-home rights, even though flexible-by-default protections are embedded in its collective agreement.
MBIE’s controversial and unlawful crackdown on flexible work arrangements protected under its collective agreement with workers will be subject to a third round of mediation with the PSA in Wellington today.
If mediation fails, a three-day hearing before the Employment Relations Authority will follow on 31 March to 2 April.
Why the PSA says MBIE is breaching its collective agreement
“Flexible work is more important than ever with household budgets hit by rising petrol prices – MBIE needs to stop defending its new Flexible Work Policy which is out of step with modern workplaces,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“MBIE cannot simply tear up collective agreements that provide for flexible work.
“The policy rides roughshod over its obligations under the collective agreement which binds MBIE to support flexible work. If mediation fails, we will be seeking a determination from the ERA that MBIE is violating the ‘flexible by default’ approach which forms part of its collective agreement with members.
‘Flexible by default’ means employees at MBIE have a right to flexible work arrangements which suit their individual circumstances unless there is a good business reason not to.
“MBIE should be leading the way on flexible work, as should all public sector employers where it’s practical to do so, not spending public money fighting in the ERA to take it away. ACC heard its workers and backed down. It’s time for MBIE to do the same.”
MBIE introduced its new Flexible Work Policy last year to align with the Government’s directive to restrict working from home across the public service. The policy requires all existing flexible work arrangements to be renegotiated and reviewed every six months with the explicit aim of reducing days worked from home.
“We urge MBIE and all government agencies to take heed of the times. With petrol prices rising, working from home is one of the most practical ways public servants can ease the pressure on their household budgets. Every day working from home is a real saving on fuel and commuting costs,” Fitzsimons said.
The PSA is also challenging the Government’s broader flexible work restrictions at the ERA through separate proceedings against Te Kawa Mataaho Public Service Commission.
“Public sector employers need to see flexible work as a win-win, and the way of modern workplaces the world over,” Fitzsimons said.
Background: The PSA filed ERA proceedings against MBIE in July 2025 after a first mediation failed. A second ERA-ordered mediation was held in December 2025. A third mediation is scheduled for 20 March 2026. If unresolved, a three-day ERA hearing follows on 31 March to 2 April 2026 in Wellington.
As the cost of living rises and public servants face more pressure on household budgets, this dispute is shaping into a wider test of whether flexible work remains a genuine workplace right or something ministries can quietly claw back under political pressure.
