Will there be legal issues with PSA? Observation by the Owl

Extract from their PSA 2013 Annual Report

“In the face of ongoing job cuts, PSA membership remains stable and now stands at 58,427, slightly up on last year. The Executive Board has identified recruitment as a top priority that must be a feature of all the union’s activities in order to maintain and increase our influence.

A number of new recruitment strategies are being tested, including prize draws for members who recruit new members.

The PSA Benefits team, a company which specialises in union recruitment, has recruited 441 new members over the past year.”

With over $9M spent on PSA staff wages per annum why have they set up a recruitment team and more importantly a company?

Why aren’t the members told who holds the shares and why are they investing in a company who sole job is recruitment and yet they have X hundred of staff at the PSA. 

Observation by the Owl:

What are the rules of engagement here between the employer and this company?

Now that the PSA have abdicated recruitment they should no longer exist because the Owl assumes the company is being paid on performance and so the new members could potentially be “bullied” into signing up.

They are not a union so they can’t come on-site?

How do they recruit if the can’t go on-site?

What are all those staff at the PSA if they can’t even recruit?

Who are they recruiting?

What are their methods of recruitment?

What is their fee structure?

Answer to number 3:

I don’t know what they do but their leader sits and tweets all day. the only person who possibly tweets more than Brenda Pilott is the CTU’s Helen Kelly.

I believe the PSA are in serious trouble setting up a company and then not declaring their legal status.

From any Government perspective – this is completely fraught with danger.

If I was paying $9M in wages and was a member I would be asking some serious questions.

NB: All gleaned from the new Union Register on the Incorporated Societies website


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  • johnbronkhorst

    So the PSA is now a PRIVATE employer?
    What is their profit margin?
    How much TAX do they pay?
    ACC levies?
    Kiwi saver?
    Which union (if any) do their workers belong to?
    Who negotiated they collective agreement? (conflict of interest here, as they are the union negotiating their own employees agreement)
    Is it a limited liability Co.?
    What status under the companies act is it?
    Is their employment strategy legal and comply with “Equal opportunity employment regulations”?
    Does their employment strategy, mirror the govt.’s enforced Equal opportunities employment rules as negotiated by them (The PSA)?
    Is their collective agreement the same as the very “members” (of the PSA) who are employing them? …I seriously doubt it as most PSA members are NOT on performance based contracts.

  • Blue Tim

    Their recruitment people are probably contractors. Gets around ACC etc

    • Patrick

      Wouldn’t that be ironic – a Union employing contractors to recruit new Union members. I thought Unions had a pathological hatred of contractors – because they undermine the collective agreements Unions negotiate.

      • johnbronkhorst

        Had my fingers poises above the keyboard to say exactly that!!!

  • James Growley

    Perhaps, they want to hide all their dodgy dealings in a company as those accounts will not be available for public scrutiny.