Prime Minister John Key is refusing to rule out labour market reform, just three months out from the general election.

Thousands of workers from Kaitaia to Bluff will stop work for two hours on Wednesday to attend union meetings protesting against the Government's employment laws, says the Council of Trade Unions (CTU).

The CTU has been vocal in its opposition to new employment laws, which include extending the 90-day probation period to all businesses, requiring greater justification for sick days and making changes to union access to workplaces.

The Employment Relations Amendment Bill passed its first reading in Parliament a couple of months ago.

The Council of Trade Unions (CTU) has hit the government where it hurts – trade negotiations.

After delivering a letter to Prime Minister John Key accusing him of breaking his word over labour law reforms, the CTU has withdrawn its co-operation with government on trade agreement issues.

Richard Trumka, president of central USA union AFL-CIO, was scheduled to visit NZ early next year on the government’s invitation but, on the request on the CTU, the visit is no longer likely to go ahead.

The controversial 90-day probation law has passed the 90-day milestone but it is too early to judge what impact it will have on small businesses and their employees.

The law, which allows new employees at businesses with fewer than 20 staff to agree to a 90-day trial period, passed in December under urgency and came into force on March 1 this year.

But while it attracted plenty of protest initially, the probation law seems to have been largely forgotten about as other issues have dominated the headlines.

The government is too focused on the threat of a ratings downgrade and needs to use the budget to invest in job creation and skills development, according to the Council of Trade Unions.

Thursday’s budget is shaping up as the most important since 1991 and CTU secretary Peter Conway says unemployment, not government debt, should be its main focus.

“In February the concern about the recession was its impact on jobs,” he says. “Now the focus by the government seems to be primarily on the credit rating agencies.”

The EMA campaign asking small businesses owners to email in their 90-day probation law success stories has stirred up a hornet’s nest of left-wing fury over the law.

Following the introduction of the new law in February, employers of fewer than 20 people can now include in employment contracts a 90-day probation period, during which they can dismiss new workers without facing personal grievance action.