Given the high-profile nurses' and teachers' strikes recently, Ms Ardern gave the business community assurances the design of new fair pay agreements did not include strike action, and only up to two agreements would be struck during this term of the Government.
Industrial relations reform appears to be high on the agenda of business concerns.
Speaking at a Westpac breakfast event in Auckland yesterday, Ms Ardern said she wants the advisory council, chaired by Air New Zealand chief executive Christopher Luxon, to build closer relationships between government and business.
''I want the council to report to me on the issues and opportunities they see and identify emerging challenges like skills, training and migration and the challenge of scaling New Zealand businesses up and growing our export led wealth,'' Ms Ardern said.
Otago Southland Employers' Association chief executive Virginia Nicholls said that there was ''general policy uncertainty'' facing businesses, with so many areas now being looked at in working groups.
''Uncertainty is the key problem right now,'' she said.
She said establishment of the new business advisory council could be another source of feedback from business, which may help resolve areas of uncertainty.
''It's encouraging that the Government is signalling that it will listen to business,'' she said.
Mrs Nicholls said changes to the Overseas Investment Act could make it harder to obtain foreign investment; another key issue for some businesses.
Adding to business uncertainty was not knowing what the tax landscape was going to be, following tax working group deliberations, and if there might be a capital gains tax introduced.
The Government has more than 100 working parties or inquiries under way at present.
Adding to the ''jitters'' were decisions such as the ban on new oil and gas exploration, she said.
Of mounting concern to the business community are proposed changes to industrial law, including amendments to the Employment Relations Act and the creation of fair pay agreements. The latter is still in its development stages.
The proposed agreements would set minimum terms and conditions for all workers in an entire industry or occupation. The first report on the proposals is due in November.
Otago Chamber of Commerce chief executive Dougal McGowan also hammered home the ''uncertainty'' faced by businesses, given the many working groups.
''There could be significant changes under tax reform, or employment relations, which would in turn then require significant human resources support for businesses,'' he said.
While finance minister Grant Robertson and deputy prime minister Winston Peters had visited Dunedin, Mr McGowan said Ms Ardern had been invited several time since before the election, but had not yet visited.
''Each region is different ... we'd like [Ms] Ardern to hear what our region and businesses are feeling,'' he said.
Mr McGowan described the new business advisory council as ''yet another'' working group, and believed there were already the sources and information streams in place to be drawn on.
Uncertainty ''abounded'' with the new advisory council, in its unknown details, terms of reference or what shape recommendations may take, he said.
Mrs Nicholls said the proposed employment relations changes have not been explained or discussed in any detail, making businesses ''nervous''.
Ms Ardern said the fair pay agreements, which are common in Australia, are intended as another tool in the bargaining toolkit, in areas where there were entrenched low wages and low wage growth.
They were not to ''fundamentally disrupt'' the employment relations landscape, nor would they be accompanied by the ability to take strike action, but there was a ''vacuum'', in the slow development of them.
''That's why I am confirming today that there will be no more than one or two fair pay agreements concluded during this term,'' Ms Ardern said.
BusinessNZ chief executive Kirk Hope welcomed establishment of the Prime Minister's Business Advisory Council, also highlighting the policy ''uncertainty'' faced by businesses.
''Businesses like certainty.
'' It gives them the courage and confidence to invest, hire, and to help create a successful New Zealand,'' Mr Hope said.
Business had been urging the Government to take heed of its concerns about the lack of clarity around policy and reform, particularly in the area of employment relations, he said.
''Today's announcement is a positive step in signalling the Government's commitment to do so,'' Mr Hope said.
Opposition leader Simon Bridges labelled the new business advisory council ''yet another working group'' to try to shore up plummeting business confidence.
''The Prime Minister talks about wanting to lift wages and grow a sustainable economy - everyone wants that.
''But the way to do it is to take real steps to support businesses, not driving uncertainty through endless working groups and bad policy,'' he said.
Act NZ leader David Seymour said creation of the advisory council would create a ''showdown'' between the Government agenda and business community's views.
''If she is prepared to listen to her Business Advisory Council, which of her Government's vandalous policies will she drop?'' Mr Seymour asked.
