Timing of fair pay Bill slammed

Business South says the timing of the Government’s introduction of the Fair Pay Agreements (FPAs) Bill is "dreadful" and "unworkable".

Earlier this week, Workplace Relations and Safety Minister Michael Wood introduced the FPA Bill to Parliament, which was part of Labour’s 2020 election commitment.

Business NZ has refused to engage with the Government about the law, describing the scheme as "unacceptable".

Meanwhile, the Council of Trade Unions have welcomed it saying it would be "crucial for boosting Kiwis wages".

Under the Bill, employees would be able to force their employers to negotiate working conditions and pay if at least 10% of their workforce or 1000 staff agreed to it.

It also allowed for a "public interest test'’, meaning the threshold did not need to be met if there were systematic employment issues in that sector.

Business South chief executive Mike Collins said given the amount of pressure businesses were under at the moment, FPAs would only add to that.

"We’ve got increasing inflation, increasing labour shortages . . . the timing is absolutely dreadful," he said.

Businesses were concerned that their right to be flexible was being taken away by the agreement, Mr Collins said.

It would make it compulsory for businesses to take part in collective bargaining, which would not work and create "great disruption".

Instead of one agreement, the Government should look at having sector-based standards.

"You can’t just have one-size-fits-all . . . it just does not work," Mr Collins said.

Mr Wood said FPAs had long been one part of the wider work programme focused on lifting the wages of those on low to medium incomes.

Better wages for employees were even more essential now as people began to feel the global economic pressures caused by the war in Ukraine.

The agreements would improve wages and conditions for employees, encourage businesses to invest in training, and "level the playing field" so employers did not get undercut and disadvantaged, Mr Wood said.

The Bill would go through a full select committee process and was expected to pass all stages this year.

riley.kennedy@odt.co.nz