‘Policy Making Madness’: New Zealand Pushes for Collective Bargaining in Radical Labour Law Reform
The New Zealand government on May 7 unveiled a new collective bargaining system marking the biggest reform of the country’s employment laws since the early 1990s. The changes have been met with fierce opposition from the business community, who say the process would be compulsory and against international law.
The plan, called the Fair Pay Agreement (FPA), is built upon Australia’s modern award system introduced under former Labor Prime Minister Kevin Rudd in 2009 and aims to raise wages by allowing unions to interact with employers to set minimum wage standards across entire industries.
THE DETAIL/RNZ
One of the effects is sending investors out of the market which reduces supply and “actually makes the problem worse rather than makes it better,” Brad Olsen tells Emile Donovan in today’s Detail episode.
EXPLAINER: If you are a tenant, or looking for a rental, the idea of a Government-enforced cap on how much your rent can rise probably sounds like a great idea. If you’re a landlord, it might well sound like the worst idea you have ever heard. But some landlords, who have just been hit by that suite of changes, designed to help first home buyers, say they will be forced out of the market if rents can t change. And many economists say that most forms of rent control are actually self-defeating.
Source: Council of Trade Unions â CTU
The Council of Trade Unions says the future for working New Zealanders looks much brighter thanks to todayâs announcement that Fair Pay Agreements are much closer to becoming a reality. The announcement was made by the Minister of Workplace Relations and Safety Hon. Michael Wood.
âFair Pay Agreements will provide a framework for fairness, they will allow for an industry-wide set of minimum standards for employment terms and conditions. These standards will include minimum pay rates, penal rates, and other conditions. Any sector or industry which has a Fair Pay Agreement will now have a better base of employment conditions, and all employees will now require employment agreements that recognise these standards as a minimum. We expect employers and employees to negotiate terms and conditions that better what is included in a Fair Pay Agreement if possible,â CTU President Richard Wagstaff said.
Michael Wood says fair pay agreements are about making sure low-paid workers get a fair go.
The government will introduce fair pay legislation this year and expects it to become law in 2022.
Under the legislation, the Council of Trade Unions will be the peak body for workers and Business New Zealand will play the same role for employers. Only unions will be able to initiate fair pay negotiations but, to do so, will need either 10% of a workforce or 1000 workers to agree or pass a public interest test.
Fair pay agreements will cover all workers in a sector or occupation subject to the agreement, whether they are union members or not. Non-union members
Friday, 7 May 2021, 12:53 pm
The Council of Trade Unions says the future for working
New Zealanders looks much brighter thanks to today’s
announcement that Fair Pay Agreements are much closer to
becoming a reality. The announcement was made by the
Minister of Workplace Relations and Safety Hon. Michael
Wood. Fair Pay Agreements will provide a framework
for fairness, they will allow for an industry-wide set of
minimum standards for employment terms and conditions. These
standards will include minimum pay rates, penal rates, and
other conditions. Any sector or industry which has a Fair
Pay Agreement will now have a better base of employment