STUFF
The Labour government is looking to help employees like cleaners and support workers negotiate better pay with their employers. The new system for collective bargaining is based on Australia’s modern awards system and aims to improve pay and conditions for workers, especially those in low-wage sectors such as cleaning and security. But some employers and the political-right argue it will lower employment by forcing them into sector-wide arrangements. Here’s an explainer on what exactly Fair Pay Agreements (FPAs) are. What on earth is an FPA? An FPA is a legally-binding agreement that sets out minimum pay and conditions between employers and employees across an entire sector.
The Government is drafting legislation, which will be introduced later this year, and is expected to pass in 2022.
When it comes into force, any union will be able to initiate the FPA process as long as they can demonstrate support from either 10 percent or 1000 employees in the proposed industry or occupation.
FPAs can also be initiated via a public interest test in an industry or occupation where employment issues exist, such as low pay or limited bargaining power.
All employees will be covered by FPAs, even if they aren t already part of a union.
Both employees and employers covered by a proposed FPA will be able to participate in the process. In the case of employers, there will be a small weighting towards small businesses to ensure they have appropriate voice in the process.
Friday, 7 May 2021, 12:24 pm
“Compulsory unionism is undemocratic, will be a
wrecking ball on the economy, and doesn’t solve any
identified problem,” says ACT Leader David
Seymour.
“Today’s proposal is far more radical
than anything the Government has proposed before. It said it
would initially be ‘one or two industries.’ Today’s
proposal would allow any industry to have compulsory
unionism forced on it by one-in-ten workers from day
one.
“You cannot take a relic of the 1970s, dust it
off, and make it stick 50 years on. We will wipe it off the
statute books sooner or later, and the way this Government
Press Release – New Zealand Government
The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today.
Hon Michael Wood
Minister for Workplace Relations and Safety
The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today.
Fair Pay Agreements will set minimum standards for all employees and employers in an industry or occupation. The Government today released the details of the process unions and employers will go through to agree set minimum standards that are relevant to their sector. These proposals substantively implement the system proposed by the Rt Hon Jim Bolger led Working Group in 2019.
Hamish Rutherford: Pay freeze and fair pay agreements; this week was more about unions than workers
7 May, 2021 05:48 AM
4 minutes to read
The announcement of progress towards fair pay agreements by Workplace Relations Minister Michael Wood has been celebrated by unions. Photo / Alex Burton
The announcement of progress towards fair pay agreements by Workplace Relations Minister Michael Wood has been celebrated by unions. Photo / Alex Burton
OPINION: Fair pay agreements represent a major shift in New Zealand s industrial relations landscape but in terms of having an impact on workers conditions over the next few years, it was not even the biggest