[New Zealand] Radical employment law overhaul includes ‘Fair Pay Agreement’ plan

New Zealand’s government has announced a radical overhaul of the country’s labour laws, with a policy package to boost the institutional power of unions and put centralised wage bargaining back at the heart of industrial relations law, Stuff reports.

The new Fair Pay Agreement system was announced in Auckland on May 7. It has been designed to put a floor under wages by allowing unions to negotiate on an industry-wide basis; if 10 per cent of a workforce, or 1000 workers agree, a new Fair Pay Agreement can be enacted. (Link via original reporting)

The relevant union will then reportedly be empowered to negotiate directly with an employer group covering the sector that will be compelled to negotiate to create the agreement. Any resulting agreement will set minimum ordinary time wages and conditions, overtime and penalty rates across the country. 

Regional variations to account for the cost of living will be able to be built into the system along with some limited exemptions and strikes will be prohibited during negotiations.

The agreements will cover all workers - union and non-union - but as part of the deal, unions can apply for union members to receive extra wages up to the value of their union fees.

The government argues that such a scheme is necessary to stop a “cowboy effect” where employers that treat employees badly undercut their competitors on price and force wages down. It is also concerned that wage increases have not kept pace with increases in productivity in some sectors.

Michael Wood - Minister for Workplace Relations and Safety - said in a statement that both the New Zealand Council of Trade Unions and BusinessNZ will receive $250,000 for the next three years to “support their role in coordinating Fair Pay Agreements, identifying bargaining parties and helping to raise awareness about Fair Pay Agreements and the bargaining process.” Sectoral unions can also receive $50,000 to help with the costs of bargaining.

“Fair Pay Agreements will improve wages and conditions for employees, encourage businesses to invest in training, as well as level the playing field so that good employers don’t get undercut and disadvantaged,” Mr Wood said.

“Fair Pay Agreements will help good employers by stopping the race to the bottom we’ve seen in various industries and encourage competition that isn’t based on low wages but on better products, services, and innovation.

Source: Stuff

(Quotes via original reporting)

New Zealand’s government has announced a radical overhaul of the country’s labour laws, with a policy package to boost the institutional power of unions and put centralised wage bargaining back at the heart of industrial relations law, Stuff reports.

The new Fair Pay Agreement system was announced in Auckland on May 7. It has been designed to put a floor under wages by allowing unions to negotiate on an industry-wide basis; if 10 per cent of a workforce, or 1000 workers agree, a new Fair Pay Agreement can be enacted. (Link via original reporting)

The relevant union will then reportedly be empowered to negotiate directly with an employer group covering the sector that will be compelled to negotiate to create the agreement. Any resulting agreement will set minimum ordinary time wages and conditions, overtime and penalty rates across the country. 

Regional variations to account for the cost of living will be able to be built into the system along with some limited exemptions and strikes will be prohibited during negotiations.

The agreements will cover all workers - union and non-union - but as part of the deal, unions can apply for union members to receive extra wages up to the value of their union fees.

The government argues that such a scheme is necessary to stop a “cowboy effect” where employers that treat employees badly undercut their competitors on price and force wages down. It is also concerned that wage increases have not kept pace with increases in productivity in some sectors.

Michael Wood - Minister for Workplace Relations and Safety - said in a statement that both the New Zealand Council of Trade Unions and BusinessNZ will receive $250,000 for the next three years to “support their role in coordinating Fair Pay Agreements, identifying bargaining parties and helping to raise awareness about Fair Pay Agreements and the bargaining process.” Sectoral unions can also receive $50,000 to help with the costs of bargaining.

“Fair Pay Agreements will improve wages and conditions for employees, encourage businesses to invest in training, as well as level the playing field so that good employers don’t get undercut and disadvantaged,” Mr Wood said.

“Fair Pay Agreements will help good employers by stopping the race to the bottom we’ve seen in various industries and encourage competition that isn’t based on low wages but on better products, services, and innovation.

Source: Stuff

(Quotes via original reporting)