“What we need is a fairer system that does not hold the employer hostage during negotiations. If this system were to be adopted as it stands, conflicts between employers and employees would only increase. Read the full report here: www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/fair-pay-agreements/. BERL report commissioned by the Council of Trade Unions on sectoral bargaining “The Right Honourable Jim Bolger has presented me with detailed and valuable recommendations,” said Iain Lees-Galloway. “The coalition government is committed to improving the incomes and working conditions of New Zealanders, focusing first on the wages and conditions of those who earn the least.” Currently, employers who pay their employees a fair wage are underrated by competitors who pay less than a fair rate. It`s a classic race to the bottom that hurts people`s prospects and dampens many industries. “We don`t want a system that at least leads to higher wages and, in the worst case, prevents employers from hiring people. This would lead to downsizing that would lead to the closure of businesses. The government needs to continue discussions on this to create a fairer system that doesn`t dry up employers,” Woods concluded. The report of the Task Force on Fair Wage Agreements indicates that the introduction of a dialogue on collective bargaining will help build relationships between employers and employees. However, the employers` representatives who participated in the procedure stress that they cannot support the mandatory nature of the system for employers as it is currently designed. The government will take the time to review the recommendations of the Fair Compensation Agreement Task Force, which reported today,” said Industrial Relations and Safety Minister Iain Lees-Galloway. While this is not against people who earn a fair wage for work, Employsure, New Zealand`s largest industrial relations consultant, believes such a system will lead to unjustified conflicts between employers and their employees.
For more information on the Fair Wage Agreements Policy process, please email us at fairpayagreements@mbie.govt.nz. “If we want to build a modern and fairer New Zealand, we need a productive and sustainable economy that grows and works for all of us,” said Iain Lees-Galloway. “The model proposed by the working group would facilitate discussions not only on fair wage rates, but also on training pathways and ways to increase productivity and profits.” I would like to thank the Right Honourable Jim Bolger and his panel of experts. It is clear that they have developed their report with solid discussion, care and consideration. Read the report of the Fair Compensation Agreement Working Group [PDF, 10 MB] A resulting agreement would set out conditions that would apply to the relevant industry or profession nationally, including the normal minimum wage, overtime and penalty interest. “The report outlines the challenges of policy change related to equitable compensation. New Zealand is out of step with the OECD in terms of income inequality and productivity, as kiwis work longer but produce less per hour worked than most OECD countries. If passed, the process for negotiating an equitable compensation agreement can be adopted if an industry union has the approval of 1,000 workers or 10% of the workforce. There is also a trigger in the public interest that can spark conversations, but such a test has not yet been established. In the case of a permit, negotiations may be initiated between one or more unions and one or more employers. The Fair Compensation Agreement Working Group, chaired by former Premier Jim Bolger, was comprised of experts in business, collective bargaining and labour law, as well as worker and business representatives.
“The next phase of work will require detailed policy thinking and consultation, and we will take the time to get it right. In June 2018, a working group on fair remuneration agreements was set up to make recommendations on the design of a collective bargaining system at sectoral level. It was chaired by the Right Honourable Jim Bolger ONZ. “Our consultations show that the main concern of employers is that the mandatory nature of fair compensation agreements will lead to employers being effectively held hostage by trade unions. We are waiting for the government to pass the Fair Compensation Agreement Act at first reading in Parliament, which means it will be open for public debate. E tū members are invited to make written statements to Parliament explaining why fair wage agreements will be so important to us. The government has released a Cabinet document outlining the form of equitable compensation agreement legislation. This is a good start, but we need to keep up the pressure to ensure that we get both good legislation and strong public support. What we do know is that E tū supports and advocates for fair wage agreements as an important step towards the prosperity of workers and their communities. “The government will now take the time to consider its recommendations and comments.
Feedback from the consultation will inform the government`s decisions on a detailed equitable compensation agreement system. Fair wage agreements will be the best change for workers in decades. They will set minimum standards across all sectors so that we can achieve decent work – better wages, hours of work, health and safety, education and employee participation in decision-making. New Zealand`s new Fair Pay Agreement system will lead to higher costs for entrepreneurs and create more problems than it hopes to solve. Fair compensation agreements would set minimum standards to improve wages and working conditions in an industry or profession. E tū`s Playing Fair campaign aims to ensure that the government properly complies with its fair compensation agreement legislation and to help the public understand how important this change will be for Aotearoa workers. “The wording of the system essentially means that employers should accept the unions` demands during the bargaining process, regardless of the outcome,” Woods continued. .
According to the government, the system, which has yet to be regulated by law, was created to reduce wages by allowing unions to bargain at the industry or profession level. “For this reason, I have asked the Fair Compensation Agreement Task Force to recommend the scope and design of a bargaining system that sets out the minimum conditions of employment for all sectors or occupations.” Many of these systems depend on details, and the question always arises as to whether the process actually works in practice,” said Courtney Woods, Team Leader at Employsure Advice Services. “Just look at Australia`s industrial relations system, which divides professions into one of more than 120 modern awards. If mandatory nationwide systems are put in place, it can lead to greater ambiguity and confusion among employers. The Australian system is one of the most complicated in the world, and it`s something this country doesn`t need. These agreements will constitute a set of minimum occupational and sectoral employment standards such as wages, redundancies or overtime. They are agreed through negotiations between the employees concerned and the employers, and then become legal requirements in this sector. In October 2019, the government released a discussion paper seeking input on a number of options for designing a fair wage agreement system. The consultation closed on November 27, 2019.
The Task Force submitted its recommendations to the Minister of Industrial Relations and Safety in December 2018. The government is considering options for the detailed design of a fair wage agreement system. .