BusinessNZ to Govt: time to reconsider Fair Pay Agreements

8 Jul 2021

Newly released documents show the Government’s plan for Fair Pay Agreements did not have the support of MBIE, and Fair Pay Agreements should now be reconsidered, says BusinessNZ.

Chief Executive Kirk Hope says Fair Pay Agreements would cause massive industrial and commercial disruption, and there is no popular support for them outside of the union movement.

“We have now learned that MBIE - the Government agency that would implement Fair Pay Agreements - also recommended against the policy.

“It is not surprising that there is no support for this policy across the vast majority of New Zealanders,” Mr Hope said. “Compulsory sector-wide collective agreements would do nothing except introduce unwieldy regulation and destroy economic value.”

MBIE officials said the plan had significant risks and could breach New Zealand’s  international labour obligations.

Mr Hope said it was also alarming to learn that the Government proposed introducing at least 8 Fair Pay Agreements per year, while claiming that there would be no more than two or three per year.

“Fair Pay Agreements would be unwieldy, costly, and place stifling restrictions on NZ businesses and the NZ economy.  It’s time for the plan to be scrapped.”