Led by a former Prime Minister, the group will make recommendations on the design of a sector-level bargaining system
Led by former Prime Minister Jim Bolger, a team of experts will make recommendations on the design of a Fair Pay Agreement (FPA) system.
The aim is to “prevent a race to the bottom”, where some employers are undercut by others who reduce costs through low wages and poor conditions of employment, according to the Government.
Workplace Relations and Safety Minister Iain Lees-Galloway said that through the team, the Government intends to allow employers and workers to create FPAs that set minimum employment terms and conditions for all workers in the industry or occupation covered by the agreement.
“Fair Pay Agreements will help lift wages and conditions and ensure good employers are not disadvantaged by paying reasonable, industry-standard wages,” said Lees-Galloway.
“The best way to create a high-wage economy is through productivity growth, and we must ensure that workers and businesses benefit from economic growth.”
Lees-Galloway added that while wages have generally grown in the top-two and bottom-two deciles, wages for middle New Zealand have not kept up and they "feel squeezed by rising costs, particularly in housing".
“We can and must do better for middle New Zealanders. Fair Pay Agreements will establish a framework for employers and employees to work together constructively to lift wages and productivity,” he said.
“Mr Bolger will lead the team of ten to develop recommendations on the design of a Fair Pay Agreement system, which is due to report back by the end of the year, and we will work closely with businesses, organisations and workers to develop a new and enduring framework that is good for employers and workers.”
Council of Trade Unions president Richard Wagstaff said “generations of New Zealanders had a deal where full time labour meant the security of a home, and being able to feed the kids and hold their heads up high”.
“With today’s announcement we can start to rebuild that dignity and recover a decent quality of life for working Kiwis.”
Wagstaff added that the protective benefits of FPAs will extend to businesses as well.
“Genuine Kiwi businesses want to do right by their staff, but have been squeezed by undercutting from unethical operators,” he said.
“The logic of the current market-driven system pushes down wages by allowing the worst operators to set conditions for the rest of us.”
Members of the Fair Pay Agreement team include:
Rt Hon Jim Bolger – 35th Prime Minister of New Zealand, former Minister of Labour
Dr Stephen Blumenfeld – Director, Centre for Labour, Employment and Work at Victoria University
Steph Dyhrberg – Partner, Dyhrberg Drayton Employment Law
Anthony Hargood – Chief Executive, Wairarapa-Bush Rugby Union
Kirk Hope – Chief Executive, BusinessNZ
Vicki Lee – Chief Executive, Hospitality NZ
Caroline Mareko – Senior Manager, Communities and Participation, He Whānau Manaaki o Tararua Free Kindergarten Association
John Ryall – Assistant National Secretary, E tū
Dr Isabelle Sin – Fellow, Motu Economic and Public Policy Research, and Adjunct Senior Lecturer at Victoria University of Wellington
Richard Wagstaff – President, New Zealand Council of Trade Unions
