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Will ‘Fair Pay’ agreements be compulsory?


On yesterday’s Morning Report, Kirk Hope CEO Business NZ spoke to RNZ’s Gyles Beckford. Adam’s earlier post refers on 2019 Year of Delivery.

Most of the Jim Bolger led working group apparently favoured compulsion.

The working group had a membership of 10, with a small preponderance of academics and union people. The terms of reference presumed that FPAs are a good and necessary thing.

It is worth noting from the press release, that the terms of reference were couched, Minister Iain Lees-Galloway, so as to lead to this outcome, viz:

‘ That’s why I directed the Fair Pay Agreement Working Group to recommend the scope and design of a system of bargaining that sets minimum terms and conditions of employment across industries or occupations’

Let’s not forget that in an interview on Q+A last year, this Minister appeared quite sanguine about businesses going under as result of proposed changes to industrial relations policies. He seems to think that by legislation and minimum wade hikes, he will increase worker productivity. In fact,this may happen, but employers will automate more, reduce employees numbers. Not necessarily the outcome he might want.

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