Fair Pay Agreements - Consultation Process

18 October 2019

Some may say the consultation process is just a way of kicking this subject into touch.  Given the need to draft legislation and get NZ First on board, it’s very hard to see anything happening before the next Election in any event.  However, this will be one of the issues that will decide your vote in 2020.

But, what about the concept?  At a high level it is completely understandable that some low paid workers need support to lift their wages and conditions, but the problem is where it will end. 

The very idea that FPAs will set pay rates, overtime rates (probably back to double time and penal rates), redundancy compensation and may not recognise regional pay variances, is complete anathema to most employers. For most employers FPAs will inevitably result in more cost, higher risk and less flexibility than they have now. 

The Government is also considering more protection for dependant contractors, including whether to extend an FPA system to contractors.

If you think business confidence is low now, stand by.

It’s time to act and have your say.  If you don’t pay sufficient attention to this next phase, then expect it to happen without your input.

Soon we will bring you a full analysis of the proposals and alternatives.

Here you can access:

Consultation Summary Document

Full Discussion Paper