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Hon Brooke van Velden
Minister for Workplace Relations and Safety
Legislation to repeal Fair Pay Agreements passed its third reading in Parliament today, achieving an early milestone in the Government’s 100-day plan.
We have moved quickly, as the public expects us to do, to implement one of our 100-day priorities and remove this blunt tool before any Fair Pay Agreements were finalised.
As a government we are focussed on boosting productivity, becoming more competitive, and creating a healthy economy that will benefit all New Zealanders. This policy fulfils a commitment made as part of the National-ACT coalition agreement.
Fair Pay Agreements were a one-size-fits-all model that could be initiated by a union and small number of employees, yet they would have applied to every employee and employer within coverage.
If finalised, these agreements would have made it tougher for businesses who are already struggling in a cost of living crisis by piling on rigid and costly legislation.
These costs would have been passed on to consumers and employees as businesses respond by hiring fewer people, reducing hours of work or increasing the price of goods and services just to stay afloat.
To lift productivity and drive economic growth we need agile and flexible workplaces, where businesses have the confidence to innovate and grow, and employees have the freedom to agree on terms that work for them and their unique situation.
When businesses thrive, our economy thrives. And it’s only with a strong economy that we can lift wages, create opportunities, and help Kiwis get ahead.
Repealing the legislation will have no impact on the current employment terms for workers because no Fair Pay Agreements have been finalised.
This is the final step before the Bill receives Royal assent. By achieving this milestone we’re in the final stages of bringing about real change for businesses that help New Zealanders get ahead.”
- The repeal will take effect once the Bill receives Royal assent.
- More information on options for employers and employers can be found on the Employment NZ website Collective agreements » Employment New Zealand
