First step to flexible labour market

The Government is delivering on its commitment to repeal the Fair Pay Agreement legislation by Christmas 2023.

“We are moving quickly to remove this legislation before any fair pay agreements are finalised and the negative impacts are felt by the labour market,” says Minister van Velden. 

“Fair pay agreements undermine the flexible labour market which has been a pillar for New Zealand’s economic success for the past three decades. 

“They do not help employees. Instead, they make life harder for business so they’re more hesitant to employ people.

“National and ACT opposed this law when it was introduced and feel strongly that fair pay agreements would reduce flexibility, choice and agility in workplaces.

“To increase the wages of workers and ensure lower prices for consumers, there needs to be improved productivity and an environment where business can operate competitively. 

“To lift productivity and drive economic growth there needs to be agile and flexible workplaces where employers and employees can agree terms that suit their unique situation. 

“These agreements were a blunt tool that could be initiated by a union and a small number of employees, yet they applied to every employee and every employer within coverage. 

“There will be no impact on the current terms of employment for workers as no fair pay agreements have been finalised to date.

“We are focussed on boosting productivity, becoming more competitive, and creating a healthy economy. That’s why we’re preventing more bureaucracy from being piled onto businesses and backing them to grow."