BusinessNZ has run out patience with the government's plans to implement national compulsory fair pay agreements (FPAs) and will fight to block the scheme.
Business NZ CEO Kirk Hope Photo:
"The government has taken its phone off the hook and is ignoring widespread opposition from New Zealand business owners and employees to its unlawful compulsory national pay agreements scheme, known as FPAs," the organisation said in a statement.
Chief executive Kirk Hope said the organisation wrote to Workplace Relations Minister Michael Wood in December to express its deep concerns about "the out-of-touch and out-of-date scheme", but was yet to receive a reply.
In addition, he said, the government wrote BusinessNZ into the proposed scheme without its agreement.
"Kiwis don't believe there is a need for the Labour government's so-called fair pay agreements and don't want their right to flexibility in the workplace to be taken away," Hope said.
"However, the lack of response from the government and comments they've made elsewhere make it clear they're determined to plough on with FPAs, despite them being fundamentally flawed and out of touch with modern ways of working."
Council of Trade Unions president Richard Wagstaff said fair trade agreements would offer the flexibility businesses seek, providing they did not undercut fair pay minimium standards.
"FPAs will improve the lives of many New Zealanders and their families by lifting the wages of some of our lowest paid people, for example, in supermarkets, cleaners, security and early childhood centres," Wagstaff said.
"Workers across the country right now are gearing up to demonstrate the strong support for FPAs in Aotearoa."
Hope said BusinessNZ had taken its fight to the International Labour Organization (ILO), as compulsory FPAs were unlawful under current domestic and international employment laws, and not in the best interests of the workforce.
He expected the ILO's tribunal to hear its case later this year.
"A better approach would be to introduce a limited set of sector-based minimum standards where a labour market problem has been established," Hope said.
"We will continue to fight on behalf of our members until the government does what its own officials have recommended - scrap FPAs and focus on improving and strengthening the current system."
He said FPAs could not have come at a worse time, as businesses struggle with inflation, labour shortages, fast rising costs, supply chain issues and the Omicron response.
"Omicron and the way in which New Zealanders are now learning to live with the virus means that employers and employees are now having to work together to ensure flexible working practices while meeting Covid-19 isolation requirements," Hope said.
"FPAs would largely take away the ability to do this."
Wagstaff said "good" employers would have no problem working with compulsory FPAs.
"Good employers are not concerned about FPAs, because they already treat workers fairly," Wagstaff said.
"FPAs will in fact help them because it stops exploitative employers in the same industry undercutting them."
In a statement, Minister Wood said the agreements were about making sure low-paid workers like bus drivers, supermarket workers and cleaners got a fair deal.
"For thirty years, these workers have been left out in the cold in our labour market, and we clearly and transparently campaigned on Fair Pay Agreements to change this," he said.
He said he and agencies had sought to engage with Business NZ and designed the policy to ensure the overall framework was coherent and workable.
"I have met with Business NZ since receiving their letter and agencies continue to engage with key stakeholders ... The agreements are intended to set minimum terms and conditions for all employees in a sector or industry. Given the benefits they will provide, I believe strongly that it would not be right to limit which sectors or employees should be eligible."
"We are finalising the final design of the system, with enabling legislation due to be introduced to the house in the coming weeks."
He said the specific part of the system Business NZ said they would not engage with was a small aspect, and where employer groups did not form to bargain for their sector the Employment Relations Authority could step in if Business NZ was unwilling.
