'It was always ridiculous for BusinessNZ to claim that FPAs were comparable to countries where child slavery occurs'
The International Labour Organisation (ILO) has given its support to New Zealand's proposed Fair Pay Agreements (FPA), after BusinessNZ raised the matter to the agency claiming it "contravenes ILO Convention 98" or the Right to Organise and Collective Bargaining Convention.
The ILO's Committee on the Application of Standards has not found the FPAs of breaching international labour laws. Instead, it urged the government to "continue to consult social partners on the proposed legislation," according to Workplace Relations and Safety Minister Michael Wood.
"The BusinessNZ complaint to the ILO has completely failed. Their request for the ILO to condemn FPAs has been rejected and there was little international support for their hyperbolic claims," said Wood in a statement.
According to Wood, the result was "no surprise" given that other countries also have their sector-based bargaining systems.
"It was always ridiculous for BusinessNZ to claim that FPAs were comparable to countries where murder, kidnapping, and child slavery occur. Hyperbole usually occurs in the absence of sound arguments," said Wood.
The minister also condemned BusinessNZ for taking money from the largest and wealthiest NZ corporates to "run a misinformation campaign against fair pay." BusinessNZ was previously slammed by the government altering a document from the ILO to say that the government breached international labour law.
"A big reform like this is open for good public debate, but the ongoing misinformation and hyperbole only undermines good dialogue," said Wood in his latest statement. "I ask Business NZ and the members they represent to reconsider the current discredited approach and work more constructively with us."
Unions also welcomed the ILO's decision to back the FPAs, with Public Service Association national secretary Kerry Davies saying that they hope it will make BusinessNZ work on the proposal constructively.
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"Fair Pay Agreements will provide a foundation for workers in many sectors, leading to healthier communities and the ability for employers to attract and retain the workforce they need," said Davies. "It's a win-win situation. We all want our country to be a desirable place to live, work and do business. Fair Pay Agreements are a sensible step to make that a reality for all of us."
Read more: BusinessNZ turns down government offer on FPAs
BusinessNZ responds
In its statement, however, BusinessNZ chief executive Kirk Hope said they are pleased with the decision of the ILO, adding the conclusion recognises that the government has an opportunity to ensure that the bill complies with international law.
"That has always been our goal," said Hope in a statement. "This decision validates our legitimate claim that compelling people to bargain is not consistent with the NZ government’s obligations and commitments and we look forward to ensuring that NZ can meet those obligations."
The FPA Bill is currently before the Education and Workforce select committee, and Wood said the government "remains committed to good FPA legislation that stops the race to the bottom by providing basic, negotiated minimum standards for kiwi workers."