Wood reiterates commitment to FPAs despite business pushback

The minister also underscored the government's plans for workers

Wood reiterates commitment to FPAs despite business pushback

Workplace Relations and Safety Minister Michael Wood doubled down on the government's proposed Fair Pay Agreements on International Workers' Day, despite the pushback the proposal received from businesses. In a statement, Wood revealed that their office received "over a thousand submissions" supporting the controversial Fair Pay Agreements on International Workers' Day.

He stressed this is a "clear message" that essential workers support "fair, good faith bargaining" with their employers through Fair Pay Agreements.

"At the heart of the Governments economic recovery plan is people. When we invest in New Zealanders, we know they have greater opportunities to prosper, provide for their families, and contribute to our nation’s success," said the minister in a statement.

"That's why we are following through on our commitment to introduce Fair Pay Agreements, which level the playing field by enabling employers and unions to negotiate a basic floor under the pay and conditions of workers in a sector," he added.

"This will be critical in stopping the 'race to the bottom' we have seen in many sectors, which can see good employers undercut."

In addition, Wood also underscored the efforts of the government in supporting Kiwis through its cost of living package.

This covers "raising minimum wages and implementing a range of changes to reduce costs on people who need it most," he said, adding that it also includes the "recent 25 cents a litre reduction in fuel excise, the introduction of half price public transport for three months, and increases to the Family Tax Credit."

"COVID reminded us that some of our most essential workers like cleaners, drivers, and retail workers, are some of the most under-valued in the labour market. As we rebuild from COVID, it is the right time to tackle some of these long-term inequalities in our country," said Wood.

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Wood made the remarks on the Fair Pay Agreements amid strong resistance from employers and businesses across New Zealand.

BusinessNZ was among the industry groups strongly proposing the bill, which called the scheme "unacceptable."

"The scheme would make it compulsory for businesses to take part in collective bargaining, and compulsory for them to accept union demands or imposed arbitration," said BusinessNZ chief executive Kirk Hope in a previous statement.

"The FPA scheme would be deleterious to the economy, to people's prosperity, and to the human rights of those involved, and despite the mention of BusinessNZ in the Bill presented to Parliament today, I can confirm that BusinessNZ will definitely not be taking taxpayer money to support compulsory national pay schemes."