The Fair Pay Agreements Bill passed its third reading in parliament on Wednesday and comes into effect on 1 December 2022.
Essentially the new law provides a framework for collective bargaining for Fair Pay Agreements across entire industries or occupations, rather than just between unions and specific employers.
The new law means entire industries can negotiate Fair Pay Agreements for workers within a sector, for example – allowances, overtime rates, increase pay rates, etc to be universal terms that must apply across entire workforces like hospitality, security guards, bus drivers, cleaners, etc once a Fair Pay Agreement is established.
It only takes 1000 workers, or 10 per cent of a workforce to trigger a negotiation process with unions for a Fair Pay Agreement under the new regime. Once a Fair Pay Agreement is in place, then it will set minimum terms and conditions for all the workers within its coverage.
Workplace Relations and Safety Minister, Michael Woodhouse says the legislation will lift incomes and working conditions for Kiwis and in particular will result in improvements in outcomes for vulnerable employees.
The National Party vow to repeal if they are elected next year.