Proposal for Fair Pay Agreements could put NZ under wrath of UN's International Labour Organisation & More News Here

New Zealand dangers being positioned on an inventory of the world’s “worst case” breaches of worldwide labour legislation if it continues with its proposal to alter Fair Pay Agreements to incorporate obligatory collective bargaining.

BusinessNZ
says the introduction of Fair Pay Agreements would primarily power collective bargaining, which might have detrimental results for the nation and its status, in addition to set a foul instance globally, whereas the FT says the Fair Pay Agreements would reverse 30 years of labour market deregulation.

The UN International Labour Organisation (ILO) final week stated it was in favour of collective bargaining and that collective bargaining within the office was important for the worldwide restoration post-Covid-19 pandemic.

But the ILO, like BusinessNZ, is anxious that the proposal doesn’t assist voluntary bargaining however moderately enforces it, Kirk Hope, chief government of BusinessNZ, instructed the Herald.

“The problem with this proposal is it compels people to bargain which sends a pretty bad signal to many other countries,” he stated.

“It is quite serious to compel people to a bargaining table, which is why again the ILO language in their conventions are all about supporting and governments putting in place things to support collective bargaining, not compelling people.”

If enacted, the Fair Pay Agreements would breach the liberty of affiliation guidelines and conference 98 regarding voluntary bargaining, Hope stated. “There is compulsory mediation as well so that would almost certainly breach convention 98, then there is government intervention that would then breach convention 98. The signal and intention to breach from a country like New Zealand is a pretty serious matter.”

Enterprise-level bargaining was commonplace all over the world, however little or no sector-level bargaining “left in the world”, stated Hope.

“France finally got rid of their sector-level bargaining in 2018, so what that means is workplace bargaining in businesses and enterprises as opposed to what we’re talking about with FPAs’ sector-wide bargaining, hardly anywhere in the world does any sector-wide bargaining anymore.

“Most international locations have stated a) it stifles innovation, it disables areas in favour of cities and it might probably have a variety of fairly important impacts which is why they’ve all moved to enterprise-level bargaining.”

Other countries had recognised that sector-level bargaining was not conducive to good-quality economic outcomes or good quality labour market outcomes, Hope said.

“There are various issues the Government could do which they could do in the event that they correctly recognized their issues in sectors.

“No OECD economy has moved to further centralised wage bargaining since 1970s so that tells you how out of step these proposals are.”

Because of the Government’s proposal, the ILO has included New Zealand on the record of the 40 worst instances of breaches of worldwide labour treaties, which can be examined at this 12 months’s International Labour Conference to be held in Geneva in June.

Hope stated the very fact New Zealand was included on an inventory alongside Afghanistan and Venezuela, and simply forward of Nigeria, confirmed how flawed the proposed FPA Legislation was for New Zealand.

Other international locations on the record for collective bargaining embrace Columbia, Egypt, Hungary, Iraq, Malaysia and Mauritius.

“Clearly the International Labour Organisation, which this Government is a founding member of, sees the introduction of compulsory Fair Pay Agreements as trampling on people’s human rights. It is a clear infringement of workers’ and employers’ right to freedom of association.”

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