Workplace Relations and Safety Minister Brooke van Velden says the Fair Pay Agreements saves taxpayers $65 million.

“Scrapping the Fair Pay Agreements programme saved taxpayers $65 million over five years,” says Workplace Relations and Safety Minister Brooke van Velden.

“One of my first acts in Government was repealing the unfair and unpopular so-called Fair Pay Agreements system, in part because it would have had a detrimental effect on employment patterns and economic productivity.

“If Fair Pay Agreements had gone ahead, it would have required significant growth in MBIE’s employment services and the Employment Relations Authority because of the increased strain the system would have had on those services.

“We moved fast on this commitment and removed this blunt tool that would have increased bureaucracy and reduced flexibility for businesses.

“This government is committed to lifting productivity and driving economic growth. To do so, there needs to be agile labour markets where employers and employees can agree on terms that suit their unique situation,” Ms van Velden said.

The Fair Pay Agreements legislation was repealed in December 2023.

“New Zealanders elected a Government that would get government spending under control and deliver more efficient and effective public services. We make no apologies for starting to put things right.”.

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