The total concept of Fair Pay Agreements proposed by Government makes no economic sense, says the Employers and Manufacturers Association (EMA).

The EMA’s chief executive Brett O’Riley says, "We will be analysing and actively responding to consultation on the recommendations for Fair Pay Agreements (FPAs) that were announced today, on behalf of our members that span all industry sectors.

"The recommendations are fairly lofty and non-specific at this stage. We want to reassure our members that Fair Pay Agreements are not about to be implemented - there is no timeframe for that, although the Government has said that in its first term (till late 2020) it wants one or two "low-paying" industry sectors to be regulated by FPAs

The Government says Fair Pay Agreements are proposed to set minimum standards to lift and conditions across an industry or occupation.

Says Mr O’Riley, "Our specific concerns with FPAs as recommended so far are:

- The non-voluntary nature of the agreements,

- The very low initial thresholds to activate a FPA, and

- There is nothing to address lifting productivity.

"While there is a lot of discussion yet to be had, we urge the Government to have an open mind to other proposals and not make the discussion a mere formality."

ENDS

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