Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Government Fair Pay Agreement Proposal Will Harm Workers And Consumers

The Government’s proposal announced today to impose compulsory industry-wide collective bargaining on employees and employers without their agreement or even their participation will harm everyone but unions,” said Roger Partridge, chair of The New Zealand Initiative.

Partridge said The New Zealand Initiative’s 2019 report, Work in Progress: Why Fair Pay Agreements would be bad for labour, found that Fair Pay Agreements would be likely to harm productivity and would be not be in the interests of workers, the unemployed, consumers, and overall wellbeing.

“Rather than advancing the government’s vision of a high-wage, high-productivity economy, Fair Pay Agreements would undermine it,” Partridge said.

The Initiative’s 2019 report examined the claims in favour of Fair Pay Agreements proposals and found there were no good grounds for them. Its research revealed New Zealand’s labour market settings were actually working well for both workers and firms.

Unemployment in New Zealand is comparatively low when measured against the country’s OECD peers. Labour market participation rates are among the highest in the world. Wages are tracking productivity growth. And real wages for all wage-deciles have been rising since the labour market reforms in 1991, abolishing New Zealand’s then system of compulsory industrial awards.

Partridge said, “The case for FPAs rests on alleged shortcomings in the operation of New Zealand’s labour markets. However, the Initiative’s research reveals the concerns are either misconceived or that there is no good reason to believe FPAs will help solve them.”

“Like the other arguments for FPAs, the ‘race to the bottom’ concern is a myth. The data shows that average wage rates have risen faster than inflation across all income deciles. Workers’ wages are simply not being bid down by employers on an ever-decreasing basis,” Partridge said.

Partridge said, “The failings of the Fair Pay Agreement Working Group resulted in flawed Fair Pay Agreement recommendations. Those flawed recommendations have been carried forward in the Government’s proposals announced today. They will harm everyone except the country’s unions. If the Government is serious about the wellbeing of New Zealanders, the proposals must be abandoned.”

Read our 2019 report, Work in Progress: Why Fair pay Agreements would be bad for labour.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The America’s Cup, Critical Race Theory And A New, Weekly Music Playlist

So… Why don’t they just cut to the chase, and call it the Emirates Cup? As this column predicted several months ago, the next America’s Cup challenge is headed overseas. Here’s what Werewolf said back in March:
Emirates has made a major commitment to Portsmouth/Isle of Wight as a sailing centre of excellence – and voila, that’s where the next challenger of record is coming from, and where the next Cup contest could well be sailed. Such incredible luck for Emirates, right..? More>>


Marine: Wider Roll-out Of Cameras On Boats To Support Sustainability And Protect Marine Life

Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations... More>>


Government: Plan For Vaccine Rollout For General Population Announced

New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today... More>>


Jewish Council: New Zealand Not Immune From Rise In Antisemitism

The representative body of New Zealand Jewry, the NZ Jewish Council (NZJC), has expressed concern about the high number of antisemitic incidents in New Zealand recorded last month. Spokesperson for the NZJC, Juliet Moses, said... More>>

NZNO: Nurses Reject DHB Offer And Confirm Strike Action

The New Zealand Nurses Organisation says its 30,000 members who work in DHBs have voted overwhelmingly to reject a second offer in their current round of multi-employer collective agreement (MECA) negotiations... More>>





InfoPages News Channels