Strikes ruled out in fair pay talks Q&A

Action by either side barred in planned system

The Government has established the Fair Pay Agreement Working Group, which will make recommendations on the design of a sector-level bargaining system. Unions and employers will create the agreements once laws to enable them are in place.

What is a Fair Pay Agreement?

An agreement between unions and employers that sets minimum terms and conditions of employment for all workers in an entire industry or occupation.

What makes them different to minimum employment standards?

Fair Pay Agreements will:

Be based on the generally accepted minimum terms and conditions in the industry or occupation

Be set by sector-level collective bargaining between unions and employers that represent an industry or occupation

Apply only to the particular industry under the agreement.

What makes them different to collective bargaining?

Fair Pay Agreements are minimum terms that will apply to all workers in an entire industry without the need to bargain with every employer individually. Industrial action (strikes and lockouts) will not be permitted in negotiations.

Who is in the working group?

Rt Hon Jim Bolger — 35th Prime Minister of New Zealand, former Minister of Labour

Dr Stephen Blumenfeld — director, Centre for Labour, Employment and Work at Victoria University

Steph Dyhrberg — partner, Dyhrberg Drayton Employment Law

Anthony Hargood — chief executive, Wairarapa-Bush Rugby Union

Kirk Hope — chief executive, BusinessNZ

Vicki Lee — chief executive, Hospitality NZ

Caroline Mareko — senior manager, Communities and Participation, He Wha¯nau Manaaki o Tararua Free Kindergarten Association

John Ryall — assistant national secretary, E tu¯

Dr Isabelle Sin — fellow, Motu Economic and Public Policy Research, and adjunct senior lecturer at Victoria University

Richard Wagstaff — president, CTU