Bolger to labour on pay law

clever move, and one that has been lifted straight out of the play book of former prime minister Sir John Key.

Bolger’s appointment shows the willingness to reach bipartisan support.

It will also dispel some of the fear factor surrounding the Government’s industrial relations agenda as ideological and hostage to Labour’s union supporters.

The Key government built goodwill early by reaching out to the unions, including the late Helen Kelly, and one of Key’s earliest appointments was former Labour finance minister Sir Michael Cullen, to show that the National government he led was not ideological.

The Fair Pay Act was the cornerstone of sweeping industrial relations changes proposed by Labour at the last election but business has been so spooked by the move the Government has been forced to move slowly.

The uncertainty has contributed to a slump in business confidence, acknowledged recently by Prime Minister Jacinda Ardern in a speech to a business audience as the ‘‘elephant in the room’’.

Labour has already toned down its policy to scrap National’s 90-day ‘‘fire at will’’ legislation by limiting it to big business.

Its softly, softly approach on fair pay agreements includes a long lead time before any legislation is introduced – Christmas at least.

Workplace Relations Minister Iain Lees-Galloway has also attempted to keep the lines of communication open with its biggest critic by co-opting business into the process, with the inclusion of Business New Zealand.

But the immediate reaction of business reveals the depth of unease within the sector over the agreements, which will impose minimum pay and conditions industry and sector-wide.

Business groups have made it clear they are reserving the right to throw stones, even from inside the tent, or even pull out if they are not happy.

The Government’s assurance that the legislation will ban strikes and lockouts in fair pay negotiations is an attempt to ease some of their concerns.

Bolger outlined his reasons for supporting the review, including the sense that the world was no longer fair and middle New Zealand was an example of that.

But after decades of the pendulum moving in the direction of employers, all the signs are that the Government is facing potentially the biggest fight of its first term in attempting to shift it back.