Collective bargaining step closer
The Government has released its decisions on how unions and employers would interact to set fair pay agreements, which would represent the biggest shift in industrial relations since the early 1990s.
A Labour Party key manifesto pledge in 2017, the agreements would aim to standardise and improve terms and conditions across entire industries or occupations. Labour says the agreements have “significant similarities” to Australia’s modern awards system.
As well as representing a step towards collective bargaining — which was largely swept aside with the passing of the Employment Contracts Act in 1991 — the agreements would give a structural importance to the union movement, putting it at the centre of negotiations even in occupations where union coverage is negligible.
Fair Pay Agreements would improve wages and conditions for employees and encourage businesses to invest in training, Workplace Relations Minister Michael Wood said.
Progress has been difficult, with opposition from employers. Businessnz reiterated its opposition to the agreements yesterday, claiming key policy decisions were still to be made.
The Council of Trade Unions (CTU), meanwhile, said the agreements “will provide a framework for fairness” for workers.
Yesterday’s announcement, more than two years after a working-group report on the agreements was publicly released, sees its key recommendations accepted by Cabinet.
Cabinet has agreed a fair pay agreement process could be started by a union showing support from either 10 per cent or 1000 employees in the industry or occupation.
The process could also be initiated via a public interest test, which would take into account the low pay or limited bargaining power or workers.
Once initiated, unions would represent workers in negotiations, while employers would choose who would represent them.
If the sides failed in two attempts to ratify an agreement (with a simple majority required on each side), the Employment Relations Authority would make a binding determination.