Task force for bargaining

FORMER National prime minister Jim Bolger will lead the Government’s latest working party on establishing fair pay agreements, taking the total working parties or inquiries to about 105.

Workplace Relations and Safety Minister Iain LeesGalloway said the Government had a vision for a highly skilled an innovative economy, delivering good jobs, decent work conditions and fair wages, while supporting economic growth and productivity.

The best way to create a highwage economy was through productivity growth.

The aim of the agreements was to prevent a race to the bottom, he said.

‘‘We must ensure workers and businesses benefit from economic growth. While wages have generally grown in the toptwo and bottomtwo deciles, wages for middle New Zealand have not kept up and as a result feel squeezed by rising costs — particularly housing.’’

Through the team led by Mr Bolger, the Government intended introducing legislation to allow employers and workers to create fair pay agreements setting minimum employment terms and conditions for all workers in the industry or occupation covered by the agreement, Mr LeesGalloway said.

The agreements would help lift wages and conditions and ensure good employers were not disadvantaged by paying reasonable, industrystandard wages.

‘‘It is time to move towards new models of bargaining. It is time New Zealand adopts a sectorlevel approach that is common across the developed world.’’

Mr Bolger and his team of 10 would develop recommendations on the design of a fair pay agreement system and report back by the end of the year.

The Government would work closely with businesses, organisations and workers to develop a new and enduring framework to the benefit of employers and workers.

Council of Trade Unions president Richard Wagstaff, a member of the working party, said the announcement was a turning point from 30 years of struggle for working people, for homegrown business, and small communities sustained by Kiwi industries.

The last government said low wages were New Zealand’s competitive advantage.

Fair pay agreements put New Zealanders first and showed the real competitive advantages were Kiwi values of dignity, opportunity and respect, he said.

National Party workplace relations and safety spokesman Scott Simpson said the announcement would send a chilling message to employers, and exporters’ competition would be sacrificed to advantage unions.

‘‘The Government fails to explain why these changes are needed. In an environment of record job growth, they make no sense for the New Zealand economy, employers, or the 82% of workers who do not belong to a union.’’

The changes appeared to be a pay off for Labour’s union supporters, he said.