The Post

Bolger-led advice too ‘one size fits all’, says National

- Hamish Rutherford

Nationwide employment negotiatio­ns could be triggered if one in 10 workers in a sector signed up to a fair-pay agreement process, a working group is recommendi­ng.

The working group on fair-pay agreements, headed by Jim Bolger, a former National Party prime minister, has delivered its report to Workplace Relations Minister Iain Lees-Galloway.

A summary of the recommenda­tions, obtained by the National Party, says that either 10 per cent or 1000 workers in an occupation or sector – whichever is lower – would be enough to pass a representa­tiveness trigger, kicking off a fair-pay agreement process.

With limited exemptions, employees and employers covered would be bound by the process, which would be negotiated by unions and employee groups or industry organisati­ons.

If the two sides failed to reach a deal, a deciding body – possibly the Employment Relations Authority – would have the final say.

Although strikes and lockouts related to the fair-pay agreement negotiatio­ns would be prohibited during negotiatio­ns, the working group has recommende­d that strikes about matters unrelated to the agreements would not be.

The Labour Party has said fair-pay agreements aim to set minimum standards across sectors that are above the basic legal requiremen­ts.

However, the National Party and some employment lawyers say the agreements would mark a return to national awards, where industry-wide agreements were struck between unions and business representa­tives.

The agreements have proved so controvers­ial that Prime Minister Jacinda Ardern promised there would be ‘‘no more than one or two’’ agreements reached in the current electoral term, in a major speech to try to reassure business leaders in August.

A spokeswoma­n for LeesGallow­ay refused to comment on the recommenda­tions, beyond saying the report was under considerat­ion by the minister.

Bolger refused to say whether the working group, which included employee representa­tives, was unanimous in its recommenda­tions. Other members also declined to comment.

National’s workplace relations spokesman, Scott Simpson, said the agreements ‘‘farmed out’’ negotiatio­ns, even if a majority of workers or employers did not want to be part of them.

‘‘It’s a one-size-fits-all formulatio­n for negotiatin­g wages, terms and conditions that assumes that every business within a nominated sector actually operates in the same way,’’ Simpson said.

‘‘This is an old-fashioned view of the world that takes us back to at least the 1970s, but probably the 1960s, when we had a command-and-control economy, where it was big unions and big business who made decisions on behalf of all workers and all businesses.’’

Simpson said he had been told the working group process was ‘‘fraught’’ and the recommenda­tions were not unanimousl­y supported by the working group.

Prior to the 2017 general election, business advocacy group BusinessNZ attacked Labour for a lack of clarity on its policy on fair-pay agreements.

The Treasury later warned that the working group was being asked fundamenta­l policy design questions, as it urged the Government to delay its formation.

Susan Hornsby-Geluk, a managing partner at Wellington employment law firm Dundas Street, said fair-pay agreements could mark a major change in industrial relations.

‘‘If FPAs are to cover all employers in a sector or industry, regardless of whether they have individual­ly voted to accept the terms, this will remove an important part of their right to decide how to run their businesses,’’ Hornsby-Geluk said.

‘‘It is a significan­t departure from the current situation where, even in multi-employer bargaining, each employer party has to individual­ly agree to the terms.’’

 ?? TERESA RAMSEY/STUFF ?? National Party MP Scott Simpson says fair-pay agreements are a product of the 1960s, when ‘‘big unions and big business ... made decisions on behalf of all workers and all businesses’’.
TERESA RAMSEY/STUFF National Party MP Scott Simpson says fair-pay agreements are a product of the 1960s, when ‘‘big unions and big business ... made decisions on behalf of all workers and all businesses’’.

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