MBIE opens probe into Cabinet paper leak: PM
The ministry had “proactively” and “of its own volition” started the investigation. Prime Minister Christopher Luxon
Prime Minister Christopher Luxon says the Ministry of Business, Innovation and Employment (MBIE) is “acting swiftly” and has started an investigation into the leaking of a Cabinet paper outlining his Government’s intention to repeal the Fair Pay Agreement (FPA).
Luxon said he has “full confidence” in his ministers, despite the paper being leaked in the first week of his premiership.
Cabinet papers are supposed to be highly-confidential documents which set out advice on an issue.
The ministry had “proactively” and “of its own volition” started the investigation, Luxon said ahead of a National Party caucus meeting in the Beehive.
Housing Minister Chris Bishop said it was “no secret” the Government wanted to repeal the Fair Pay Agreements, legislation which came into force last December.
“I just don’t think the sort of breathless reporting of it is necessarily justified by the scale of the leak,” Bishop said. “Everyone knows we're repealing fair pay agreements. That’s not a secret.”
The legislation set out details for agreements between workers and employers in an industry or occupation, including over minimum pay, overtime and penalty rates, leave entitlements, and access to training and development opportunities.
It was broadly supported by employees, but some employers and employer associations were against it and raised a number of concerns over the compulsory nature of Fair Pay Agreements, the complexity of the processes set out in the Bill, perceived litigation risk, lack of representation of employers, and potential impacts on business costs, productivity and inflation.
National has promised to repeal the legislation within its first 100 days in office.
The leaked paper, first reported by Newshub, outlined how repealing the legislation and returning to the status quo would be less effective at improving worker outcomes, and could disproportionately impact women, Māori and Pasifika and young people.
It said the main beneficiaries of repealing the FPA system would be employers who would retain the flexibility to set worker terms and conditions in line with current bargaining structures.
“The main costs of repealing the FPA system would likely fall on employees who would otherwise be in scope of proposed bargaining or coordination arrangements.
“They may have benefited from increased wages and improved terms and conditions of work.
“Depending on the sectors/occupations where FPAs are concluded, they could disproportionately benefit some population groups covered (including women, young people, Māori and Pacific peoples),” it read.