The Government has failed to listen to business concerns and has doubled down on the worst elements of the Fair Pay Agreements Bill, says BusinessNZ.
The Fair Pay Agreements Bill has now been reported back from select committee prior to it being passed by Parliament. While under select committee consideration, the Bill has been made even worse, says BusinessNZ Chief Executive Kirk Hope.
“Despite widespread concerns expressed by thousands of businesses and individuals about the coercive nature of the proposed legislation, the Government has chosen to retain all the elements of compulsion previously in the draft Bill.
“The Bill still retains the ‘compulsion’ clauses that would take away employees’ and employers’ choice about whether to take part in a Fair Pay Agreement or not.
“Meanwhile, other changes in the amended Bill appear to make the proposed legislation more convoluted, impractical, more open to gaming and more clearly in breach of international law.”
Earlier this year the NZ Government was formally asked by the ILO to ensure the proposed legislation was compliant with ILO Convention 98.
Under Convention 98, the ILO requires collective bargaining to be voluntary and to respect the autonomy of the parties. Government interference by requiring compulsory arbitration or requiring government approval of the results of collective bargaining are not permissible.
Kirk Hope said in all these respects the amended Bill is non-compliant, and the ILO’s response to the Government’s actions could be expected in due course.
“Business has clearly conveyed its unhappiness with the Government’s steamrolling of this unpopular policy.”
Businesses responding to the BusinessNZ Network Survey of Business Opinion last month said FPAs along with other employment law changes were among their highest concerns, coming in just behind staff shortages and cost pressures. FPAs were also implicated in their general uncertainty caused by current or proposed Government policies, Mr Hope said.
“The BusinessNZ Network will continue to advocate for scrapping the proposed legislation.”
