The Government has introduced Fair Pay Agreement legislation into Parliament.

The Fair Pay Agreement system will bring together employers and unions within a sector to bargain for minimum terms and conditions for all employees in that industry or occupation.

The Bill proposes that employers and employees will be represented by bargaining parties – unions will represent employees, and employers will be represented by incorporated societies, such as employer representative organisations. This won’t require employees or employers to join those organisations to have a voice – non-members must be given opportunities to feed into bargaining strategies.

The proposed system will offer support for bargaining sides to help them navigate the bargaining process and reach an outcome, as well as guidance and processes to resolve disputes and ensure compliance.

New Zealanders will soon have an opportunity to make submissions to comment on the Bill during the Select Committee process.

The Fair Pay Agreement system is expected to commence shortly after the Bill has passed, anticipated to be at the end of 2022. 

For further information, see Fair Pay Agreements – MBIE