FAIR PAY AGREEMENTS

 

The main things you need to know:

 

  • The Fair Pay Agreements Bill has now passed; however, the provisions allowing unions to initiate bargaining in any sector will not commence for one month.

  • It has been signaled that the first agreements off the rank will likely cover security officers, bus drivers, cleaners, hospitality, some retail workers, and the forestry industry.  

  • We expect to see at least one FPA initiated by the end of the year; however, the process until a FPA is fully ratified and in effect may take quite some time.  

  • If a union initiates bargaining in a sector that covers any of your employees, you will have immediate obligations as an employer including providing the contact details of your staff to the initiating union, allowing union representatives into your workplace at any point in time for the purposes of engaging with your employees, and providing sufficient information to your employees at each step of the process – or risk penalties. 

  • The Chamber will be providing guidelines and resources to help you understand your obligations, should a Fair Pay Agreement be initiated in a sector that affects you.  If you are interested in being kept informed as further information comes to hand, please email us on [email protected] to ensure you receive this as soon as it becomes available. 

  • The legislation is complex and technical in parts, and we are currently working alongside BusinessNZ and our wider network to understand the best role for us to take to aid our members. 


Click here to read our media release from 27 October.

If you need any advice on Fair Pay Agreements, please contact our team at [email protected] or 03 366 5096.

RESOURCES


Overview of the Fair Pay Agreements process

Employees, employers and their bargaining sides all have different roles and responsibilities in the Fair Pay Agreements process. Learn about these roles and the steps of the process here.


The Fair Pay Agreements system

This diagram illustrates the FPA system which includes initiation of a proposed FPA, the bargaining process, voting (ratification) on the employment terms, and finalisation. Once finalised, the Fair Pay Agreement is put into law.


Employer responsibilities and rights in the Fair Pay Agreement process

Learn about your rights and responsibilities under the Fair Pay Agreements law and how to take part in the process as an employer.


Understanding Fair Pay Agreements: A quick guide for employers

A Fair Pay Agreement must include who is covered by the FPA; standard hours; minimum pay rates, including overtime and penalty rates; training and development; how much leave an employee can have; and how long the FPA applies for.  A quick guide for employers can be found here.