[3][4] On 14 December 2023, the National-led coalition government repealed the Fair Pay Agreements Act as part of its first raft of legislative changes.
It also outlined the criteria for employee bargaining parties to access enter workplaces with the exception of dwellinghouses, national security or religious grounds.
[6] In June 2018, the Sixth Labour Government established a Fair Pay Agreements Working Group to advise on the design of a sector-level bargaining system.
The Government proposed addressing these issues by establishing a Fair Pay Agreement (FPA) system to facilitate collective bargaining between employers and unions to reach agreed minimum standards for pay and working conditions, provide support for bargaining parties in negotiating the FPA process, and ensure compliance.
[7] The Working Group released its report to the Minister for Workplace Relations and Safety Iain Lees-Galloway in December 2018.
This report discussed the issues facing the development of fair pay agreement system in New Zealand and gave advice on the legal and enforcement mechanisms.
[8] In October 2019, the Government released a discussion paper seeking feedback on a range of options for the design of the FPA system.
Second, the discussion paper defined the key bargaining parties (unions and employers' representatives), the scope of the agremeents and exemptions.
The bill's sponsor Labour MP Michael Wood (the-then Minister for Workplace Relations and Safety) argued that a fair pay agreements system would protect the rights and economic security of workers, and provided a framework for sector-wide collective bargaining between employers and unions.
Similar sentiments were echoed by fellow Labour MPs Stuart Nash, Meka Whaitiri, Marja Lubeck, Angela Roberts, Camilla Belich, Ibrahim Omer and Green MP Jan Logie, who argued that the FPA system did not target "good" employers, would protect workers' rights, ensure fairness in the workplace, address cost of living pressures.
[10] National MPs Paul Goldsmith, Scott Simpson, David Bennett, and Todd McClay and ACT MP Chris Baillie argued that the FPA system would favour unions at the expense of employers and employees, impede entrepreneurialism, and impose red tape on businesses, and harm the economy.
Goldsmith claimed that trade unions were increasingly irrelevant in New Zealand and that the bill amounted to "compulsory unionisation" by stealth.
On 5 October 2022, the Education and Workforce Committee released its report, recommending that the Bill proceed to further readings with some amendments.
While Labour, the Greens, Te Pati Māori and independent candidate Gaurav Sharma voted to progress the legislation, National and ACT affirmed their opposition to the Fair Pay Agrements Bill.
While Labour, Green parties and Te Pati Māori supported the Bill, it was opposed by National and ACT.
[14] By contrast, Retail NZ chief executive Carolyn Young welcomed the repeal of Fair Pay Agreements, claiming they were inflexible and complicated employment laws.
While the repeal bill was supported by National, ACT and NZ First, it was opposed by Labour, the Greens and Te Pāti Māori.
The Minister for Workplace Relations and Safety Van Velden welcomed the repeal of the FPA Act, stating that "fair pay agreements were never about fairness, they forced a minority of union worker's views on all affected workers and businesses and this government opposes the views that were put forward by the previous government and that law.