Fair Pay Agreements not suitable for New Zealand

"This kind of approach in past years led to wage inflation, higher prices and strikes."

BusinessNZ endorses the New Zealand Initiative’s report ‘Why Fair Pay Agreements would be bad for labour,’ and agrees that compulsory sector-wide bargaining would not be a suitable system for New Zealand.

BusinessNZ Chief Executive Kirk Hope says the report accords with the employer views expressed during the Fair Pay Agreement working group.

“Having Fair Pay Agreements centrally negotiated by unions and industry reps would mean businesses losing the freedom to set wage rates appropriate to their own workplaces.

“This kind of approach in past years led to wage inflation, higher prices and strikes.”

Mr Hope said the NZ Initiative report identified other policy approaches that would better serve productivity and growth and cost of living issues, including improving education outcomes, addressing housing affordability and continuing to make New Zealand an attractive investment environment.

“As an alternative to Fair Pay Agreements, we would encourage the Government to consider these policy approaches.”

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