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New Zealand: Parliament passed legislation to abolish Fair Pay Agreements

We previously reported on the introduction of the Fair Pay Agreements Bill. This controversial legislation provides a framework for collective bargaining for fair pay agreements across entire industries or occupations rather than just between unions and particular employers.

Employers' organisations have always strongly opposed this reform, considering it not in line with international labour standards and limiting flexibility and autonomy in the workplace.

The opposition had committed to repealing the law, and this happened. 

The FPAA Repeal Bill, according to its explanatory note, "removes the bargaining framework that enables unions and employer associations to bargain fair pay agreements that specify industry- or occupation-wide minimum employment terms, and that enables the Employment Relations Authority to determine those minimum employment terms in certain circumstances."

Until now, no FPAA had been finalised. 

Therefore, the impact of the Bill will be to remove the possibility of finalising any FPA by restoring the previous regulatory framework, which gives employers and employees (or the unions) flexibility and autonomy in agreeing to their terms and conditions of employment (provided that these are above the minimum entitlement provisions specified in the Employment Relations Act 2000).

Organisations that collect information for Fair Pay Agreement applications must ensure compliance with the Privacy Act 2020.