Fair Pay Agreements repealed, Three Waters officially on notice

Thursday, 14 December 2023

Fair Pay Agreements have been scrapped by the new Government.

The Government pushed the repeal of the law through under urgency, with Workplace Relations Minister Brooke van Velden describing FPAs as a “one-size-fits-all model that could be initiated by a union and small number of employees, yet they would have applied to every employee and employer within coverage”.

“If finalised, these agreements would have made it tougher for businesses who are already struggling in a cost of living crisis by piling on rigid and costly legislation,” she said.

She said they could lead to worse outcomes for workers.

“If bargained wage increases meant businesses cannot remain competitive, the fair pay agreements would have resulted in lower employment or reduced hours of work—which is not good for workers in our economy.”

It comes as the Local Government Minister Simeon Brown announced on Thursday Cabinet has agreed to to repeal the Three Waters/Affordable Waters reform legislation early next year.

“The Coalition Government will instead implement a new regime which recognises the importance of local decision-making and flexibility for communities and councils to determine how their water services will be delivered in future,” Brown said.

“We will do this while ensuring a strong emphasis on meeting rules for water quality and long-term investment in infrastructure.”

Porirua mayor Anita Baker welcomed the decision.

“I’m rapt the new Government has kept their word and committed to reform. Now we have to work co-operatively on the detail to get the best legislation possible.”

Parliament is also repealing the Clean Car Discount legislation, likely to go through all stages by the end of Thursday, or on Friday.

Labour’s workplace relations spokesperson Camilla Belich said repealing the FPAs was “absolutely unconscionable that this Government is prioritising taking away rights from these vulnerable low-paid workers before Christmas”.

“They should be ashamed of themselves.”

NZ Council of Trade Unions President Richard Wagstaff said the repeal would hurt “hundreds of thousands of New Zealand’s most vulnerable workers”.

“This Government is off to a horrific start. Every policy they have up for repeal will do untold damage to marginalised Kiwis. We deserve better.”

It has been just over a year since unions celebrated the passing of FPA legislation, which aimed to strengthen workers' bargaining powers, particularly in low-paid sectors.

In October, unions were keen to plough ahead for the fewer than 10 sectors looking to find consensus with employers through FPAs, such as cleaners, security guards and bus drivers.

On Wednesday, about 80 people arrived at Parliament to call for FPAs to remain and unions represented included NZEI, PPTA, AWUNZ and Unite.