An equitable compensation agreement is not limited to payment, but to fairness. A structured process will include negotiations on a fair compensation agreement, and the government will provide funding to ensure a fair negotiation process. There will be specific ways to trigger the negotiation of an equitable compensation agreement. The PSA welcomes the Commission`s view on climate change that workers and trade unions are contributing to the development of a strategy to ensure that the costs of the transition to a low-emission Aotearoa are shared equitably. Fair compensation agreements apply to an entire industry that sets minimum terms and conditions of employment. Collective agreements, on the other hand, apply only to union members. Unions will represent workers in collective bargaining, whether unionized or not. While it appears that there will be “opt-out” mechanisms for workers who do not want to be actively represented by a union (or a particular union), all workers will be covered by the final agreement. When negotiations are initiated, employers are obliged to negotiate (jointly) to conclude a sectoral agreement on fair wages. Workers and employers covered by the proposed agreement could participate in the ratification process. In the case of employers, there will be a low weighting compared to small businesses to ensure that they have a say in this process. Strikes would be prohibited during negotiations.
Like the collective bargaining process, the fair wage agreement process is designed so that the parties negotiate directly and agree on the terms and conditions. We expect that there will be real practical difficulties in this regard, as many employers who should be working together will be competitors and many employers will have different interests in the bargaining process. As with collective bargaining, there are several options for litigation as the bargaining process continues with fair wage agreements – including the Industrial Relations Authority, which is responsible for determining whether the initiation threshold has been met (the above representations or the public interest criteria). An agreement on equitable remuneration must also be “reviewed” by the authority before proceeding to a ratification vote. This can be an unpleasant task for an organization that traditionally (with a few exceptions) settles disputes between the parties and does not establish or approve terms and conditions of employment. Once agreed, fair wage agreements would cover all workers (unionized and non-unionized) in an industry, regardless of union membership status and regardless of whether each party had the opportunity to participate in negotiations and agreed with the outcome. Under the agreement, unions can request that union members receive additional wages up to the value of their union dues. Fair wage agreements would not replace existing employment contracts (i.e., workers get the most out of each agreement). The proposed system does not apply to independent contractors; However, it is expected that contractors will be included in a future amendment to the act as a result of the inevitable reform of the Independent Contractors Claims and Protection Act. Strikes will not be permitted in the context of the negotiation of FPAs, but our right to strike in the negotiation of normal collective agreements will remain unchanged.
The PPA will not replace existing employment contracts and we will continue to negotiate new collective agreements, including in industries where the FPAs come into force. Our collective agreements will be based on the ground established by the FPAs. The New Zealand government has acknowledged that despite economic growth over the past 30 years, wages are not keeping pace with work. This has had a disproportionate impact on middle-income earners, while higher-income wages have continued to rise. Less than 20 per cent of New Zealanders are engaged in collective bargaining, up from 70 per cent three decades ago. The Fair Pay agreement aims to ensure a fairer development of wage standards. The Government seeks to achieve short- and long-term results under equitable compensation agreements, as outlined in the Draft Fair Compensation Agreement document. The Government hopes that short-term results will be achieved; For more information on the Fair Wage Agreements Policy process, please email us at fairpayagreements@mbie.govt.nz. This means that workers who are not members of a union are bound by the FPA for their minimum duration. Union members can then negotiate collective agreements to improve the minimum wage set by the PPA.
A fair wage agreement is an industry- or occupation-wide agreement that establishes minimum conditions for all parties involved (employers and employees). It would cover base wage rates, overtime rates and penalty interest. Other terms (such as severance pay and leave) can be included by appointment. An agreement may provide for regional differences to account for the cost of living. Collective agreements and individual employment contracts would continue to be available to provide additional and improved terms (i.e., wage rates in the fair pay rate would be a minimum). In October 2019, the government released a discussion paper seeking input on a number of options for designing a fair wage agreement system. The consultation closed on November 27, 2019. No one predicted the magnitude of the additional spending in this year`s budget, but CTU economist Craig Renney asks where the best vision for reconstruction is. Fair wage agreements will be the best change for workers in decades. They will set minimum standards across all sectors so that we can achieve decent work – better wages, hours of work, health and safety, education and employee participation in decision-making. Step Three: A proposal will be voted on by all employees in the sector, employees and employers. If both parties agree, the proposal will be adopted and your APP will enter into force throughout New Zealand.
Janice Panoho has been fighting for a better life for Maori since joining Land March in 1975 and continues to do so in her new leadership role at PSA. “Why New Zealand needs fair wage deals” – Article by Assistant National Secretary Annie Newman In short, there are still far too many grey areas to form a firm opinion – the government has a huge amount of work ahead of it to sort out the details of how FPAs will practically work in our markets. Following the recommendations of the Fair Compensation Agreement Task Force in February 2019, the Government has now formally announced the proposed design of the Equitable Compensation Agreement system in New Zealand. The proposed design is essentially the same as that proposed by the working group in 2019. The core of the proposal is a framework that would require employers and employees to agree on minimum standards across all sectors – a lower limit on working and employment conditions. This is similar to Australia`s industrial supply system and New Zealand before the Employment Contracts Act of the 1980s. This proposal is just that – a proposal. There is still a long way to go before it becomes law, with a bill that will be submitted to Parliament “later this year”. At that time, it will be possible to give opinions on the proposed new law. Second step: employers` and employees` representatives sit down together and try to reach consensual conditions for wage rates and conditions that will become the new minimum floor.
“I find lexology very relevant and I have registered other companies for which I offer a library service to obtain lexology, because I think it is a very rewarding legal resource.” Library staff and supporters wore purple on May 13 to celebrate the second anniversary of our library assistants` demand for pay equity. Under the new law, PPA negotiations could be triggered by unions when a threshold of representation of 1,000 workers in a particular industry or 10% of the total number of employees in that industry is reached. There is also a separate public interest test that applies when workers who would fall under the FPA may face labour market issues such as vulnerability. .