Fair Pay Agreements

The Government has announced the design of the new Fair Pay Agreement system.

The Fair Pay Agreement system will bring together employers and unions within a sector to bargain for minimum terms and conditions for all employees in that industry or occupation. The proposed system will include support for bargaining parties to help them navigate the bargaining process and reach an outcome, as well as processes to ensure compliance.

Fair Pay Agreement system

In May 2021, the Government announced the design of the Fair Pay Agreement system. The design was informed by the Fair Pay Agreement Working Group and public consultation, as well as involvement from the New Zealand Council of Trade Unions and BusinessNZ.

A summary of the proposed Fair Pay Agreement system design is below.

Next steps

The Fair Pay Agreements Bill is expected to be introduced later in 2021. People will have an opportunity to comment on the Bill during the Select Committee process.

Background documents

Fair Pay Agreement discussion paper

In October 2019, the Government released a discussion paper that sought feedback on a range of options for the design of a Fair Pay Agreements system. The consultation closed 27 November 2019.

Read the Minister's announcement on the release of the Working Group's report(external link) — Beehive website

Fair Pay Agreement Working Group

A Fair Pay Agreement Working Group was set up in June 2018 to make recommendations on the design of a sector-level bargaining system. It was chaired by Rt Hon Jim Bolger ONZ.

The Working Group looked at:

  • the criteria and process to initiate bargaining on a Fair Pay Agreement
  • how bargaining participants will be identified and selected
  • what Fair Pay Agreements should cover in terms of scope
  • bargaining rules and dispute resolution processes, and ratification and enforcement of Fair Pay Agreements.

The Working Group provided its recommendations to the Minister for Workplace Relations and Safety in December 2018.

Announcement of the establishment of the Working Group(external link) – Beehive website

Proactive release of policy advice on Fair Pay Agreements

Last updated: 08 July 2021