5 Fair Pay Agreements have been approved to start bargaining

Published 4 July 2023 | 2 min read

Update on Approved Fair Pay Agreements for Bargaining in New Zealand

Employment New Zealand has recently approved the initiation of bargaining for Fair Pay Agreements (FPAs) in New Zealand. These agreements aim to promote fair wages and working conditions in specific industries and occupations. As small-to-medium managers and decision-makers, it is important to stay informed about the latest developments regarding FPAs and understand the actions required from employers. In this article, we will provide an update on the five FPAs that have been approved for bargaining, as well as the necessary steps employers must take to comply with the regulations.

Five Approved FPAs:

  1. Early Childhood Education Industry: The FPA for the early childhood education industry has been approved for bargaining. This agreement seeks to establish fair pay rates and employment standards for workers in this vital sector.

    Download Public Notice of Approval of Application

  2. Commercial Cleaner Occupation: The FPA for the commercial cleaner occupation has also been approved. This agreement aims to ensure that cleaners receive fair wages and fair working conditions that reflect the value of their work.

    Download Public Notice of Approval of Application

  3. Hospitality Industry: The FPA for the hospitality industry is now open for bargaining. This agreement will focus on improving wages and conditions for workers in this dynamic and diverse sector.

    Download Public Notice of Approval of Application

  4. Security Officers and Guards Occupation: The FPA for the security officers and guards occupation has been approved. This agreement aims to address concerns regarding pay rates and working conditions for these essential workers, providing them with a fair and sustainable livelihood.

    Download Public Notice of Approval of Application

  5. Bus Transport Industry: Bargaining for the FPA in the bus transport industry has been initiated. This agreement seeks to improve the wages and employment conditions of bus drivers, recognising their crucial role in keeping New Zealand's transportation system running smoothly.

    Download Public Notice of Approval of Application

While the five mentioned FPAs have been approved for bargaining, applications for two additional agreements are still being considered by MBIE. These are the Waterside Workers Occupation and the Supermarket and Grocery Store Industry FPAs. Further updates will be provided once the decisions are made.

Actions Required by Employers

If your business employs individuals in an occupation or industry covered by one of the approved FPAs, the following actions are mandatory:

  • Engage in Good Faith: Engage with your employees and union bargaining parties in good faith. Communicate openly about Fair Pay Agreements, ensuring transparency and avoiding misleading or deceiving actions.
  • Avoid Undue Influence: Do not exert undue influence on your employees regarding their decisions to join a union or vote on the proposed agreement. Respect their rights to make independent choices.
    Provide Information: Inform your employees about the initiation of FPA bargaining and provide them with relevant documents that the union should send you. This ensures that your employees are well-informed about the process.
  • Collaborate with Unions: If your covered employees are union members, provide FPA information to the respective unions. Make every effort to identify and inform the unions about the approval for bargaining, including sharing the notice of approval issued by the chief executive.
  • Share Union Contact Details: Unless employees have opted out, provide the contact details of the initiating union to all covered employees. This allows them to engage with the union representatives regarding the FPA.
  • Allow Employee Attendance at Meetings: Permit your employees to attend two 2-hour meetings related to the proposed FPA. If these meetings occur during working hours, ensure that employees are allowed to attend without loss of pay.
  • Grant Workplace Access: Allow representatives of employee bargaining parties reasonable access to your workplace. This facilitates discussions about FPAs with your employees and promotes productive negotiations.

As New Zealand moves forward with Fair Pay Agreements, it is crucial for managers and owners to understand their responsibilities and comply with the requirements set forth by Employment New Zealand. By engaging in good faith, providing information, and allowing employee participation, businesses can contribute to the establishment of fair wages and working conditions in the approved industries and occupations. Stay updated on the Fair Pay Agreements dashboard and continue to prioritise fair employment practices in your organisation.

Still unsure about the process?

Our friendly HR and employment experts are just an email or a phone call away. 

Email us at info@eqconsultants.co.nz, or call us on 03 366 4034 for professional, one-on-one guidance.

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