Pay Equity and Fair Pay Agreements

Posted by on 15 November 2017

Pay Equity and Fair Pay Agreements

Labour is not progressing the recent Pay Equity and Equal Pay Bill proposed by National.

The rationale for Labour is that they want to promote a system of comparison that is more generous to workers. For example, the pay in a female-dominated industry could be compared with a male-dominated industry of a similar skill level. The details of the new pay equity scheme under Labour are yet to emerge.

Labour intends to implement a system of Fair Pay Agreements (FPAs) which will be agreed by businesses within an industry and the unions representing workers within that industry. These FPAs will set basic standards for pay and other employment conditions within an industry.

Labour's plan for FPAs is to create a framework for fair wage increases where good employers are not commercially disadvantaged for paying their workers a higher wage.

Whatever changes result, they will significantly impact employers.

I will keep you updated on developments in this area