Politics

Parliament repeals Fair Pay Agreements

10:48 am on 14 December 2023

Photo: RNZ / Cole Eastham-Farrelly

Parliament has passed the legislation repealing Fair Pay Agreements through its third reading, under urgency.

The previous Labour government passed the law to enable the agreements - which aimed to allow unions and employer associations to bargain for bottom-line terms and conditions, covering entire sectors - in March last year.

It took effect in December last year but no agreements have yet taken effect.

A bill repealing that has now passed its third reading in Parliament - with support from National, ACT and New Zealand First.

Labour, the Greens and Te Pāti Māori opposed the repeal.

The incoming government campaigned on abolishing the law, committing to do so before Christmas in the coalition agreements.

Businesses had long opposed the legislation, saying it would impose extra conditions on them, increasing costs.

The move was fiercely criticised by the left bloc, which argued it takes workers deemed 'essential' in the pandemic backwards.

Workplace Relations Minister Brooke van Velden said today's repeal had been a long time coming.

"Fair pay agreements were never about fairness, they forced a minority of union worker's views on all affected workers and businesses and this government opposes the views that were put forward by the previous government and that law."

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The House is still in urgency as the government moves on to repealing the clean car discount.