Well it didn’t take six months, but the leaks have begun. Yes the good ship Coalition has inadvertently released a confidential cabinet paper into the public domain, discussing their axing of Fair Pay Agreements (FPAs).
Oops.
Just when you were admiring how smoothly things were going for the new government, they’ve had a wee faux pas. A small mess.
Now you might be a tad cynical about this. Governments sometimes “accidentally” release documents to see how they float. But somehow I don’t think that was the case here.
The leaked paper talks about the implications of cancelling FPAs on people with low incomes. Particularly women, Māori, Pacific people, and young people, who are “more likely than other groups to earn low wages”.
“Disabled people experience significant disadvantage in the labour market, which includes earning less than non-disabled employees.”
“Given these populations are disproportionately represented in workforces where there are lower employment terms, they could have disproportionately benefited from any improved terms obtained by an FPA.”
The Minister, Brooke van Velden, seemed a bit blasé about the whole thing. Justifying the fact that she was ignoring it by saying “Advice is advice, the Government is the Government and I am here to do what the people voted for”. Quite.
On the one hand that sounds utterly callous, but at least it means National and ACT cannot claim to have worked in the interests of people on low incomes. They are knowingly making legislative change that disadvantages the least well off workers in our country.
A few days ago I received a message from a concerned reader, suggesting I write about FPAs, given that they’ll be gone by Christmas as part of the coalition's 100-day plan.
I was happy to do so, I’ve written about them before. Please note that the newsletter below previously contained a paywall, but I’ve removed that if you’d like to have a read:
But I thought of someone who knew far more about FPAs than I do. Probably more than almost anyone. So I asked Darien Fenton if she’d be interested in perhaps writing a guest newsletter, or contributing a couple of paragraphs to one.
She said she’d be happy to write one, so over to Darien - thanks so much for sharing the background to FPAs, and these thoughts on their cancellation.
Eleven years of work by the labour movement will be gone under Parliamentary urgency before Xmas. Brooke van Velden, the new ACT Minister for Workplace Relations & Health & Safety got in early with a cabinet paper to repeal Fair Pay Agreements which will be passed under urgency before Xmas. The Cabinet paper was leaked in a matter of hours and has now reached the media. Not a good start for Brooke.
This has been long in the making. In 2011 Labour launched its new Work and Wages policy after working with the late Helen Kelly, then President of the NZCTU. Labour’s manifesto and every election since, included a promise to bring in industry standard agreements which eventually became known as Fair Pay Agreements.
Helen’s “Four Square worker in Kaitaia” narrative highlighted how difficult it is for hundreds of thousands of low paid and precarious workers in small workplaces, despite technically having rights in law to collective bargaining under the Employment Relations Act.
“She needs to find a union that can represent her, sign the form and hand it to her employer, organise her workmates, hold meetings, collectively bargain (hard in a small shop), campaign and strike if needed, ratify the collective if it is achieved, and maintain organisation in the shop,” said Helen.
Progressing FPAs under a National Government was impossible. National was fixated on 90-day trials, repealing meal breaks, limiting union access, preventing film & video workers from organising, keeping minimum wage increases low, stifling collective bargaining and union organisation.
When Labour finally became government again in 2017, we thought, right, now we can get to work. A Tripartite committee, chaired by Jim Bolger, came up with a sound report on the necessity of FPAs as a crucial step in fairness for workers. Yep, that Jim Bolger, the PM who helped shepherd in the devastating Employment Contracts Act had a rethink.
But legislating for FPA’s was stalled, thanks to Winston Peters who nixed any progress (the Greens were always supportive). Business NZ pulled out of the arrangement despite being part of the tripartite process in a gross show of bad faith. It wasn’t until after 2020 Labour had the numbers to get the legislation through. Once finally legislated in late 2022 after a full parliamentary and select committee process lasting almost a year, Bus Drivers, Cleaners, Security Workers, Early Childhood, Hospitality and Supermarket workers have proceeded with bargaining for an FPA.
Make no mistake ; this is not an easy or resource free process for unions and nor is it compulsory unionism. Unions would still have to recruit every single worker. It’s not a return to the “1970s awards” as some in National/ACT would have it. And nor is it a payoff to Labour’s “Union mates”. The only pay-off the NZ union movement have sought are better rights for those who are excluded. A bit like Australia, who have modern awards that set the base for an industry. You know Australia, where pay is better?
I am dismayed, but not surprised, at the small thinking and lack of imagination by the Business Community, who oppose every, single, advance for workers – those workers they need and cry out for and constantly moan aren’t available. Their solution is to bring in more migrant workers they can and do exploit and to have lower entry employer standards for these workers.
I am not surprised by National/ACT/NZ First. I keep hoping for better, but I’ve learned not to have any expectations. But it says a lot about them that one of their first acts as a new government is to repeal the rights of hundreds of thousands of low-income workers in small workplaces to negotiate minimum pay and standards for their industry – perhaps even training, recruitment, health & safety, portability of entitlements, making their industry more desirable?
It means these workers fall back on the “employer of last resort” ie the government to set minimum wages, leave and rights. We all know how that works out under National led governments. National/ACT/NZ First’s cry is for certainty and flexibility for business. Workers would like some of that too.
We did know this would happen. But to say I am devastated is only the half of it.
Darien Fenton as an MP was Labour’s spokesperson for Workplace Relations & Health & Safety when the policy was developed. She is the former National Secretary of the SFWU, now E Tu, and former Vice President of the NZCTU. She was also President of the Union Affiliates Council of the Labour Party. Since leaving parliament in 2014, she has worked with the NZ Meat Workers Union as Director of Organising, the PSA as a lead organiser and most recently E Tu in a senior industrial role.
If you’d like to read more from Darien you’re most welcome to check out this guest newsletter (no paywall) that she wrote before the election:
Darien suggested this song, can’t think of a better one. I love Billy too.
Thank you for including my bit Nick. Yep, 11 years of work down the drain. As the CTU said "FPAs could revolutionise entire industries, lifting pay, conditions, and access to training. We also believe the new laws will stop the brain drain to places like Australia, which have similar systems to FPAs in place.". I have often thought about the potential for FPAs in horticulture and agriculture ; you know those fruit and vege pickers and farm workers we can't get enough of? A bit of imagination could have done wonders for these industries in attracting and retaining workers, but no, too much burden on the bosses. Or an FPA for low paid aged care and support workers who have had only measly pay increases over the last year. The potential is huge, but no, Tories do what they always do ; take the low road.
Brooke’s comment smacks of the “just following orders” denial of responsibility. Not many voted for ACT’s cruel and unusual policies and right now they seem to be leading the government’s actions.