Fair Pay Agreement Update

The first union application for a Fair Pay Agreement (FPA) to be negotiated has been approved by the Chief Executive of MBIE. Bus Drivers are the first cab off the rank. Here is a reminder of what this is all about and why it is important for all employers to understand the impact.

• You and your employees cannot opt out (no contracting out).
• If your industry or an occupation in your business is covered by a FPA you are bound by the terms (as a minimum).
• Your employee is required to be covered by the FPA (as a minimum) even if they are not union members.
• The employer must tell their employees if they are covered by the coverage clause, and provide the employee’s details to the union unless the employee specifically elects not to.
• Notification to employees must be individual (e.g email). It cannot be by posting on a staff intranet or noticeboard
• If the union has provided a form of information the employer cannot alter it, but can add to it.
• An employer might or might not be part of the employer bargaining party, but will still be bounds by the terms agreed.
• If 25% or more of a person’s role is covered by the FPA the agreement applies to them.

The FPA as a minimum must include:

• Standard working hours
• Wages, including overtime and penalty rates
• Training and development arrangements
• Leave entitlements

Unions have indicated or have already applied to MBIE for approval to negotiate for a FPA in hospitality, supermarkets and grocery stores, security guards, commercial cleaners and early childhood educators.