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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.

You get reassurance that your employment matters are dealt with professionally, so you can go back to doing what you do best.

Help with anything in the employment life cycle from recruitment and employment agreements to disciplinaries and disputes and anything else in between.


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