Business NZ says New Zealand is on a shortlist of countries breaching international law due to the government's Fair Pay Agreements Bill.
Business NZ chief executive Kirk Hope says the bill would compel people to bargain. Photo: RNZ / Supplied
The bill would provide a framework for collective bargaining for fair pay agreements across entire industries, rather than just between unions and employers.
An International Labour Organisation committee will look at the policy next week in Geneva.
Business NZ chief executive Kirk Hope told Morning Report while the case was yet to be heard, "to put it in context, there are over 400 reports which are submitted to the ILO and New Zealand is on the last 22".
He said globally, employer organisations and unions were concerned that fair pay agreements were compelling people to bargain.
"What happens is once 1000 workers or 10 percent of their workforce are signed up, you can trigger a fair pay agreement. At that point, we're compelled to collectively bargain.
"There's nowhere else in the world that compels [bargaining]."
Workplace Relations Minister Michael Wood said the bill would enhance workers' rights.
He told Morning Report the bill would ensure "some of our most poorly paid and vulnerable workers actually get a fairer deal".
"People like our cleaners, our supermarket workers have got us through Covid and have the lowest-paying conditions in New Zealand. It's about them and making sure that they get fair pay conditions in a way that they haven't for 30 years."
The Fair Pay Agreements Bill provides for collective bargaining across entire industries.
"We're proposing to do it by having employees and unions sit down at the table and bargain instead of a tribunal setting those terms and conditions like Australia."
