8. Question No. 8—Workplace Relations and SafetyJAN LOGIE (Green) to the Minister for Workplace Relations and SafetyQuestion No. 8—Workplace Relations and Safety8. JAN LOGIE (Green) to the Minister for Workplace Relations and Safety: Has he seen the findings in the literature review released today by BERL that sector bargaining through fair pay agreements could increase wages for some of the lowest-paid workers in New Zealand while fostering sustainable productivity growth; if so what is his response to those findings?Hon IAIN LEES-GALLOWAY (Minister for Workplace Relations and Safety): Yes both the Business and Economic Research Ltd (BERL) and OECD reports released today say that the reduction in sector and collective bargaining after the Employment Contracts Act of 1991 led to a growing inequality in wages and worsening conditions for hard-working New Zealanders. The research out today also makes it clear that sector and enterprise collective bargaining contributes to better pay and conditions for workers. That's why we're working on fair pay agreements to build a modern economy fit for the 21st century.Jan Logie: Is he concerned that over the past 30 years wages for cleaners security guards and retail workers have stagnated despite significant productivity growth in these sectors?Hon IAIN LEES-GALLOWAY: I am concerned that previous policies to reduce sector-level bargaining have meant some of our hardest-working New Zealanders have not benefited from productivity gains. We are working on fair pay agreements to address this inequity. Sector-level bargaining is proposed by both the OECD and BERL in order to reduce inequality in wages and conditions for working New Zealanders. Jan Logie: Does he agree that Australia's modern award system is delivering a better deal to comparable workers in Australia and does he believe fair pay agreements here could help redress this imbalance?Hon IAIN LEES-GALLOWAY: I am aware that Australia has sector-level bargaining which has helped them maintain higher wages than New Zealand especially for those in lower income roles like the security guards that I spoke with a few weeks ago. They told me how their employers were competing for contracts by keeping their wages low and not providing training or decent health and safety. They work long hours in order to pay the bills and don't get to see enough of their families. This Government is building a sustainable productive and inclusive society that supports everyone so more New Zealanders have decent wages and conditions.Jan Logie: Does the Minister think it fair that workers doing exactly the same commercial cleaning job are paid a different rate depending on whether they're employed directly or employed through a contracting company and how would fair pay agreements help to fix this? Hon IAIN LEES-GALLOWAY: Well everyone deserves a fair day's pay for a hard day's work. Fair pay agreements would set minimum pay and conditions for those doing the same work. What is also unfair is that people working two cleaning jobs and doing well over 40 hours a week can't pay the bills and spend a reasonable amount of time with their children. New Zealanders need good wages decent conditions and the ability to train and learn on the job and that's why this Government is working on fair pay agreements.Jan Logie: Will he commit to implementing the OECD economic survey of New Zealand recommendation to adopt a combined model of sector- and enterprise-level bargaining to promote higher employment and more equal distribution of wages?Hon IAIN LEES-GALLOWAY: The coalition Government is working on a form of sector-level bargaining through fair pay agreements because we want to bring the human face of capitalism to New Zealand. Hon Scott Simpson: Can the Minister tell the House and the country when we can expect to hear the Government's response to the Bolger working group report on fair pay agreements?Hon IAIN LEES-GALLOWAY: As soon as the Government has completed the detailed design work that the working group said was still required. When that design work is done and there are proposals ready to go out for consultation the member will be amongst the first to know.