9. Question No. 9—Workplace Relations and SafetyMARJA LUBECK (Labour) to the Minister for Workplace Relations and SafetyQuestion No. 9—Workplace Relations and Safety9. MARJA LUBECK (Labour) to the Minister for Workplace Relations and Safety: Selamat siang. Terima kasih Mr Speaker. What steps is the Government taking to improve wages and conditions for Kiwi workers?Hon MICHAEL WOOD (Minister for Workplace Relations and Safety): Yesterday the Fair Pay Agreements Bill was passed by the Parliament. Fair pay agreements (FPAs) are about the basic Kiwi value of a fair go and turning the page on the 30-year era of a race to the bottom for many Kiwi workers. The global pandemic of COVID reinforced the basic truth that we rely on the work of many of our low-income workers including cleaners bus drivers and checkout workers. We believe in this Government that we owe it to those people to ensure that they are treated with dignity and respect and are paid a fair day's pay for a fair day's work. I'd like to thank everyone who contributed to the development of the fair pay agreements framework including the Fair Pay Agreement Working Group chaired by the Rt Hon Jim Bolger.Marja Lubeck: How will fair pay agreements work?Hon MICHAEL WOOD: Despite some misinformation that I have heard in various places fair pay agreements are not a one-size-fits-all model. They create a basic minimum floor of pay and conditions across a sector or an occupation similar to the model that operates in Australia which ensures certainty for workers employed in those areas but also ensures that there is protection for good employers in those sectors to not be undermined by others paying less and competing on low pay and conditions which is the race to the bottom that we want to stop. Fair pay agreements do not preclude flexibility or competition by employers above that minimum floor but merely ensure that it doesn't come at the expense of pay conditions and job security for workers.Marja Lubeck: How will fair pay agreements support greater productivity?Hon MICHAEL WOOD: One of the lessons of the past 30 years is that a highly deregulated labour market manifestly failed to deliver on the claims made in the early 1990s that that would deliver higher productivity growth for New Zealand. FPAs will incentivise competition based on the factors that we know contribute to productivity growth like the quality of goods and services innovation and R & D; not the undercutting of pay and conditions for our essential workers. Again we're supporting the overwhelming majority of good employers who do want to see productivity in our country grow and do want to give their employees a fair go at the same time.Hon Kieran McAnulty: Will fair pay agreements see significant improvements in wages and conditions for McDonald's workers in Christchurch?Hon MICHAEL WOOD: McDonald's workers in Christchurch have the great good benefit of being covered by a collective agreement negotiated by the Unite Union which has seen them achieve an increased minimum wage increased minimum break times improved minimum hours and better shift allowances. A fair pay agreement would allow workers more broadly across that sector to access some of those same benefits and I think we'd all agree that's a good thing.Marja Lubeck: Will workers be forced to join unions under this legislation?Hon MICHAEL WOOD: Once again it's important to be very clear and to correct some of the disinformation that's heard in this area. No workers will not be required to join unions under the fair pay agreement legislation nor will the fair pay agreement legislation allow strikes or lockouts and nor does it breach international labour laws. Fair pay agreements are a pragmatic and modern approach to industrial relations which will offer outcomes similar to Australia and deliver good outcomes for both employees and employers. I'm proud that our Labour Government has delivered on this manifesto commitment.Hon Grant Robertson: Returning to the important matter of McDonald's workers in Christchurch can the Minister confirm reports of McDonald's workers on Newshub last night celebrating the passing of the fair pay agreements legislation and was he surprised to see the Leader of the Opposition join them this morning?Hon MICHAEL WOOD: Yes I can confirm that I actually met with a number of McDonald's workers last night who were extremely pleased about the passing of the fair pay agreements legislation. These are workers who do important work within our society. It is only decent and fair that they receive a fair go. We believe that those workers should receive fair pay for their work and we believe that's more important than an $18000 tax cut for the Leader of the Opposition.