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What Fair Pay Agreements mean for Aotearoa’s workers

18 April, 2023

Interview by Milly Smyth, Adapted by Ashley-Rose Redstone

National Director of Campaigning for E tū union, Annie Newman, says Fair Pay Agreements ensure respect, recognition, and dignity for workers. Photo: Canva.

Listen to the full interview

Last week, more than 1000 cleaners signed a proposed Fair Pay Agreement (FPA) for their occupation.

The Fair Pay Agreements Act 2022, passed in October last year, aims to improve working environments by providing industry-specific minimum employment terms based on the negotiations between employers and employee representatives.

Cleaners are the second profession under the trade union, E tū, to send a FPA to the Ministry of Business, Innovation, and Employment after an agreement for security guards was passed into law last December.

National Director of Campaigning for E tū union, Annie Newman, told Milly Smyth on 95bFM’s The Wire that FPAs allow workers the opportunity to participate in establishing the standards and systems for their profession.

“The fair pay agreement is a sector agreement that ensures respect, recognition, and dignity for workers who have often not received it in the past.”

Newman highlighted that FPAs are not limited to pay and include environmental aspects of the job, such as improved health and safety practices, training, and development opportunities.

For cleaners, the agreement unions are proposing includes regulations surrounding the tools of the trade, like chemicals and electrical equipment.

Newman argued that FPAs create a more resilient workforce and make Aotearoa a better place to live and work.

While each occupation's FPA may vary in its terms, Newman said there is no reason not to employ decent work standards across all industries.

“An economy that flourishes is not a low wage economy, but a good place for New Zealanders to work.”

Newman said the increasing cost of living should encourage urgency in improving working conditions as workers are more vulnerable to poor living standards and poverty. 

“If inflation goes up or down, if there are floods or earthquakes or all the other crises that this country's had to deal with, workers can be assured a living standard that enables them to get by.”

Newman stated that joining a union is a fundamental step towards workers having their rights met.

She argued that unions represent the collective strength of an industry and can offer workers an easier path towards job satisfaction.

Newman said interested employees should research past FPAs and consider the terms and conditions they would like to see in their industry.

“The best thing we can do is to regulate minimum terms, conditions, and law so workers can negotiate with businesses for better improvements.”