29 March 2022
The Fair Pay Agreement Act announced today will drive up consumer costs if implemented.
“Consumers should expect to pay more for goods and services if these so-called ‘Fair Pay’ Agreements are implemented, Retail NZ Chief Executive Greg Harford. “The proposed law is designed to drive up costs of businesses, and cost increases will be likely passed on directly to the consumers. This will simply add a further burden to the inflationary pressures facing the economy.
“The so-called ‘Fair Pay’ agreements are designed to reduce flexibility and, on balance, are likely to lead to reduced opportunities for employees across the retail sector. Reduced store hours are a likely outcome, but these will lead to reduced working opportunities for staff, as well as drive inconvenience for consumers.
“Costs are increasing across the board for the retail sector on multiple fronts, this additional set of legislation is the last thing needed for a sector trying to recover from the impacts of COVID-19.”
“In the 21st century it is simply absurd that the Government thinks that trade unions should lead the setting of wage rates across the entire economy. Not all businesses are the same and, given the huge differences between different firms, it is important for individual employees and employers that they are able to negotiate their own pay structures.”
For further information, please contact:
Retail NZ Chief Executive
027 243 3842
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