Fair Pay Agreement – what you need to know

The New Zealand Fair Pay Agreements (FPA) system has been developed to unite unions and employer associations within the hospitality sector to bargain for minimum employment terms for all covered employees – either in an industry, or an occupation.

MBIE approved the Union’s application on 29 May 2023, to begin Fair Pay Agreement bargaining for the hospitality industry. The next step is where hospitality employers (represented – by the Restaurant Association and other Associations) and hospitality employees (represented by the Union) will begin negotiations on what minimum terms will be included in an FPA.

Action required as of 20 June 2023

Here are your responsibilities as a hospitality business owner in regard to FPA legislation.

The timeline to complete these tasks is between July 11 and 20 2023.  Unite Union have also emailed a notice out to most hospitality businesses outlining the next steps from their side.

Steps:

1. Distribute Union Information to your employees: [Hospo_FPA_employee_Unite_letter].  Please note: This applies to Union and non-union employees.
2. Share the FPA information sheet and contact details document with your employees: [Fair Pay Agreements and Employee Contact Details Document]. If employees do not want their details shared with the Union, they must opt out by completing a portion of the form and returning it to you. This will not exempt them from the FPA. Employees who opt-in should have their details sent to the Union.
3. Send employee details to the Union: You should send this between July 11th and 20th, 2023 as required by the Act. Fair Pay Agreements Act 2022, covered employers are required to send Unite Union the contact details of covered employees in electronic format as soon as practicable, but between 20 and 30 working days after providing the employee statement to covered employees. Contact details can be sent to employers@hospofpa.nz
4. Covered employers are also required to notify other unions if it employs their members. These unions are likely to be E tū (membership@etu.nz) or Raise the Bar Hospo Union (advocacy@raisethebar.net.nz)More information on the FPA process and obligations of covered employers is available at https://hospofpa.nz/employers/
5. More information: MBIE has also produced a detailed explanation of FPA’s that can be downloaded here. An explanation of the types of hospitality employers and occupations covered is available at https://hospofpa.nz/fpa_coverage/ Coverage is fully defined in the Chief Executive’s notice.
6. Further details: The new agreement will have to specify:
   1. minimum wage rates (including overtime rates, penalty rates, and when they apply)
   2. increases to those rates during the agreement (up to 5 years)
   3. standard hours for paid work
   4. training and development
   5. how much leave is available
   6. The bargaining parties will also have to discuss health and safety requirements, flexible working arrangements, and redundancy, but both sides can put forward proposals on other important issues as well – this is your opportunity to really improve the whole industry.

If you want to find out more now, then go online to hospofpa.nz/letsgo or on Facebook at Hospo Fair Pay Agreement.

You can also contact Unite Union by emailing workers@hospofpa.nz or freephone 08002UNITE (0800 286 483).