BusinessNZ stands by description of international labour report amid strong criticism

BusinessNZ chief executive Kirk Hope is under fire over the group's handling of a UN report. Photo / Mark Mitchell

BusinessNZ is standing by the substance of its description of an international report that it said implied New Zealand could be in breach of international labour law - but has been criticised for distributing "misinformation".

The business lobby group said on Monday that New Zealand risked being placed on a list of alleged breaches of international labour law if it continues with its proposal for Fair Pay Agreements.

It described the title of the report by the UN International Labour Organisation (ILO) as the 40 "worst case breaches" of international labour treaties.

When questioned later it admitted it had changed the name of the list title from "preliminary" to "worst case".

The actual title of the ILO report is "Preliminary list of cases as submitted by the social partners Committee on the Application of Standards".

"We put the title on the report that was distributed with the media release but we stand by what it means," BusinessNZ chief executive Kirk Hope said today.

He said the key issue is there were 449 alleged breaches globally that were referred to the ILO by member nations in 2022 for consideration by a tripartite panel of business, union and Government representatives.

This group then refined the list down to the 40 most worthy of further examination and action by the ILO, he said.

"That is by definition the 40 worst cases and shows the real global concern about the forced collective bargaining that FPAs represent," Hope said.

CTU President Richard Wagstaff. Photo / Supplied

CTU President Richard Wagstaff described BusinessNZ's treatment of the report as "misinformation".

"As we get closer to Fair Pay Agreements becoming law in New Zealand, the opposition to them is becoming increasingly desperate. The level of misinformation about what a Fair Pay Agreement does, how it works, and who benefits reaches new levels."

Wagstaff said an FPA is an agreement that sets a common floor for terms and conditions in an occupation or an industry and not "collective bargaining" as claimed.

"It operates in much the same way as the minimum wage does now. It doesn't replace your employment agreement. It simply stops the race to bottom which has seen many worker's terms and conditions eroded over years by abusive and exploitative employers."

"Fair Pay Agreements are being discussed at the International Labour Organisation (ILO), but not because they think we have broken any rules. They are being discussed because Business New Zealand has taken a case there. That's it. The ILO has made no findings or drawn any conclusions about FPAs."

And Workplace and safety minister Michael Wood said Fair Pay Agreements would benefit New Zealand's most vulnerable workers, including bus drivers, cleaners and not force entire sectors to the bargaining table.

Wood said the only reason the proposal had come to the attention of the UN's International Labour Organisation was because BusinessNZ had made a formal complaint about the plans focused at supporting low-paid workers.

"What we consistently have unfortunately is misrepresentation about what's happening," Wood said.

Workplace Relations and Safety Minister Michael Wood. / Photo Mark Mitchell

Hope said there were concerns Fair Pay Agreements would essentially force collective bargaining, which would have detrimental effects on the country and its reputation internationally, as well as set a bad example on the global stage.

"It's misleading for the CTU to claim that FPAs are only on this list because Business NZ referred them there and they know that," Hope said.

"If another Government announced their intention to override an ILO convention that protects people's right to freedom of association, the CTU and Labour would rightly be up in arms about it so it's just disingenuous for them to suggest there is nothing to see here as this is exactly what FPAs will do."

Auckland Council wades in

But BusinessNZ is now copping heat from Auckland Council, one of it's largest members.

The council is seeking a "please explain" from the lobby group for its treatment of a UN document, Stuff reports.

North Shore Ward Councillor Chris Darby said he had received confirmation that Mayor Phil Goff and chief executive Jim Stabback were sending a joint letter to BusinessNZ seeking an explanation.

Darby told Stuff it was "pretty outrageous" for BusinessNZ to do what it did and alter the title of the ILO report.