A group of Kiwi unions has written to the European Union accusing the Government of breaching the labour provisions of its new trade deal, and asking the bloc to raise the matter with New Zealand.
The Council of Trade Unions’ letter represents an escalation of its battle against the new Government over its decision to repeal legislation setting out the establishment of “fair pay agreements”, which would have allowed unions to initiate bargaining for collective employment agreements that set minimum pay and conditions across entire industries or occupations.
In a March 1 letter to European Trade Commissioner Valdis Dombrovskis, CTU president Richard Wagstaff said the organisation wanted “to bring to your attention New Zealand’s disregard of its obligations” under the trade deal.
Wagstaff said the Government’s fair pay agreement repeal breached several clauses in the agreement’s trade and sustainable development chapter, such as a requirement that “a party shall not weaken or reduce the levels of protection afforded in its environmental or labour law in order to encourage trade or investment”, and that they should promote “through laws and practices … decent working conditions for all”.
The country had based its international reputation on being a good faith partner in trade agreements and a supporter of the rules-based international order – commitments undermined by the Government’s fair pay agreement repeal.
Though New Zealand had not yet ratified the agreement, it had signed it, which Wagstaff said created “an obligation to refrain in good faith from any acts that would defeat the object and the purpose” of the deal.
“New Zealand’s decision to dispense with a system that would have benefited workers, uplifted wages, and protected vulnerable communities is an unjustifiable departure from the provisions of the NZ–EU FTA, an agreement that explicitly precludes its parties from reducing levels of worker protections for the purpose of encouraging trade and investment.”
Wagstaff asked Dombrovskis to raise the matter formally with the New Zealand Government “at the earliest opportunity”, and again through specialised committees yet to be set up under the agreement.
CTU vice-president Rachel Mackintosh told Newsroom the organisation was worried about crucial aspects of the EU trade deal being undermined before it had even been ratified, and the potential flow-on effect for future agreements.
“The reason they have these chapters on labour standards is to avoid a race to the bottom, so countries aren’t out-trading each other based on lowering wages – that’s not something that’s good for the world, it’s certainly not good for workers here … and that’s the danger if this kind of thing goes unchallenged.”
Mackintosh said the CTU was approaching a number of international trade experts to get their views on whether the repeal amounted to a breach, and its EU counterparts at the European Trade Union Confederation would also be writing a letter to Dombrovskis about the concern.
In a statement, Trade Minister Todd McClay told Newsroom the repeal of the fair pay agreement law did not contravene the terms of the EU trade deal, “as it was legislation that was not going to help New Zealand workers”.
McClay said the Government had reserved the right under the terms of the deal to regulate and pass law, while there were no fair pay agreements actually in place at the time it was signed.
New Zealand was a founding member of the International Labour Organisation “and remains a strong supporter of the Declaration on Fundamental Principles and Rights at Work”, he said.
University of Auckland law professor emeritus Jane Kelsey told Newsroom it was hard to know whether the CTU’s letter would result in any action, given the legal and political complexities of the matter.
There were a range of mechanisms to deal with such complaints, ranging from civil society groups to “name and shame” provisions and, at the most serious end, trade sanctions.
Kelsey said the group’s alleged breaches would be “quite heavily contested” by the Government, and the terminology of some clauses was vague enough that the CTU would face difficulties in proving its case.
The EU had also faced criticism from labour groups for failing to rigorously enforce similar chapters in other trade agreements.
However, with the repeal legislation passed under urgency without any select committee hearings, Kelsey said the EU trade deal’s mechanisms were another avenue for the CTU to make its objections known.
A provision from the trade agreement quoted above (a requirement that “a party shall not weaken or reduce the levels of protection afforded in its environmental or labour law in order to encourage trade or investment”) could also apply to the government’s proposal to extend marine farms occupation of public space for 25 more years. And potentially the proposed fast track consenting legislation.
Once again we are having discussions about fair pay. What a load of crap. Unless you place a value on positive contribution to society, you cannot make decisions on what is fair. Let’s compare the contribution a nurse, fireman, teacher, garbage collectors etc make to society with a bloggers, tv and radio talking heads, cigarette and vape manufacturers and sellers etc. even some highly paid executives who could achieve very little without the contribution of their lowest paid wage earners.
Aren’t fair pay agreements a useful mechanism for putting a value on the positive contribution to society?