Concerns employers unprepared for Fair Pay Agreement shake-up

Consultation for the Hospitality Fair Pay Agreement (FPA) are well underway, but there are worries that employers are not fully aware of – or are not committed to – the obligations they must meet.

FPAs are designed to standardise working conditions within a sector. In this instance, the Hospitality FPA affects over 140,000 workers and 20,000 employers in restaurants, bars, takeaway shops, hotels, cinemas and casinos.

Under the FPA Bill passed last year, employers are required to advise staff that talks have started and ask if they want their information shared with the unions leading the process.

However, there are fears some business owners may not be aware of their obligations which, if left unmet, could result in a fine of up to $40,000.

Restaurant Association of New Zealand chief executive Marisa Bidois believes some employers may be unaware of the responsibilities that have been set out.

"There are probably businesses still out there who don't belong to an association or are not connected with a reliable info source who maybe don't have that information yet, so it is really important that our hospitality businesses are aware of this and their obligations," she told 1News.

There is also fear some employers are neglecting the rules outright.

Unite Union national secretary John Crocker said the hospitality sector has "great employers" but a "bad reputation" when it comes to breaches.

"We've seen evidence of people pressuring their staff into opting out, which is obviously illegal. It's people's right to participate in this process as a worker," he said.

Employers have six weeks left to make sure employees understand their options before bargaining begins.