‘Fair Pay’ deals will Drive Inflation, Warns Retail NZ

Retail NZ has highlighted what it describes as significant impacts of the government’s proposed Fair Pay Agreement Bill in an appearance before a Parliamentary Select Committee.

According to Retail NZ, the bill will likely result in a price increase, leaving retailers to reduce store hours and replace jobs with automation. Expensive penal rates will likely return as the cost-of-living crisis exacerbates.

“On average, net retail margins are just under 4 percent in our sector.  This means that for every $20 spent, a retailer receives just 80 cents profit,” said Retail NZ in a statement.

Furthermore, 75 percent of New Zealanders are concerned that prices would increase while 63 percent worry that Fair Pay surcharges would be applied. Around 60 percent fear increased freight costs for online shopping.

“Retail NZ is calling on the government to ditch the ‘Fair Pay’ legislation. This legislation must be rejected, based on the majority views of submitters, impact of industries and the views of New Zealanders about the control they want to have on their own employment contracts.”