Under conditions of a rapidly developing global economic crisis, attacks on living standards and escalating class struggles, New Zealand’s Labour-led government has introduced into parliament new industrial legislation designed to boost the trade unions as the policemen of the working class.

So-called “Fair Pay Agreements” (FPAs) framework formed the cornerstone of Labour’s industrial policy during the 2017 election but is only now being brought forward. Labour was hampered during its first term due to opposition from then coalition partner, the right-wing populist NZ First. The bill finally passed its first reading on April 5 with Labour, the Greens and Maori Party in favour, and the opposition National and ACT parties against.

The legislation will establish a tripartite system in which unions, employers and the state will decide what are “fair” minimum pay rates and conditions across an entire occupation or industry.

Labour claims that the FPA system will give power back to workers and improve pay and conditions by preventing employers from competing against each other by lowering wages. In reality, the legislation will establish a corporatist framework of employer-union-government wage setting while further curtailing the right to strike.

The law will entrench low pay across entire industries, enforced by draconian legislation and by the unions. These pro-capitalist organisations, which have worked for decades with business and governments to impose below-inflation...

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