Five Million Voices

Should employees placed by a labour hire firm but working under another business's direction be entitled to coverage of that business's collective agreement when doing the same work?

This member's bill would amend the Employment Relations Act so that workers in triangular employment relationships (employed by one company but working under the control or direction of another) can be covered by a collective agreement applying to the work performed for the controlling business. It was defeated at first reading.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued that workers placed by a labour hire firm but doing the same work alongside a business's own staff should be entitled to the same terms and pay covered by an existing collective agreement.
  • Supporters said the bill would stop contract labour being used to undermine wages and prevent triangular arrangements being used to bypass workplace rights.
  • Supporters contended that fairer pay for these workers would reduce reliance on state wage top-ups, welfare, and other social costs.
Why oppose it
  • Opponents argued the bill would change how labour hire firms operate and disproportionately affect small businesses that rely on contractors.
  • Opponents said it would burden seasonal and event-based industries, such as horticulture and concerts, that depend on flexible contract labour.
  • Opponents contended it was a solution looking for a problem, disputing the claim that labour hire workers are generally paid significantly less.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

A member's bill amending the Employment Relations Act 2000 to help workers in "triangular" employment arrangements. A triangular relationship involves three parties: a worker employed by a labour-hire or contracting company who actually works day-to-day under the direction of another business — the "controlling" employer, such as a port or factory. The bill would let such workers, where they do the same work as the controlling employer's own staff, seek the pay and conditions in that employer's collective agreement, so labour-hire employees are not paid less for identical work. It mainly affects labour-hire and contracted workers, unions, and the host businesses that use them.

Origin: a private member's bill carried by Labour MP Helen White (inherited from colleagues), building on earlier triangular-employment law. Argument for: it promotes equal pay for equal work and reduces exploitation of migrant, Māori and Pasifika workers who are over-represented in labour hire. Argument against: it adds complexity to three-party arrangements, could reduce the flexibility seasonal and event work relies on, burden small firms, and is seen by opponents as expanding union coverage.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Employment Relations (Collective Agreements in Triangular Relationships) Amendment Bill · First Reading, 9 Apr 2025
Parliament voted 55–68 — it was voted down.