Labour's flagship industrial relations policy is being criticised for being out of touch with modern ways of working. 

Business New Zealand's refusing to take part in the creation of Fair Pay Agreements, claiming they're unlawful. 

Chief Executive Kirk Hope told Mike Hosking they mean a small employer in Te Awamutu, for example, would be part of a national collective and would have no control over what's bargained. 

And he says a larger company might have different pay levels throughout the country, and would have to set up to 20 pay rates. 

“So, there’s nothing good about the way these things will operate. They’re complex, they’re not going to improve paying conditions for workers that’s for sure.” 

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