Businesses needed to be vigilant about poor pay practices and the effect of poor practices on workers, Otago-Southland Employers Association chief executive Virginia Nicholls said yesterday.
Mrs Nicholls supported the decision by Parliament this week to defeat the Minimum Wage (Contractor Remuneration) Amendment Bill.
The opposition by businesses to the Bill was not about any reluctance to pay the minimum wage, as business was supportive of appropriate pay and minimum wage regulation.
"The concern was about the fact the proposed legislation would have meant Government effectively setting a minimum rate for contracts for services in order to address concerns about poor remuneration practice."
There were already remedies for exploitation and breach of minimum wage obligations in situations where contractors might be better classified as employees, she said.
The Bill passed its first and second readings, but United Future leader Peter Dunne withdrew his support and it was rejected by 61 votes to 60 at the end of a committee stage debate on Wednesday night.
That meant it would not go on to a third reading, and is off Parliament’s agenda.
Labour MP David Parker drafted the Bill.
