Hon MICHAEL WOOD: The Fair Pay Agreement Working Group, chaired by the Rt Hon Jim Bolger, identified that sector-based bargaining provides the opportunity for employers to invest and engage without the fear of being undercut by other employers engaged in a race to the bottom on wages. The working group considered that there may be mutual benefits for workers and employers through increased worker engagement, increased productivity, and better workplaces. It doesn't take a giant leap to recognise that a more engaged workforce that values their work and is compensated fairly is likely to be more motivated and productive. We see a good example in Australia, where, with sector-based bargaining there for the past 40 years, they have a rate of labour productivity far higher than New Zealand does currently. 