FPAs will enable good-faith bargaining to occur at the sector or occupational level, and will establish a minimum floor for conditions in that area. In the same way that the Government establishes a minimum floor like the minimum wage or statutory sick leave, employers and unions will be able to negotiate and agree a bespoke minimum floor relevant to the issues in their sector. By establishing a floor underneath pay and conditions, competition based on low labour costs will be disincentivised. 