FSC has formally approved and published an interpretation of the New Zealand Forest Stewardship Standard that recognises the living wage agreement negotiated between FICA and First Union. The interpretation is effective immediately and can now be applied by FSC auditors.
Until now, uncertainty around FSC requirements meant some auditors interpreted the standard as requiring every worker, including trainees, to be paid the full living wage. This created a major barrier to training, as contractors faced the combined costs of wages, supervision, reduced productivity and formal training programmes. In some cases, contractors chose not to take on trainees at all.
The new interpretation confirms that while workers must generally be paid at least the living wage, a lower wage above the legal minimum wage can apply where it has been agreed through a recognised forest industry wage agreement negotiated between a union and an industry representative body. This means the FICA and First Union agreement can now be recognised during FSC audits.
The next step is ensuring FSC living wage requirements are reflected more consistently in forestry contracts. FICA is working on proposals to improve how living wage increases are incorporated into contractor rates and how compliance can be more easily audited and verified across the supply chain.
FICA would like to acknowledge First Union and FSC Australia and New Zealand for their constructive approach in achieving this important outcome for the forestry sector.
