Fair Pay Agreements have been passed into law amidst a fiery debate in parliament.

Legislation for the agreements passed its final reading in Parliament last night - making it easier for workers to band together and negotiate better conditions and pay.

The bill has received major opposition from the business sector, with National and ACT vowing to repeal it.

New Zealand Initiative Chair Roger Partridge told Kate Hawkesby that the bill is highly undemocratic.

He says when 10 percent of workers can dictate basic terms for all employees, it removes staff freedom to negotiate their own personal terms.

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