The Prime Minister says it's employers driving changes to the collective bargaining system.
Jim Bolger will lead a panel charged with establishing policy that will set minimum pay and conditions for various industries.
Jacinda Ardern told Mike Hosking employers have told her they need this.
"There are employers now who have come to us and told us that we are racing to the bottom, it's not a competitive or fair market for us anymore to contract some of these things, we've gotta do something about it."
LISTEN ABOVE: JACINDA ARDERN SPEAKS TO MIKE HOSKING