Tauranga small businesses say they are being bogged down by mounting compliance costs and if the recommendations of the Fair Pay Agreement report is implemented, they'll be hit in the pocket again.

The controversial industrial relations plan supports as few as one in 10 workers having the ability to trigger a nationwide negotiation process, to set a fair pay rate applicable to everyone in a particular sector.

There's concern employers across the country will have to abide by any agreement reached on employment standards above legal minimums, even if they took no part in the process.

Deputy Chair Small Business Tauranga, Tony Snow, says 97 per cent of firms in the country are small businesses.

'That will mean three percent of the business sector will be dictating to the rest of the businesses in the country what pay rate to set for their employees,” says Tony.

'If you've got a hairdressing salon operating straight out of your garage you will have to pay your workers the same as what the national players are doing.

'I don't think that's fair and equitable.”

Tony says this is the tip of the iceberg.

'The Government has more than 150 working groups due to report back this year and what impact those recommendations will have is worrying small businesses.”

He says businesses just want to get on with their job and want Government to make it easier for them to run their business, but mounting compliance costs are dragging them down.

Tony says it's a minefield to navigate and small business want assistance.