In New Zealand in the 1990s, labour market decentralization and new employment legislation precipitated a sharp decline in unionism and collective bargaining coverage; trends that continued well into the 2000s even after the introduction of the more supportive Employment Relations Act 2000 (ERA). The ERA prescribed new bargaining rules, which included a good faith obligation, increased union rights and promoted collective bargaining as the key to building productive employment relationships (Anderson, 2004; May and Walsh, 2002). In this respect the ERA provided scope for increased collective bargaining and union renewal (Harbridge and Thickett, 2003; May, 2003a and 2003b; May and Walsh, 2002). Despite these predictions and the ERA's overall intent, the decline in collective bargaining coverage begun in the 1990s has continued unabated in the private sector. It has naturally been questioned why the ERA has not reversed, or at least halted, this downward trend. So far research has focused on the impact of the legislation itself and much less on employer behaviour and perceptions, or on their contribution to these trends. This article addresses the paucity of employer focused research in New Zealand. The research explores views of employers on the benefi ts of collective bargaining, how decisions to engage or not engage in collective bargaining are made and the factors instrumental to them. It is demonstrated that the preferred method of setting pay and conditions continues to be individual bargaining. This is especially so for organizations with less than 50 employees, by far the largest majority of fi rms in New Zealand. Frequently, these smaller organizations see no perceived benefits from collective bargaining. Overall, these fi ndings suggest that despite a decade of supportive legislation there are few signs that the 20 year decline in collective bargaining coverage in New Zealand will be reversed.
PurposeThe purpose of this paper is to determine the attitudes of employers in a de‐regulated institutional industrial relations framework, and whether they are still willing to engage in collective bargaining (CB).Design/methodology/approachA cross‐sectional survey design using a self‐administered postal questionnaire, seeks information on employers' attitudes to a range of issues. Included are employers within all 17 standard industry classifications used by previous New Zealand researchers.FindingsThe paper quite convincingly shows that unless employers are prepared to engage in dialogue with employees or third parties and unless the benefits to be gained from such a dialogue are more widely accepted it is unlikely they will engage in CB. Therefore, involvement would appear to be limited to those areas that do not hinder managerial freedom.Originality/valueThis is one of the first studies in New Zealand of employers' attitudes to CB since the 1990s. The paper provides valuable data for policy makers, unions, employers and employment relations researchers.
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