Diverging Paths? Employment Relations in New Zealand and Denmark in the 1990's

Abstract

This paper discusses two interlinked topics: the shifts in the employment relations system and the role of unions in the two countries. An initial impression is that there is a growing divergence between the employment relations systems in the two countries over the last fifteen years. The implementation of free-market policies in New Zealand can be contrasted with a more mixed philosophical basis of the Danish reforms. However, the paper tries to demonstrate through an analysis of key employment relations regulations that a more complex pattern of divergence and convergence exists. When it comes to the role of unions, the paper presents a clear-cut divergence pattern. This raises two questions. Why have the Danish unions avoided the widespread decline in unionism? Why has the decline in union presence been so marked in New Zealand, and will the unions rebound from this decline?

Supportive Legislation, Unsupportive Employers and Collective Bargaining in New Zealand

“…Both collective bargaining coverage and union density have continued to decline under the ERA (see Tables 1 and 2) and it has naturally been questioned what the reasons are for the Act's failure to reverse this trend. So far research has focused on whether the legislation itself is at fault, the role played by unions and employee attitudes to collective bargaining (see Rasmussen, 2009). There has been much less focus on employer behaviour and perceptions, the main exception has been a rather narrow debate on employer's role in the "passing on" of collectively agreed terms and conditions to non-union employees (Waldegrave, Anderson and Wong, 2003).…”

“…These included an emphasis on bipartite and tripartite policy formulations and implementation, workplace partnerships, increased investments in industry training and a considerable expansion of statutory employment minima. The Employment Relations Act 2000 (ERA) and its amendments promoted explicitly collective bargaining and made numerous changes to facilitate union membership growth (Rasmussen, 2009). Union registration was re-introduced, collective agreements could only be negotiated by unions, the ability to strike in connection with multi-employer bargaining was re-introduced, "passing on" of union-negotiated improvements ("free-riding") was constrained, unions' workplace access was improved and bargaining behaviour was influenced by the legal requirement to bargain in "good faith."…”

New Zealand som model? - et eksempel på liberalismens konsekvenser for fagforeningerne

“…Det var bl.a. disse forhold, som labourregeringernes lovgivning i 1980'-erne søgte at råde bod på (Rasmussen 1998).…”

“…Således faldt lønnen, eller for-blev uaendret i adskillige år inden for mange områder (specielt blandt lavtlønnede), medens den steg markant for de højerelønnede, merbetaling for overarbejde og for arbejde uden for normal arbejdstid (aften-, nat-og week-endarbejde) er blevet mindre almindeligt. Deltidsarbejde, overarbejde, midlertidig ansaettelse og kontraktarbejde (selfemployment) er vokset kraftigt i løbet af 1990erne (Rasmussen 1998). Alt i alt har lovgiverne fået det fleksible arbejdsmarked, som de sigtede mod, med stør-re ulighed mellem de forskellige grupper på arbejdsmarkedet.…”

Too close to servility? Why is hospitality in New Zealand still a ‘Cinderella’ industry?

“…The ideology that drove this political reform process also led to a social movement away from traditional collective traditions to a focus on individual rights and responsibilities (Trotter, 2007). The rejection of full-employment policies during the 1980s and 1990s led to increased unemployment which weakened workers' negotiation power in the labour market, with a final blow coming in the form of the 1991 Employment Contracts Act, which removed exclusive union rights to negotiation in the sector and compulsory membership, thus fatally weakening the ability of the union to effectively represent the interests of employees (Rasmussen, 2009;Williamson, 2017).…”