Bargaining and the Employment Relations Act 2000

This training module focuses on key areas of the law around bargaining and may be helpful as a starting point for you in preparing your team. You may adapt this for your own purposes building in exercises or additional information as required.

It may also be used in conjunction with the module on Productive bargaining which focuses on the behaviour of parties in and four principles for successful advocacy. This is available through this website.

Bargaining under the ERA

Bargaining

Initiation to bargain

Bargaining process arrangement

The collective agreement/negotiations

Settling the agreement

Resolving problems

Initiation to bargain

This notice must be in writing and sets out intended parties to the collective agreement intended coverage clause (work and/or employees) and

is negotiable

The parties to bargaining may include one or more unions with one or more employers, or one or more employers with one or more unions

Employers must inform workers of any notice to initiate bargaining

Bargaining process arrangement

Parties must endeavour to agree a bargaining process arrangement.

You can include advice as to who will be the representativesthe size and composition of the bargaining teamsthe proposed frequency of meetingsthe venue and who will be liable for costscommunications between the partiesthe provision of information and associated costsmanaging disagreements

What is in a collective agreement?

Collective agreements must be in writing and include

a coverage clause

an employee protection clause (if the business is sold, transferred or contracted out)

a clause covering problem resolution services

a variations clause

time and a half on public holidays, and

an expiry date

Good faith (ERA) means parties must be

active and constructive in establishing and maintaining a productive employment relationship

responsive and communicative

use best endeavours to agree on an effective and efficient bargaining process

meet together, consider, and respond to proposals

conclude a collective agreement unless there is a genuine reason based on reasonable grounds not to

respect the role of representatives by not bargaining directly with those for whom the representative acts

Settlement of agreement

The Union must set a ratification process that determines how agreement will be reached by its members (e.g. 50%+1)

An agreement can only be signed after ratification by members

An agreement has no effect unless it is in writing and signed by the parties

A copy of the whole agreement must be available to employees when they meet to ratify it

The parties must send a copy of the agreement to the Chief Executive of the Department of Labour

Managing problems

Parties may use Department of Labour mediators at any stage to assist

Mediation services must be offered before a strike or lock out in an “essential service”

Facilitation by the Employment Relations Authority may be available if there is serious/sustained bad faith that undermines

bargaining, or bargaining is protracted, or there have been proposed or actual strikes/lock outs

For more details

Department of Labour website www.dol.govt.nz

Department of Labour Contact Centre 0800 20 90 20

An employers’ association, union or employment/legal advocate