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114.709: Managing Employment Relations (ER) : Week Four: Regulation I
114.709: Managing Employment Relations (ER) : Week Four: Regulation I
114.709: Managing
1. international instruments
Employment Relations (ER) 2. legislative and institutional
frameworks
Week Four: Regulation I 3. tripartism and social dialogue
– strong forms:
• (new) economic regional blocs (e.g. EU, NAFTA)
• what has prompted a focus on this?
• EU: integrated markets, including labour markets
– comparative studies of nation states, their economic • harmonisation of employment minima and workplace
performance and institutional characteristics regulation (e.g. EU directives transposed into national
settings e.g. EWCs, information & consultation of
– globalisation employees)
– increased focus on MNEs: NZ and overseas based • less pronounced in Asia and Pacific rim countries
through membership of APEC (Haworth 2003) but
– insights of international business (IB), international emphasis on bilateral arrangements
HRM, cross-cultural management and international
law • nb: why is the above be of relevance when
considering the management of ER in NZ?
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• on international labour standards, the 1998 Declaration
on Fundamental Principles and Rights at Work has
• ILO has a particular policy formulation process that covered the basic positions:
upholds tripartite governance (national governments,
employer organisations and unions as committee – freedom of association and the right to collective
members and involved in its policy-making) bargaining
– elimination of forced and compulsory labour
• gives its Declarations, Conventions and – abolition of child labour
Recommendations more grounding in ILO member
– elimination of discrimination in the workplace
countries
• these fundamental rights are important as they set the
nb: it was the centenary ILO Conference minima for employment standards
earlier this year – check out new declarations,
conventions and recommendations on its • nb: no clear enforcement procedures without the active
website participation of national governments
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Fonterra’s International Framework Agreement
Case study: Fonterra
• Fonterra Cooperative Group Limited – some background
• Fonterra IFA signed on 14 May 2002 by the company, all
– NZ multi-national dairy cooperative owned by 10,500 NZ subsidiaries, IUF and the NZ Dairy Workers’ Union
http://www.iufdocuments.org/www/documents/Fonterra%20agreement-e.pdf
farmers Nb: http://www6.rel-uita.org/companias/nestle/fonterra_y_nestle-eng.htm
– Sectors: dairy and fish
– Industry: manufacturing and retail
– Responsible for 30% of world’s dairy exports
– Revenue exceeding $16.75 billion
– NZ’s largest company
– Size: 15,600 employees
– Subsidiaries include Anchor, Mainland Cheese, Tip Top
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• also aims not to discriminate or take prejudicial action • agreement has also promoted increasing liaison
against any employees for belonging to a union
between unions
• committed to sharing relevant company info. during
collective bargaining, & providing healthy & safe working
conditions
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• various provisions on labour matters contained in the:
• UN General Assembly has adopted legally binding
Conventions on labour matters, including:
– International Covenant on Economic, Social and
Cultural Rights – Convention on the Elimination of All Forms of Racial
Discrimination (1969)
– International Covenant on Civil and Political Rights
– Convention on the Elimination of all Forms of
• both legally binding HR agreements, adopted in 1966 Discrimination against Women (1979) (CEDAW)
and entered into force 10 years later, making many of
the provisions of the Universal Declaration of Human Convention on the Rights of the Child
Rights (UDHR) effectively binding (1989)
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(a) ER Act 2000
The object of this Act is – • ERA and ECA 1991: points of difference
(a) to build productive employment relationships through the promotion of
mutual trust and confidence in all aspects of the employment environment – shift from employment contracts to employment relationships
and of the employment relationship – – introduction of good faith bargaining
(i)by recognising that employment relationships must be built on – promotion of collective bargaining (just tolerated under the ECA
good faith behaviour; and 1991) in line with ILO Conventions 87 and 98 (which were not
(ii)acknowledging and addressing the inherent inequality of observed under the ECA)
bargaining power in employment relationships; and
(iii) by promoting collective bargaining; and
(iv) by protecting the integrity of individual choice; and • ERA and ECA 1991: similarities
(v)bypromoting mediation as the primary problem-solving – individual choice still promoted
mechanism; and
– similar emphasis on less judicial intervention (cf. IC&A system
(vi) by reducing the need for judicial intervention; and
(b) by recognising that employment relationships must be built to promote ob-
instituted by the ECA 1991)
servance in NZ of the principles underlying ILO Convention 87 on Freedom – nb: ERA object indicates that mediation will be given a more pro-
of Association, and Convention 98 on the Right to Organise and Bargain active role
Collectively.
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(b) Health and Safety in Employment Act 1992 (old H&S statute)
• Dept of Labour administered and enforced the HSE Act
• object was to promote the prevention of harm to all people at work, in most workplaces
and others in, or in the vicinity of, places of work
• applied to all NZ workplaces and places duties on employers, self- • Maritime NZ and Civil Aviation Authority administer and
employed, employees, principals & others who are in a position to enforce the Act in the maritime and aviation sectors. NZ
manage or control hazards Police works with the Dept enforced the Act in relation to
commercial vehicles
• emphasis on the systematic management of H&S at work. It
required employers & others to maintain safe working environments,
& implement sound practice. It recognised that successful H&S • HSE Act was first passed in 1992, but was reviewed and
management is best achieved through good faith co-operation in the amended substantially in 2002; Regulations
place of work and, in particular, through the input of those doing the
work.
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• Health and Safety at Work Act 2015 (current) (c) Holidays Act 1993
• purpose is to promote balance between work and other
• on Monday 4 April 2016, the new Health and Safety at Work aspects of employees’ lives and, to that end, to provide
Act 2015 (HSWA) came into effect – for info., see: employees with minimum entitlements to -
http://www.mbie.govt.nz/info-services/employment-
– (a) annual holidays to provide the opportunity for rest and
skills/workplace-health-and-safety-reform
recreation;
– (b) public holidays for the observance of days of national,
– what does this Act emphasis in terms of rights and responsibilities of religious, or cultural significance;
key ERparties? – (c) sick leave to assist employees who are unable to attend
work because they are sick or injured, or because someone
• the majority of the first phase of regulations to support HSWA who depends on the employee for care is sick or injured; and
have been now been finalised and came into force on 4 April – (d) bereavement leave to assist employees who are unable to
2016, along with theAct attend work because they have suffered a bereavement.
• you might like to visit the WorkSafe website for more info.
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(ii) Key legislative changes • Union access only with employer’s consent
a) 2011 changes to the ER Act 2000 – union reps who want to enter a workplace will need the employer’s
permission to do so. Employers must respond to the request within
• Extension of 90 day trial period to all employers one working day, allowing the union rep to enter or providing written
– trial period was extended from employers with less than 20 employees, to reasons if consent is denied. Limited circumstances where consent
all employers. This means any employer and employee can enter into an can be denied, so employers should tread carefully when
employment agreement which provides for a trial period of 90 days or contemplating denying access.
less. During these 90 days, the employer can dismiss the employee
without risk of a personal grievance for unjustified dismissal.
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• see employment law as becoming more accessible and Check out the MBIE site re. the legislative changes:
affordable in compliance terms http://www.mbie.govt.nz/info-services/employment-
• ‘businesses have said they want less complexity, less skills/legislation-reviews/amendments-to-the-employment-
process and more flexibility in the laws around relations-act-2000
workplaces to help them get more productivity and Essentially, the main changes were:
workplace harmony’
• removal of the 'good faith requirement' that obliges employers to conclude a
• changes reflect a professional approach … are a collective agreement during bargaining
practical and ‘good practice’ approach to ER that should • removal of the employers' obligation to provide rest breaks of a certain length
and at a particular time,
help achieve more productive workplaces
• removal of protections to new workers and workers in sectors that are
- Business NZ Chief Executive, Phil O’Reilly vulnerable to exploitation (such as cleaning and food service),
• allowing of employers to opt out of multi-employerbargaining and reduce the
pay of employees conducting partial strikes.
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Video and exercise
– the recent changes to the ERA 2000 were debated
on 27 July 2015 at a panel forum hosted by the
NZERS and MPOWER (see • Heather Smith ‘90 days’ unfair dismissal story
http://www.massey.ac.nz/massey/learning/colleges http://www.youtube.com/watch?v=P3yTjbkxEdw
/college-business/research/mpower/events.cfm)
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• Act gives exclusive jurisdiction over employment agreements • also, opinions and decisions from quasi-judicial tribunals
& other employment-related matters to the Employment and administrative bodies may influence the law of the
Court (s 187) & Employment Relations Authority (s 161) empt relationship and the workplace (e.g. Human Rights
• while Employment Court decisions can be appealed to the Commission and the Privacy Commissioner which both
Court of Appeal or the Supreme Court on questions of law, have ambiguous roles as advocates of the causes
Employment Court decisions on the construction of embodied in their legislation and investigators of
employment agreements are final complaints; and the Human Rights Review Tribunal for
civil proceedings for breaches of that legislation)
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Employment Court • nb: Court is not superior to the ERA in usual hierarchical way
• deals with applications for hearings of matters previously
• Employment Court has a limited, but exclusive, jurisdiction to
determined by the ERA, actions for penalties for breaches of
hear and determine proceedings base don tort (i.e. a civil
the ER Act 2000, questions of law referred to it by the
wrong for which the law provides a remedy) issued against a
authority, etc. (Rudman 2009:11)
party to a threatened or actual strike or lockout or against any
• Court has exclusive jurisdiction in other ways (e.g. it declares person in respect of picketing related to a strike or lockout.
that no other court has jurisdiction over any matter which is Also has full and exclusive jurisdiction over applications for
within its or the ERA’s exclusive jurisdiction; the personal injunctions relating to strikes and lockouts or picketing
grievance procedure is the only legal process an employee
• Employment Court has considerable operating flexibility. It is
may use to challenge a dismissal or any aspect of it)
bound to consider whether attempts have been made to
• except on grounds of lack of jurisdiction & in circs set out in resolve matters by mediation and must direct that mediation
the Act, Court’s proceedings & decisions can’t be be attempted before it hears any matter unless it believes
challenged/reviewed by any other court (but its decisions may mediation will not be construction, against the public interest
be appealed to the C. of Appeal/Supreme Court on questions or will undermine the proceedings
of law)
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Employment Relations
• ER Act 2000 gives the ERA extensive and exclusive
Authority jurisdiction to make determinations about ER problems
generally (s 161) (Rudman 2009:14-15)
• established by the ER Act 2000 to resolve ER problems by
establishing the facts and making a determination ‘according • ERA does not have the jurisdiction to make determinations
to the substantial merits of the case, without regard to about bargaining matters or to fix new terms and employment
techicalities’ (s 157) conditions (there are some exceptions e.g. when one or more
• nb: an investigative body in a legal system which largely relies parties to CB seek the assistance of the ERA when they are
on adversarial processes, but has the power to make having serious difficulties in concluding a collective
determinations about ER problems. Tribunals have historically employment agreement)
been focused on conciliation and arbitration
• generally, the ERA may interpret an existing term of
• has a chief and at least 2 other members (in practice c. 15
employment but must not create new terms
members) appointed and not required to have any particular
skills or background (in practice: most are experienced in
employment law or ER)
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• note that the ERA and Employment Court are separate • left to the Chief Executive to decide how to provide mediation
and independent tribunals, each having status as a services but the Act gives examples
court. The ERA also has a unique status as an
investigative body. The Act also carefully circumscribes • mediators must be independent of other parties to the
the Employment Court’s powers in relation to the ERA mediation (i.e. not a member of the ERA or Empt Court)
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Dispute resolution services
• confidentiality of the information process with some
exceptions (e.g. confidentiality requirement does not • under the ER Act 2000, the Labour Group Chief
apply where mediation services are provided to help the Executive may provide dispute resolution services to
parties engaged in collective bargaining) parties in work-related relationships that are not
employment relationships
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– but Business NZ and its affiliates report that they advocate – union (and business) reps on the Ministerial EEO Advisory
a mainstreaming approach to all labour market issues via Group (under Labour)
dialogue and activity with other social partners
– lobbying role, formal submissions (e.g. on minimum wage,
parental leave)
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Tripartism, social dialogue and level Conclusions
• e.g. international
International instruments
– government department (esp. DoL), CTU & Business NZ
engagement on ILO issues, providing the former with • various contextual factors encouraging international regulation
information on international labour practices & trade
• International regs can be strong or less formal/institutionalised
agreements with reference to ILO core standards
• key institutions including the ILO and UN. Countries ratify ILO
• e.g. national conventions (specific labour standards). ILO upholds tripartite
– govt depts (e.g. DoL), CTU and Business NZ on initiatives governance
like the WLB Project and the Workplace Productivity
• 1998 Declaration on fundamental rights set employment
Group and the former PaEE Steering Group; DoL tripartite
standards minima; enforcement an issue
Sector Labour Market Development group
• ILO and ILSs impact on NZ employment relations (e.g. ER Act
• e.g. sub-national
2000; tripartite solutions; Fonterra’s IFA)
– Community groups and trusts engage in direct dialogue &
submissions
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