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Collective bargaining under the Employment Relations Amendment Act 2014.

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Presentation on theme: "Collective bargaining under the Employment Relations Amendment Act 2014."— Presentation transcript:

1 Collective bargaining under the Employment Relations Amendment Act 2014

2 Rebalancing collective bargaining These changes weaken workers’ bargaining power at each stage of the bargaining process: At initiation (initiation timing, MECA opt out) During negotiations (removal of duty to conclude) Industrial action (notice requirements for all types of action, partial strike deduction, 60 day free hit period) During the currency of agreement (removal of the 30 day rule)

3 A triumph for the workers In one industry anyway. A bonanza for lawyers. Arguments re cross initiation of bargaining Challenges to MECA opt out notices Applications to conclude bargaining Challenges to the validity of notice of industrial action Challenges to pay deductions for partial strikes A raft of new causes of action under Part 6A including challenges to exempt employer status, breaches of implied transfer warranties, and provision of individualised transfer information Information provision where employment is at risk Challenges re pass on and the repeal of the 30 day rule. Meal breaks Flexible work And so on.

4 LESS MORE

5 So what?

6 Union wage differentials Branchflower & Bryson (2004) USA: – In US, 16.5% union wage premium. Fournier & Koske (2012) 6 country comparison: – Six country comparison “the earnings of union members higher and less dispersed than those of other workers.” Rosenberg (2014) New Zealand: – 1992-2012 collectivised wages rose 2.9% per annum versus 2.1% per annum for all wages.

7 Calculated from LCI distribution of increases statistics and VUW Centre for Labour, Employment and Work CEA bargaining statistics

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9 Collective bargaining and inequality Western & Rosenfeld (2011). USA: – Decline of organized labour accounts for fifth to a third of the growth in income inequality. Jaumotte and Osorio Buitron (2015). IMF: – Decline of unionization accounts for half of rise in top 10% income share.

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