Employment Relations Act 2000 — Part 5
Collective bargaining in New Zealand — employer obligations
When a union initiates bargaining, employers have legal obligations to engage in good faith. Here's what collective bargaining involves and what employers must do.
📋 Employment Relations Act 2000, Part 5 — collective bargaining framework
Union rights in the workplace
Employees have the right to join a union
Every employee has the right to join a union, to not join a union, and to not be discriminated against for union membership or activity. Employers cannot:
- Discourage union membership or activity
- Provide incentives to employees not to join a union
- Treat union members less favourably than non-union members
- Refuse to allow union representatives access to the workplace for union business
When bargaining begins
Union initiates by serving a bargaining notice
A union can initiate collective bargaining by serving a bargaining notice on the employer. Once a bargaining notice is served, the employer must:
- Acknowledge the notice within 10 working days
- Attend bargaining sessions
- Bargain in good faith
- Not do anything to undermine the union's authority or the bargaining process
Good faith in collective bargaining
Active and constructive engagement required
Employers must bargain in good faith — this means:
- Meeting at reasonable times and places
- Genuinely considering the union's proposals
- Providing information the union reasonably needs
- Not refusing to bargain without genuine reason
- Not bypassing the union by making direct offers to employees
Collective employment agreements
Covers union members in the bargaining group
A collective employment agreement (CEA) applies to all employees who are union members in the relevant work group. Non-union employees can be employed on terms at least as favourable as the CEA. The CEA must be in writing and signed by both parties.
Union delegate access
Reasonable access must be allowed
Union representatives and delegates must be allowed reasonable access to the workplace to carry out union business — including meeting with members, representing members in disciplinary meetings, and supporting employees. Access can be on reasonable conditions set by the employer (e.g. not during peak hours), but cannot be refused outright.
Source: Employment Relations Act 2000, Part 5. Employment NZ:
employment.govt.nz. This is general information, not legal advice.
Frequently asked questions
Do we have to accept all union proposals?
No. Good faith bargaining doesn't mean you must agree to every union proposal. It means you must genuinely engage, consider proposals seriously, and explain your position honestly. Refusing to move on any issue without reason could be bad faith.
Can we offer non-union employees better terms than the CEA?
No. Non-union employees can be employed on terms at least as favourable as the CEA — but offering them better terms to discourage union membership is unlawful.
What if bargaining breaks down?
Either party can apply to the ERA for assistance, including mediation. If bargaining is genuinely at an impasse, either party can apply for the ERA to recommend or facilitate a resolution.
Can we require employees to bargain individually even if they have a union?
No. Once bargaining has been initiated, you cannot make direct offers to employees that seek to bypass the union bargaining process.