"Trailing behind the field": a reform proposal for employee participation in New Zealand

Abstract

This dissertation is concerned with employee representation and participation in New Zealand's employment relations. Currently there is an inherent inequality of power in employment relationships which affects the work and the lives of New Zealanders. In contrast to Europe where most jurisdictions provide employees with statutory rights to exercise influence over the governance of their workplace. New Zealand governments are generally and almost solely focused on trade union representation as the main voice channel for employees. Although current legislation aims to promote trade union representation, statistics illustrate that this voice channel remains marginal to the vast majority of employees. In view of this and in the preponderant absence of other formal avenues for employee participation, employees have no genuine voice channel. By placing emphasis on the importance of employee participation the author claims that the involvement of employees in the governance of their workplace is not only desirable but necessary in an industrialised democracy. This dissertation provides a comprehensive portrayal of the current forms of employee involvement in workplace governance in New Zealand and argues that the limitations to them are significant. Neither trade unions - through collective bargaining - nor the good faith obligations under the Employment Relations Act 2000 can sufficiently balance the inherent inequality of power in employment relationships. The claim of trade unions to be the only potent representative of employees' rights and interests may be placed but lacks justification in view of the continuous low membership density. Also the increased trend of non-union and non-statutory forms of employee participation does not provide employees with sufficient influence in work-related management decisions as their voluntary approach to employee participation faces significant restrictions. Only the model of employee participation as being present under the Health and Safety in Employment Act 1992 may be said to meet social democratic and human needs of employees but is limited to matters affecting the employees' health only. Against this background, the author expresses the view that reform is necessary, and that effective reform does not lie with the current conceptions of merely trade union representation or voluntary (joint) consultative committees. Hence, the author suggests a legislative reform and provides specific considerations on such reform within the New Zealand context encompassed within a legislative proposal that allows employees to exercise influence in the governance of their workplace.