In terms of section 7 of the Employment Relations Act 2000, employees have the freedom to choose whether or not to form a union or be members of a union for the purpose of advancing their collective employment interests.
The Act further provides that no person may, in relation to employment issues, give any preference or apply any undue influence on another person because of the other person’s membership or non-membership of a union, as the case may be.
In this guide for employers, we discuss the role of unions, their scope, and limitations. Peninsula has worked with thousands of businesses in New Zealand, supporting them with employment relations and workplace health and safety. We provide customised, end-to-end solutions for your HR and H&S needs.
Please note that the information below is general and does not constitute as advice.
What is a union?
Broadly speaking, a union is an organisation that will aim to support employees (known as members) in their workplace by acting on their behalf collectively, and in the case of some employees individually.
Unions will be typically encountered when it comes to bargaining for collective employment agreements. However, employers may also engage with a union when employees seek the union’s help and advice on work-related issues. Members pay union fees in order to benefit from the services of the union.
A union can be formed when 15 people or more register as an incorporated society under the Incorporated Societies Act 1908 and then register as a union with the New Zealand Companies Office.
The key role of unions will primarily be the negotiation of collective employment agreements, but they also advocate more generally on behalf of employees.
Union membership
Employees are free to choose whether or not they join a union. An employer, its managers and supervisors, cannot disadvantage or threaten employees who join a union. Nor can they place pressure on an employee to refrain from joining a union. Employers certainly cannot place duress on an employee to leave their job based on their union membership.
Agreements or contracts that requires an employee to join a union or to refrain from joining a union are not permissible. Employees cannot be treated differently or discriminated against based on their union membership or union activities. For example, an employee’s role as a delegate or participant in a lawful strike cannot be used against them at any stage.
Likewise, just because an employee is not a union member, an agreement cannot give them any preference:
- In obtaining employment or keeping their employment,
- Relating to terms or conditions of employment, benefits, or opportunities for training, promotion or transfer.
Union activities
Employees cannot be unfairly discriminated against because they are involved in union activities. Union activities include:
- Being an officer, management committee member, delegate, representative or official of a union
- Being a collective bargaining negotiator or representative
- Participating in a lawful strike
- Being involved in forming a union
- Submitting a personal grievance
- Being involved in making or supporting a claim for some benefit of an employment agreement
- Applying for or taking employment relations education leave
Union meetings
Each employee is entitled to attend at least two meetings (up to two hours each) every calendar year. If an employee would ordinarily be working during the time a union meeting is held, the employer is required to pay them their ordinary rate. On the other hand, if a meeting is held during business hours, but an employee would not normally be working, then the employer is not required to pay them for attending the meeting.
The union is required to give the employer 14 days’ notice of the union related meeting. The notice must advise the date, time and location of the meeting.
At the conclusion of the meeting, the union must provide the employer with a list of names of the attendees and the duration of the meeting.
Workplace access
A union does not need to seek consent to enter a workplace where there is a collective agreement in force or where a collective agreement is being bargained for. The union may enter for the purposes of supporting their members collective interests in relation to their employment.
The union would however, need to seek consent from the employer to enter a workplace if a collective agreement is not in force. The employer cannot unreasonably deny such request for access and must respond to the union’s request within one working day. If the employer does not respond within two working days of the request for entry, then consent would be considered as having been obtained
A union representative wanting to enter a workplace, must do so in a reasonable manner and time and must comply with all health, safety and security procedures of the workplace.
Collective bargaining
Collective bargaining occurs where a union wishes to bring into force a new collective agreement or re-negotiate the terms of an existing collective agreement.
- Collective bargaining generally occurs every 2-3 years.
- An employer or union can initiate bargaining.
- A union can initiate bargaining 60 days prior to the collective agreement expiring whereas an employer can initiate bargaining 40 days prior to a collective agreement expiring. (These timeframes vary if more than one union or more than one employer is involved).
30 Day rule
New employees that commence employment where there is a collective agreement in force will automatically be employed under the collective agreement for the first 30 days of employment. If the employee does not join the union within the 30 days, then the employer and employee are free to negotiate an individual employment agreement.
Create fair and safe workplaces with Peninsula
You need to know your duties and responsibilities as a business owner and employer in New Zealand. Peninsula has worked with thousands of businesses, guiding them in matters of complex employment relations and health and safety. Our customised services provide advice that will allow you to grow your business and create productive workplaces.
The presence of unions in your workplace can be a challenge to manage properly, but you should always act in good faith. For expert advice you can contact the Peninsula team 24/7.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.