3 MAY NEW ZEALAND GAZETTE 1039

Labour

Employment Relations Act 2000

Code of Good Faith for Bargaining for Collective Agreement

The Good Faith Code Committee, appointed under section 36 of the Employment Relations Act, has recently made recommendations to me in relation to the attached Code of Good Faith for Bargaining for Collective Agreement.

The committee had previously recommended the attached Code of Good Faith for Bargaining for Collective Agreement, which came into force on 2 October 2000, following my approval of it by notice in the New Zealand Gazette, as required by section 35 of the Employment Relations Act.

The terms of reference for the committee provided that they should:

• evaluate the code of good faith bargaining, in light of its application over a period of 6 months, and to determine whether the code is being applied effectively; and
• consult interested parties during the evaluation of the operation of the interim code and before any amendments are recommended.

The committee, after extensive evaluation and consultation, recommended to me that it does not consider that any changes to the Code of Good Faith for Bargaining for Collective Agreement are appropriate at this time, and that the Code of Good Faith for Bargaining for Collective Agreement, as Gazetted on 5 October 2000, should continue in force.

I have accepted the committee’s recommendations, with the effect that the attached Code of Good Faith for Bargaining for Collective Agreement remains in force.

Dated at Wellington this 1st day of May 2001.

MARGARET WILSON, Minister of Labour.

Introductory Note:

I have approved this Code of Good Faith for Bargaining for Collective Agreement, under section 35 of the Employment Relations Act 2000.

In accordance with section 39 of the Employment Relations Act, when a code is approved, the Authority or Court may have regard to it in determining whether or not a union and an employer have dealt with each other in good faith in bargaining for a collective agreement.

This means that if the parties can show that they have followed the guidance in the code, the Authority or Court may consider this to be compliance with the provisions of the Act.

The code will also help parties to identify all the things they should be considering when trying to bargain in good faith.

Dated at Wellington this 2nd day of October 2000.

MARGARET WILSON, Minister of Labour.

Code of Good Faith for Bargaining for Collective Agreement

(Section 35 of the Employment Relations Act 2000)

1. Introduction

1.1 The purpose of this generic code is to give guidance to employers and unions in the application of good faith to bargaining for a collective agreement or variation to a collective agreement (“the bargaining”).

1.2 Bargaining for a collective agreement, as defined in the Employment Relations Act, means all the interactions between the relevant employer(s) and union(s) (“the parties”) to the bargaining that relate to the bargaining; and includes negotiations that relate to the bargaining; and communications or correspondence (between or on behalf of the parties before, during, or after negotiations) that relate to the bargaining.

1.3 The parties to the bargaining must deal with each other in good faith and must not, whether directly or indirectly, do anything to mislead or deceive each other; or do anything that is likely to mislead or deceive each other.

1.4 The existence of the Code does not imply that employers in general, or unions in general, act in bad faith in their dealings with each other.

1.5 The good faith matters set out in this code are not exhaustive.

1.6 The parties must recognise the role and authority of any person chosen by each to be its representative or advocate.

1.7 The parties must not (whether directly or indirectly) bargain about matters relating to terms and conditions of employment with persons whom the representative or advocate are acting for, unless the parties agree otherwise.

1.8 The parties must not undermine or do anything that is likely to undermine the bargaining or the authority of the other in the bargaining.

1.9 The parties are encouraged to consider, where appropriate, ways in which good faith relations during bargaining can take into account Maori protocols and practices as well as any cultural differences or protocols that might exist in the environment in which the bargaining applies.

2. Development of an Agreed Bargaining Process

2.1 The parties must use their best endeavours to enter into an arrangement, as soon as possible after the initiation of bargaining, that sets out a process for conducting the bargaining in an effective and an efficient manner.

2.2 The parties should consider the following matters which may, where relevant and practicable, in whole or in part make up any such arrangement;

(a) Advice as to who will be the representative(s) or advocate(s) for the parties in the bargaining process.

(b) Advice as to whom the representative(s) or advocate(s) represent.

(c) The size, composition and representative nature of the negotiating teams and how any changes will be dealt with.

(d) Advice as to the identity of the individuals who comprise the negotiating teams.

(e) The presence, or otherwise, of observers.

(f) Identification of who has authority to enter into an agreement/limits of authority.

(g) The proposed frequency of meetings.

(h) The proposed venue for meetings and who will be liable for any costs incurred.

(i) The proposed timeframe for the bargaining process.

(j) Advice on preferred positions in respect of the type and structure of agreements.

(k) The manner in which proposals will be made and responded to.

(l) The manner in which any areas of agreement are to be recorded.

(m) Advice on ratification and signing-off procedures.

(n) Communication to interested parties during bargaining.