Employment Relations Act 2000

Collective bargaining - Good faith

32: Good faith in bargaining for collective agreement

You could also call this:

“Rules for unions and employers to work together nicely when making agreements about jobs”

When you and your employer are discussing a collective agreement, you both need to act in good faith. This means you must do certain things:

You should try to agree on a plan for how you’ll talk about the agreement. You need to meet with each other to discuss it. You must think about and answer each other’s ideas.

If you get stuck on one thing, you should keep talking about other parts of the agreement. You must respect the people chosen to speak for each side. You shouldn’t try to make deals with anyone else.

You shouldn’t do anything that might make it harder to reach an agreement or that might make the other side look bad. If asked, you need to share information that helps explain your ideas or responses.

You don’t have to keep meeting about ideas that have already been discussed and answered. To decide if you’re acting in good faith, people might look at rules about good behaviour, any agreements you’ve made about how to act, how many of the workers are in the union, and other important facts about your situation.

Your employer can still talk to workers during these discussions, as long as they follow the rules about good faith.

Remember, these are just some of the ways you need to act in good faith. There might be other things you need to do too, as explained in section 4 of this law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM58662.

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31: Object of this Part, or

“This part explains the rules for fair teamwork when workers and bosses make agreements together.”


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33: Duty of good faith requires parties to conclude collective agreement unless genuine reason not to, or

“ Unions and employers must try their best to agree on rules for workers, unless they have a really good reason not to. ”

Part 5 Collective bargaining
Good faith

32Good faith in bargaining for collective agreement

  1. The duty of good faith in section 4 requires a union and an employer bargaining for a collective agreement to do, at least, the following things:

  2. the union and the employer 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 efficient manner; and
    1. the union and the employer must meet each other, from time to time, for the purposes of the bargaining; and
      1. the union and employer must consider and respond to proposals made by each other; and
        1. even though the union and the employer have come to a standstill or reached a deadlock about a matter, they must continue to bargain (including doing the things specified in paragraphs (b) and (c)) about any other matters on which they have not reached agreement; and
            1. the union and the employer—
              1. must recognise the role and authority of any person chosen by each to be its representative or advocate; and
                1. 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 union and employer agree otherwise; and
                  1. must not undermine or do anything that is likely to undermine the bargaining or the authority of the other in the bargaining; and
                  2. the union and employer must provide to each other, on request and in accordance with section 34, information that is reasonably necessary to support or substantiate claims or responses to claims made for the purposes of the bargaining.
                    1. Subsection (1)(b) does not require a union and an employer to continue to meet each other about proposals that have been considered and responded to.

                    2. The matters that are relevant to whether a union and an employer bargaining for a collective agreement are dealing with each other in good faith include—

                    3. the provisions of a code of good faith that are relevant to the circumstances of the union and the employer; and
                      1. the provisions of any agreement about good faith entered into by the union and the employer; and
                        1. the proportion of the employer's employees who are members of the union and to whom the bargaining relates; and
                          1. any other matter considered relevant, including background circumstances and the circumstances of the union and the employer.
                            1. For the purposes of subsection (3)(d), circumstances, in relation to a union and an employer, include—

                            2. the operational environment of the union and the employer; and
                              1. the resources available to the union and the employer.
                                1. This section does not limit the application of the duty of good faith in section 4 in relation to bargaining for a collective agreement.

                                2. To avoid doubt, this section does not prevent an employer from communicating with the employer's employees during collective bargaining (including, without limitation, the employer's proposals for the collective agreement) as long as the communication is consistent with subsection (1)(d) of this section and the duty of good faith in section 4.

                                Notes
                                • Section 32(1)(ca): inserted, on , by section 13 of the Employment Relations Amendment Act 2018 (2018 No 53).
                                • Section 32(1)(ca): repealed, on , by section 8 of the Employment Relations Amendment Act 2014 (2014 No 61).
                                • Section 32(6): added, on , by section 9 of the Employment Relations Amendment Act 2010 (2010 No 125).