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Building institutions and
supporting dialogue:
New Zealand’s approach to
tripartism and social dialogue
Tripartite Technical Meeting on
Decent Work:
Pacific Island Countries
Nicola Crennan
Carol Beaumont
Paul Mackay
Overview of this presentation
• Introduction to New Zealand’s labour
market
• The role of social dialogue
• Mechanisms and examples of social
dialogue in New Zealand
• Hand over to Business New Zealand and
the NZCTU
Introduction to New Zealand
• Population of 4.2 million
• About 3.2 million in the North Island (1.4
million in Auckland) and about 1 million in the
South Island
• Labour force of 2.2 million people, of which 2.1
million are employed and around 79,000 are
unemployed
• Small, open, market-based economy with
income per capita of about US$25,000
New Zealand’s labour market
• Strong economic and employment
growth
• Low unemployment and high
participation
• Growth has been driven by increased
labour utilisation – leading to a focus
now on improving labour productivity
The Department of Labour’s role
• The Department is leading the
‘Innovative and Productive Workplaces’
theme under the Government’s goal of
economic transformation
• The critical issues under this theme are:
• Innovative and high performing workplaces
• Growing workforce skills
• Maximising participation
Importance of tripartism and social
dialogue
• Recognition of social partners
• Better decision-making processes and outcomes
• Build consensus and commitment
• Transparency in decision-making
• Small country – need cohesion if to be
competitive in global context
• Commitment from Minister of Labour and from
Department of Labour leadership
Scope of social dialogue
Economic Transformation
Innovation – commercialisation of R&D
Employment legislation and policy development
Responsible Contracting
Skills development Productivity
Industry strategies Buy Kiwi Made
Security in Change Decent Work
Quality Flexible Work Work Life Balance
Dealing with Low Pay Export Year
Sector
Snapshot of current engagement with Business and Unions Through intermediary bodies
National Business Organisations To understand existing formal ways in which Government engages with Business and Unions in order to better align/integrate our engagements
and Unions Issue/theme specific
Business New Zealand
NZCTU Through service provision
Decent Work
Steering Group Industry Training Regional
Regional Business Organisations/ Lead: DoL Economic Development Organisations
Associations/Chambers of To provide guidance to Agencies Through advisory/reference
ACC Ministerial (Funded by TEC and Industry) Job Partnerships with Sector Engagements
Commerce the Decent Work: groups
Advisory Group (Use Government funding) To develop and arrange workplace Lead: Govt agency with best
e.g Charting Our Progress To deliver a range of services in their training for industry. They set skill
Industry
Employers and Manufacturers Lead: DoL overview of sector International labour-related
To provide ongoing advice
project which is applying local areas, which are based on the standards, arrange for the delivery of Lead: MSD To help sectors develop a issues
Association (Northern) the ILO’s concept of To maximise the placement
to the responsible minister requirements of the locality, council and training programmes and clear vision of how they might
Employers and Manufacturers ‘decent work’ to New of Work and Income clients
available funding. qualifications, and provide industry improve their sustainable
Association (Central) Zealand Biotechnology and agritech
leadership by identifying skill needs, into sustainable full-time economic growth. Sector
Canterbury Employers' Chamber of Creative industries
developing strategic training plans, employment within sectors
Commerce Small Business engagement is a Information &
and promoting training that meets represented by various management tool for
Otago-Southland Employers' Advisory Group communications technology
industry needs. Industry Associations. facilitating economic
Association Lead: MED Food and beverages
Auckland Chamber of Commerce development, and will inform Wood, building and interiors
To provide ongoing advice to
the Ministerial Group on the development and Specialised manufacturing
Sector/Industry Organisations/ Small Business on any improve the consistency of (including general
Associations government activity engineering and marine)
issues affecting SMEs
e.g. Firms influencing a sector, improve Education
Bus & Coach Assn NZ Inc public and private sector co- Services
Casting Technology of NZ Inc Digital Strategy ordination and assist sectors Maori enterprise
Growth and in transition. Tourism
Early Childhood Council Advisory Group
Fashion Industry of NZ The Advisory Group will
Innovation Advisory
Federated Farmers of NZ advise the Digital Ministers Board Regional Business Organisations/
Hospitality Association of NZ on overall direction, priorities Lead: MED Associations Direct Services/
Independent Tertiary Institutions for future action, areas for To provide independent Regional engagements
perspectives on how the Many central government agencies engage Connections with Firms
Insurance Council of NZ Inc government attention, and
regionally on economic development issues, e.g. NZTE
Master Painters NZ Assn Inc how to engage stakeholders. Government can advance its
National NZTE, DoL, MSD Funding and initiatives to support
Motor Trade Assn (Inc) growth and innovation
Business the development of Business
National Assn of Retail Grocers & programme, to broker links
Organisations Capability
Supermarkets of NZ between Government and
and Unions e.g. BizNZ, Regional Partnership
NZ Fruitgrowers Federation the business sector to
Engagement on international labour- Programme, New Zealand
NZ Meat Industry Assn Inc progress the mutual
Success, Business Clusters,
NZ Seafood Industry Council Ltd development of strategic related issues
Growth Services Fund, Enterprise
NZ Tanners Assn growth initiatives. Industry Associations Tripartite partners engage at regular intervals in
Networks, Enterprise Development
Plastics NZ Unions preparation for International Labour Organisation
Fund, Industry Capability Network
Road Transport Forum NZ meetings and conferences. Business and unions
Health and Safety MSD
Tourism Industry Assn NZ are also consulted about the negotiation and
Services to support employers and
Council implementation of trade labour arrangements.
industry, e.g. employer line,
Sector Unions Lead: DoL
Business Capability recruitment services, training
e.g. (to be appointed in the near support
Association of University Staff (AUS) Partnership future) Firms DoL
Clothing, Laundry and Allied Workers Lead: MED Other thematic engagements Services to support enhancing
Union of Aotearoa (CLAW) To increase understanding of through: workplace and workforce
Engineering, Printing and and demand for high quality
EPOCC (Enhancing Parents' and other Carers' performance, e.g. Immigration
Manufacturing Union (EPMU) services aimed at raising
Choices) - a medium term plan of action that (Employ and Assist initiatives),
Furniture, Manufacturing & capability in the business
uses a network of leaders/opinion formers from occupational health and safety,
Associated Workers Union sector; and to ensure there is
NZ Meat Workers and Related sufficient supply of
EEO Trust business and other social partners employment relations (employment
(Uses Government funding) Upskilling the workforce - developing a agreement builder), small business
Trades Union appropriate and accessible Partnership Resource fundamental strategy will depend on active support (advisors in the field), and
Postal Workers Association capability building services to A not-for-profit organisation
Centre tasked with providing equal business involvement in policy formulation and labour market information services
(Auckland) Inc meet the dynamic needs of Lead: DoL employment opportunties delivery (Job Vacancy Monitoring
Public Service Association (PSA) all New Zealand businesses Established by Government information and tools to Work/Life Balance Project - working with programme)
Service & Food Workers Union to help employers and unions employers and raising employers, project partners, employees and Stats
(SFWU) to build new positive awareness of diversity issues unions, in both the private and public sectors, to Services to assist Business with
workplace relationships. in New Zealand workplaces. develop practical tools to address work-life information, e.g. Business Helper
Workplace An Advisory Board has been balance issues in workplaces. FRST
Productivity established to provide Services to promote the
Reference Group guidance. Skill NZ development and adoption of
Firms
Lead: DoL Lead: TEC advanced technologies by
Micro, Small, Medium, business, e.g. TechNZ
The Workplace Productivity Pay and Employment A tripartite initiative of
Large, Top 20 NZSX Reference Group was Business NZ, the CTU and IRD
established in 2005 following
Equity Unit Government to promote Services to inform Business of tax
Lead: DoL requirements
publication of a government workplace learning.
Oversees the implementation MFE
report which identified a
of the Government's five year Services to promote and support
number of ways industry,
action plan for pay and sustainable business practices
firms, unions and
employment equity. Has ACC
government could help
tripartite steering group. Workplace accident insurance
workplaces lift their
productivity. Members bring
to the table a variety of
practical perspectives about
how New Zealand
businesses can go about
raising their workplace
productivity.
Mechanisms for tripartism and social
dialogue
• No formal processes in legislation
• Relationships
• Meetings
• Participation on reference groups or working
groups
• Consultation on ILO reports and preparation for
ILO meetings
• Sharing information– early involvement in policy
development
Examples of tripartism
• Decent Work Project
• Workplace Productivity
• Social Partnership Forum
1. Decent Work Project
The project involved Business New Zealand, NZCTU
and the Department of Labour working together to:
• Agree about what Decent Work means for New Zealand
• Identify critical factors for achieving Decent Work in New Zealand
• Identifying the activities New Zealand is already doing that
contribute to the goal of Decent Work
• Sharing this information on the web so that people everywhere
can learn more about Decent Work in New Zealand.
The project had the same objective as a Decent Work
Country Programme – realisation of Decent Work –
but was tailored to the needs of New Zealand as a
developed country.
1. Decent Work Project
Lessons learned:
• Decent Work is a universal goal but it is
important for each country to think about what it
means for their local context
• It is important for employers, workers, and the
government to identify shared goals for Decent
Work
• The activities of a broad range of groups (e.g.
unions, business groups, and a wide range of
government agencies) contribute to Decent Work
2. Workplace Productivity Agenda
• Drivers:
• High participation rates but low productivity growth
• Further economic growth will need to come from better use of
existing human resources
• Government, unions and business are working together to
improve workplace productivity
• Workplace Productivity Reference Group
• Established in 2005 to provide advice following the release of
the Workplace Productivity Working Group Report in Dec 2004
• Membership includes business people, unions and business
organisations
3. Social Partnership Forum
• Monthly meetings between leaders of NZCTU,
Business NZ, and Department of Labour
• Purpose:
• Shared, holistic view of labour market priorities
• Guide and optimise social dialogue
• Formalise and streamline social dialogue
• Facilitate links
• Promote implementation of agreed priorities and
initiatives through the constituencies of the members.
NZCTU approach
• We have been building a new social partnership
• Less about formality and structures – more about overlapping
interests on issues – economic growth, workforce development,
decent work, productivity
• Government has to model inclusion
• Social partners need to understand government accountability
and processes
• Focus on issues – not personalities – but build trust
NZCTU approach
• There is room for disagreement – usually around
extent of regulation, degree of government
involvement, perceptions of unintended consequences
• But we have shown an ability to keep talking on areas
of co-operation while maintaining at least clear
communication on points of difference
• When the Employment Relations Act was last
reviewed, NZCTU held direct discussions with
Business NZ on 14 outstanding issues
NZCTU approach
• Key focus for NZCTU is workforce development creating the
workplace of the future
• This requires a much higher level of worker participation
• Our approach is to seek union involvement in national and
industry initiatives, develop an education programme and a
project focus, and build worker participation
• Examples – health and safety, learning reps, workplace
productivity, Maori economic development
NZCTU approach
• Large work programme so capacity implications for
social partners
• Need strategic engagement and good integration
• Networks are vital for implementation
• Must be relevant at an industry and workplace level
Business New Zealand
approach
• We endorse the CTU’s view….. plus
• Tripartism
– Is not about capturing government policy initiatives or
constraining business success
– Is about exploring issues from different perspectives
– Draws on grass roots participation
• The testing of ideas often leads to more robust outcomes
• Tripartite consensus can survive changes of government, thus
promoting stability
Business New Zealand –
Challenges ahead
• Next stage of social partnership in NZ?
• Build more overview and integration
• Maybe a bit more institutional support
• Use networks more to ensure implementation
• Look for new opportunities – e.g. energy conservation,
emissions reduction, manufacturing sector strategies,
deepen public sector initiatives as well as private
Putting it all together
• Our experience in New Zealand is that a
willingness to work together is just the
beginning
• The real test is to get things done
• We’re keen to share our experiences
with you if you want to use a similar
approach
