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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

								
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