22 September 2000 Media Statement
Good faith success
The Minister of Labour Margaret Wilson has welcomed the success of the Interim Good Faith Committee in producing an
interim code before the new employment law comes into force.
"The new workplace environment is off to a great start," said Ms Wilson.
"It was originally planned that the new codes be developed in the months after the law comes into effect," said Ms
"But employers in particular argued for a code to be developed in time for October 2.
"Union representatives agreed and the code delivered to me today is the result.
"The next step is for me as Minister of Labour to consider the interim code and decide whether or not to approve it.
This decision will be made in the near future.
"I have not yet had time to read the proposed interim Code with the care required. But on my first reading I believe we
have a robust and useful document which will be of considerable help to employers, managers, employees and unions".
The Minister congratulated the members of the Interim Good Faith Committee and especially its chair, Walter Grills for
their hard work and successful negotiation.
The members of the interim Good Faith Code Committee, in addition to the Chairman, are: Anne Knowles and Murray French
from the Employers Federation, Peter Farrell of the State Services Commission and Paul Goulter, Lynn Middleton and James
Ritchie from the Council of Trade Unions.
A copy of the interim code delivered to the Minister for her consideration is attached
22 September 2000
CODE OF GOOD FAITH
FOR BARGAINING FOR COLLECTIVE AGREEMENT
(S35 Employment Relations Act 2000)
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
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
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
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
(o) The provision of information and costs associated with such provision
(p) Appointment of, and costs associated with, an independent reviewer should the need arise
(q) Any process to apply if there is disagreement or areas of disagreement
(r) Appointment of a mediator should the need arise
(s) In the case of multi-party bargaining, how the employer parties will behave towards one another and how the union
parties will behave towards one another
(t) When the parties consider bargaining is deemed to be completed
3.1 The parties must meet each other, from time to time, for the purposes of bargaining.
3.2 The frequency of meetings should be reasonable and consistent with any agreed bargaining arrangements.
3.3 The meetings will provide an opportunity for the parties to discuss proposals relating to the bargaining, provide
explanations of proposals relating to the bargaining, or where such proposals are opposed, provide explanations which
the relevant party considers support the proposals or opposition to it.
3.4 The parties are not required to continue to meet each other about proposals that have been considered and responded
4.1 To promote orderly collective bargaining, the guidelines set out below should be followed in the course of the
4.2 The parties will adhere to any agreed process for the conduct of the bargaining.
4.3 The parties must consider and respond to proposals made by each other.
4.4 A union and employer must provide to each other, on request, and in a timely manner information in accordance
with sections 32(e) and 34 of the Act that is reasonably necessary to support or substantiate claims or responses to
claims made for the purposes of bargaining.
4.5 The parties will consider the other’s proposals for a reasonable period. Where a proposal is not accepted, the
party not accepting the proposal will offer an explanation for that non-acceptance.
4.6 Where there are areas of disagreement, the parties will work together to identify the barriers to agreement and
will give further consideration to their respective positions in the light of any alternative options put forward.
4.7 The parties should attempt to reach an agreed settlement of any differences arising from the collective
bargaining. To assist this the parties should not behave in ways that undermine the bargaining for the collective
5. Breach of Good Faith Bargaining
5.1 Where a party believes there has been a breach of good faith in relation to collective bargaining the party shall,
wherever practicable, indicate any concerns about perceived breaches of good faith an early stage to enable the other
party to remedy the situation or provide an explanation.