AIAS Lunch Seminar. Coding New Zealand Collective Agreements. Steve Blumenfeld CENTRE FOR LABOUR, EMPLOYMENT & WORK. Tuesday 29 March 2016

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1 AIAS Lunch Seminar Coding New Zealand Collective Agreements Steve Blumenfeld Tuesday 29 March 2016

2 Data Collection Methods Our analysis focuses on the share of the labour market covered by CEAs effective in the 12 months to June each year. CLEW requests copies of CEAs from all registered NZ unions & (occasionally) employers. Unless we ve been notified that a CEA no longer exists, we carry over terms & conditions (excluding wage changes) in CEAs that are less than 12 months past expiry. We cease compiling data on May 31 st each year. After that date, we typically receive additional CEAs settled in the 12 months prior to that date. Hence, following these seminars, CLEW updates and revises its data accordingly. Because of the impact of collective bargaining reach or influence, most trends we report are representative of both CEAs and IEAs paying at least the statutory minimum wage.

3 Structure of bargaining and administration Collective bargaining coverage Type of agreement Term of agreement Trial and probationary periods Extension of coverage Wages Wage change Minimum adult wage rates Working time Ordinary weekly hours Ordinary days of work Clock hours Overtime Call-back and stand-by clauses Penal rates Shift work Work-life balance and flexible working Leave Annual leave Public holidays Special leave Sick leave Domestic leave Bereavement leave Long service leave Parental leave Eligibility for parental leave Duration of and re-entry after parental leave Parental leave payment provisions Jury service and miscellaneous leave What data are coded? Other conditions Superannuation Redundancy Redundancy notice Redundancy compensation Redundancy compensation for the first year of service Redundancy compensation for subsequent years of service Maximum redundancy compensation Union recognition and consultation Occupational safety and health OSH Code of Practice Employee participation system Health checks, occupational overuse syndrome policy, and protective clothing Drug and alcohol testing Employment relationship problems Employment relationship problem procedures Employment relations structures in the workplace Consultative committees Employment relations education leave Union-related provisions Human rights, equal employment opportunity, and Maori provisions Training and skill development Existence and type of training/skill provision Reimbursement of fees, provision of tuition leave and financial benefits Apprenticeship clauses

4 Description of 2015/16 Sample 1,905 collective employment agreements (CEAs) 1,482 in the private sector 423 in the public sector 31 or 1.6% overall from 2013/14 52 or 3.4% in the private sector 21 or 5.2% in the public sector

5 Description of 2015/16 Sample 1,905 collective employment agreements (CEAs) 1,482 in the private sector 423 in the public sector 328,700 employees covered by CEAs 134,200 in the private sector 194,500 in the public sector 2,700 or 0.8% overall from 2013/14 Total employment in NZ 3.2%

6 Description of 2015/16 Sample 1,905 collective employment agreements (CEAs) 1,482 in the private sector 423 in the public sector 328,700 employees covered by CEAs 134,200 in the private sector 194,500 in the public sector 2,700 or 0.8% overall from 2013/14 9,700 or 6.7% in the private sector 6,900 or 3.7% in the public sector

7 Austria Belgium Sweden France Finland Spain Netherlands Italy Denmark Norway EU Greece Germany OECD Switzerland Portugal Ireland Australia United Kingdom Canada New Zealand Japan United States Coding New Zealand Collective Agreements 13% 17% 16% 33% 32% 40% 45% 44% 48% % 62% 65% 65% 74% Collective bargaining coverage, selected OECD countries, 2010 (or most recent year) 82% 80% 80% 84% 91% 90% 90% 96% 99% Percentage of total labour force covered by collective bargaining, 2010 (or most recent year) Source: J. Visser, Amsterdam Institute for Advanced Labour Studies (2011). ICTWSS Database on Institutions, Coordination, Trade Unions, Wage Setting and Social Pacts (version 3.0).

8 Bargaining coverage by industry group Industry group coverage (000s) and share of total coverage by CEAs (%) EMPLO5YMENT & WORK

9 Bargaining coverage by sector Public Sector = ~3/5 ths of total coverage by CEAs Public Sector = ~1/5 th of NZ workforce % 28.5% Total Coverage (x 1000)

10 Bargaining coverage by sector Public Sector 42% Private Sector 58% Employees Covered Year to March 2000 Employees Covered Year to March 2009 Public Sector 54% Private Sector 46%

11 50% 45% 40% Coding New Zealand Collective Agreements Coverage of Multi employer Collective Employment Contracts and Agreements in New Zealand, Multi employer, no union Multi employer, single union Multi employer, multi union 33% 41% 35% 30% 25% 18% on union negotiated CECs 3% on non union CECs 21% AUS v the Vice-Chancellor of the University of Auckland (Employment Court, Auckland, May 2005) 20% 15% 10% ECA 1991 ERA 2000 There is no greater requirement to agree to a MECA claim than there is to agree to a SECA claim. 5% 0%

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16 Spread of Annualised Wage & Salary Increases, Weighted by Coverage Decrease Nil 0.1 to 1.9% 2 to 2.9% 3 to 3.9% 4 to 4.9% 5 to 9.9% 10% + Jun Jun Jun % <2% Jun Jun Jun Jun Jun Jun % 31 2% Jun Jun Jun Jun % 4%+ Jun Jun Jun Jun Jun

17 Mean lowest adult wage compared with legislated minimum adult wage ( ) 700 Mean minimum adult wage Legislated minimum adult wage $245 $250 $245 $245 $255 $280 $280 $280 $302 $312 $320 $340 $360 $380 $410 $450 $480 $500 $510 $520 $540 $550 $ Average weekly wage (dollars) 2014 Limited increases in Statutory Min Wage during the 1990s Post 1999 General Election increases to the Statutory Min Wage

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20 Spread of weighted annualised wage increases, selected years to June % 50% 40% 30% 20% 10% 0% Nil 0.1 to 1.9% 2 to 2.9% 3 to 3.9% 4 to 4.9% 5 to 9.9% 10%

21 10.0% Coding New Zealand Collective Agreements Annual Percentage Change in Economic and Labour Market Indicators, % 6.0% 4.0% 2.0% 0.0% 2.0% 4.0% Avg CEA Wage (CLEW) LCI Statutory Min Wage GDP CPI

22 Employment Agreements: Bargaining Trends 2014/2015 Annual Leave Entitlement, 1 st Year of Service 7% 18% 20 days days 25+ days 75% Year to June 2015 The Holidays Act 2003 and the Holidays Amendment Act 2004 provide that all employees have a statutory entitlement to a minimum of 4 weeks annual leave after the 1st year of service. This level of entitlement came into effect from 1 April 2007.

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24 Statutory and collectively agreed paid leave, OECD (various years) Sweden (2007) Germany (2007) Denmark (2007) Luxembourg (2007) Italy (2007) New Zealand, incl education (2012) Portugal (2007) France (2007) Finland (2007) Austria (2007) Bulgaria (2007) Netherlands (2007) New Zealand, excl education (2012) Slovak Republic (2007) Norway (2007) Greece (2007) Czech Republic (2007) UK (2007) Estonia (2007) Australia (2011) Romania (2007) New Zealand (March 2007) US (2011) Days per annum Statutory paid public holidays (excl Sundays) Statutory minimum annual leave Average collectively agreed supplement

25 Percentage of total coverage Coding New Zealand Collective Agreements Service for fourth week s annual leave ( ) In 2003/04, 19 out of 20 NZ employees on CEAs had entitlement to a 4th week, but only one-third had this entitlement after only 1 year of service No fourth week After 1 year After 2+ years

26 The Holidays Act 2003 provides that all employees have a statutory entitlement to a minimum of 5 days after each year of service.

27 Under the Holidays Act 2003, unused sick leave is automatically carried over to the next 12-month period. Up to 15 days leave can be carried over, making the total entitlement 20 days.

28 Coding New Zealand Collective Agreements Total Paid and Unpaid Parental Leave Periods in OECD Countries, 2010 FRE = Payment as percentage of average wage earnings. Source: OECD Social Expenditure database

29 Parental leave entitlement The Parental Leave and Employment Protection Amendment Act 2004 entitles all eligible parents to a period of up to 14 weeks paid leave (unlike the previous legislation, which provided only a guarantee of rehiring following the leave period). Year to June 2004 Parental Leave and Employment Protection Act 1987 The payment fully replaces the employee s earnings at the rate of their ordinary weekly pay or average weekly earnings, whichever is greater, up to a maximum before tax payment. Year to June 2010 Parental Leave and Employment Protection (Paid Parental Leave) Amendment Act 2004

30 Parental leave payment provisions by sector, 2013

31 Redundancy Provisions, No provision Notice only provision Pay only provision Pay & notice provision No details or stand alone agreement % 15% 11% 38% 13% % 10% 9% 66% 5% % 10% 10% 66% 5% % 2% 17% 72% 5% % 2% 12% 78% 4% % 2% 12% 80% 3% % 2% 3% 90% 2% % 2% 3% 90% 2% % 2% 3% 90% 2% % 2% 3% 90% 2% Downward trend % 2% 2% 91% 1% % 2% 2% 92% 0% Upward trend

32 Extended leave is leave generally without pay that people can take while protecting their job.

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34 AIAS Lunch Seminar Coding New Zealand Collective Agreements Tuesday 29 March 2016 Steve Blumenfeld