As 2025 unfolds, collective bargaining in New Zealand is being shaped by economic conditions, legislative changes, and shifting labour market dynamics. The repeal of the Fair Pay Agreements Act, alongside a government keen on tightening fiscal constraints, has created a challenging environment for negotiations. Perspectives from employees, employers and unions illustrate the complexity of these negotiations, with each party facing distinct pressures and priorities. The Employee perspective For employees, the economic outlook is mixed. While unemployment has risen to 5.1%

2025 is shaping up to bring significant changes to employment law to in New Zealand. In this update, we summarise the key changes that employers and employees need to be aware of. Increase to the minimum wage From April 1st, the minimum wage will increase to $23.50 per hour. Employers must ensure that they are paying at least this amount by the specified date to avoid any compliance issues. Employers should check their payroll now to avoid any surprises. Gateway

For employers who are navigating organisational change, a careful consultation process is often the focus. However, there are several employment issues that may come out of a restructuring process which need to be handled with care. Employers looking to hire after restructuring process may have the following questions: Do we have to offer vacant roles to affected employees first? Can we hire externally if affected employees don’t have the skills and attributes for the new role? We want to advertise

This morning, Brooke Van Velden, Minister for Workplace Relations, announced that the proposed amendment to introduce a $180,000 per annum income threshold, above which employees cannot file personal grievances for unjustified dismissal, would be phased in over 12 months. Framed as a way to give employers more flexibility, this change could significantly impact workplace culture and leadership dynamics. Workplace impact One of the most obvious impacts of this change will be on trust and job security for senior employees. People

2024 offered a dynamic and challenging industrial relations environment in Aotearoa, with bargaining processes showcasing the complexities and opportunities of collective agreements. Three60 Consult Founder, Paul Diver, reflects on collective bargaining in New Zealand in 2024.   Over the year, I participated in several significant bargaining processes, each offering unique experiences and insights. Here are three examples: MECAs – Multi-Employer Collective Agreements A Multi-Employer Collective Agreement (MECA) sets the minimum terms and conditions of employment for a specific industry. The

New Zealand’s wage outlook has shifted dramatically as record migration, a cooling economy, and fiscal constraints take centre stage. Workers and employers negotiating wage and pay increases within collective agreements in 2025 face a changed environment, where balancing pay increases with economic realities is tougher than ever. In this article, our team summarise the current trends and their potential impact on pay rates in 2025. — The economy has hit a slow patch New Zealand’s economy is grappling with significant

Senior Associate Maureen Glassey writes about the responsibility of employers to conduct workplace investigations into issues that affect their employees’ wellbeing. Hard on the heels of the COVID-19 pandemic is a widespread malaise which is affecting the New Zealand employment landscape, and one for which so far, there is no 100% effective vaccine. The malady is genuine and the impact on the organisation and its employees real. The symptoms fall under the broad umbrella of “wellbeing issues”. Affected employees may

Many businesses in New Zealand have staff out on the road or in safety-sensitive workplaces on a daily basis. With the Coalition Government’s proposed legislation to allow roadside drug testing, this often complicated issue has become a focal point again after a long period of relative quiet, with potential implications for drug and alcohol policies.   Add to the mix the introduction of the Medicinal Cannabis Scheme in 2020, and drug and alcohol policies are in a changing space. Senior Associate

Working from home – and the extent and ways it might be addressed in employment policies – has become a discussion point recently due to the Coalition Government’s position that working from home is not an entitlement. Senior Associate Raymond Wheeler outlines what employers and employees should be aware of.   The Coalition Government’s position on public sector employees working from home has created considerable conversations, with some agreeing that working in offices increases productivity, promotes collaboration, is better for

The Coalition Government recently announced a proposal to enhance clarity when determining whether someone is a contractor or an employee.  The principle of providing certainty to employers, employees, and independent contractors as to how they are classified and the implications arising from their status is sound. However, what we have seen to date appears too light on detail for such parties to be able to draw firm conclusions and alleviate status anxiety. The proposed “gateway test” has four requirements:  There