NZ Employment Relations March
Read on for a summary of ER events.
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2 Mar
More than 3,500 health workers have voted to ratify a new collective agreement with Health New Zealand, concluding an 18-month bargaining process between Health NZ and the PSA. Mental health nurses and assistants will receive a 2.5 percent increase in year one and 2 percent in year two, plus an $800 lump sum. Health NZ also committed to recruiting over 550 new positions this financial year. A separate agreement covering 12,000 allied health workers was ratified the previous week, with a third agreement for policy and specialist workers to follow.
Fred A – Took a while! Overall a very average settlement – however staff shortages was addressed. The next round of bargaining with Health NZ is likely to be difficult!
5 Mar
Around 20 representatives from Unions Bay of Plenty held an hour-long protest near a Tauranga MP office, as part of a nationwide campaign coordinated by the NZ Council of Trade Unions calling for the Pay Equity Amendment Act to be repealed. The 2025 legislation raised the threshold for proving historical undervaluation in pay equity claims, resulting in 33 claims representing thousands of workers being dropped. A Maritime Union local organiser has said the changes were “a terrible indictment” of the Government’s view of women’s work. Workplace Relations The new law was already processing claims and had made the regime simpler and more focused on sex-based discrimination. It is noted the national gender pay gap had fallen to 5.2 percent — a record low.
Fred A – Unions and women around New Zealand will ensure this issue stays in the headline as the country moves toward the 7 November election.
6 Mar
Wellington City Council has released 50 cost-cutting recommendations aimed at reducing a forecast 12.7% rates increase for 2026/27. Proposals include reduced consultant spending and cuts to climate change work. The council has not ruled out staff cuts, following an independent Deloitte review that found the organisation may be overstaffed by up to 330 full-time equivalent roles. The PSA said job cuts would further undermine the city on top of existing central government cuts to Wellington’s public sector.
Fred A – Cost cutting by redundancy is always an emotional issue. The council will need to prioritise what needs to be done to ensure services are maintained for ratepayers.
Additional Reading:
https://www.psa.org.nz/news-media/psa-urges-wellingtons-councillors-to-protect-jobs-and-services
9 Mar
FENZ announced it would begin deducting pay for firefighters participating in partial strike action, including bans on administrative tasks that do not affect emergency response. The NZPFU said the threat of a 10% wage deduction was financially unsustainable for many members and forced the union to withdraw its planned administrative bans, leaving hourly full stoppages as the only viable form of industrial action. Weekly one-hour strikes at midday on Mondays and Fridays have continued. FENZ maintained the deductions were lawful under partial strike legislation and said its current pay offer of 6.2 percent over three years was fair and in line with other public sector settlements. Bargaining has been ongoing since July 2024 with no agreement reached.
Fred A – This ongoing scrap has become emotionally entrenched on both sides. It needs a new approach with new people, “a deal maker/breaker”. Trust seems to have evaporated on both sides.
11 Mar
Heinz Wattie’s has announced plans to close manufacturing facilities in Auckland, Christchurch and Dunedin, and cease frozen packing lines in Hastings, affecting around 350 roles. The closures will end production of frozen vegetables, Gregg’s coffee, and several dip brands. The company said the increasingly difficult manufacturing environment had placed ongoing pressure on its commercial performance. E tū said the impact on workers would be devastating, noting an average length of service of around 30 years among affected staff.
Fred A – A lot has been said and written about this. NZ needs to keep food manufacturing alive. Food security for the cities of NZ depends on local supply. It’s a strategic national necessity and the government should urgently address this. Supermarkets will drive price points down by importing food to ensure profits are maintained. This is killing local growers, manufacturers and businesses.
12 Mar
The Public Service Commissioner announced that school boards could offer pay rises directly to around 10,000 non-union primary teachers via individual employment agreements, including a 2.5 percent rise from 20 March and a further 2.1 percent in January 2027. NZEI filed urgent legal action, describing the move as a deliberate breach of good faith and an attempt to undermine collective bargaining. The CTU said the Commissioner had overstepped the mark by attempting to turn teachers against each other. The Commissioner said the move was lawful and that collective bargaining with NZEI would continue in parallel.
Fred A – The classic case of “what can you do rather than what should you do”. Is it legal? – maybe, but it may also be a breach of good faith. The ERA will look at it. The parties have now elevated this stand off to a higher level. Guaranteed to make future negotiations more confrontational.
14 Mar
Fire and Emergency New Zealand (FENZ) has postponed a decision on cutting 140 roles following pressure from the New Zealand Professional Firefighters Union (NZPFU). The cuts were proposed as part of a restructure of FENZ’s national headquarters. The union said the delay was a positive step but that it remained opposed to the cuts, arguing the reductions would undermine frontline services at a time when the organisation was already in dispute with firefighters over pay and conditions.
Fred A – FENZ & NZPFU igniting another battle. They can’t agree on wages and are now at logger heads over more staff cuts. This sector has dialed up from hot to extremely hot in regard to people issues.
24 Mar
Lincoln University has announced plans to cut 40 full-time equivalent roles, citing reduced government funding and enrolments falling below target. All permanent staff have been offered enhanced voluntary redundancy and early retirement packages, with applications open until 23 April. The university said the move was necessary to maintain financial stability and its focus as a specialist land-based university. The Tertiary Education Union said the announcement came as a shock to staff, who were concerned about increased workloads and the potential loss of specialist academics.
Fred A – The no growth economy continues to wreak havoc in key sectors.
25 Mar
Stats NZ data shows nearly 8,000 construction and manufacturing jobs were lost in the year to February 2026, adding to a sustained decline in those sectors. Economists noted the outlook remained uncertain, with the ongoing conflict in the Middle East adding further pressure to an already weakened labour market.
Fred A – Not only were the jobs lost but business closures stats are at a 10yr high! With the OCR now forecast to move up over the next three quarters, 2026 is looking a like an economic free fall. The RBNZ has revised its annual inflation rate upwards to 4.1%. Wage increases are likely to be well below this rate.
25 Mar
The PSA and E tū have filed an Employment Relations Authority claim against Health New Zealand, arguing the current mileage reimbursement rate of 63.5 cents per kilometre effectively requires home support workers to spend their own wages on fuel and vehicle costs to do their jobs — in breach of the Wages Protection Act. The claim covers around 23,000 workers whose rate had not been reviewed since 2022. Health New Zealand said it was aware of the claim and would respond through the appropriate legal process.
Fred A – The effects of the US & Israel oil wars has and will, further impact every houshold in NZ. Some feel it more than others , like the care workers who are required to use their own vehicle for the job.
26 Mar
FIRST Union has called on major New Zealand banks to maintain flexible working arrangements after several began requiring staff to return to the office more frequently. The union said the move would disproportionately impact women and caregivers, and that working from home had become an important condition of employment. The banks said the return-to-office requirements were aimed at improving collaboration and productivity.
Fred A – working from home flexibility issue is very much in the spotlight again. If employers insist on the return to office, then some travel compensation would not be unreasonable given the steep rise in fuel.
27 Mar
A Lower Hutt restaurant has been found guilty in the Wellington District Court on two charges under the Immigration Act 2009 for exploiting two Indian workers on temporary visas. An MBIE and Immigration New Zealand investigation found a consistent pattern of excessive hours, underpayment, and wage deductions, with workers regularly putting in up to nine hours a day, six days a week while being paid for far fewer hours. More than $72,000 in arrears was owed across the two workers. The restaurant, which has interim name suppression, was fined $90,000 and ordered to pay reparations bringing the total ordered to approximately $170,000.
Fred A – the mistreatment of foreign workers in NZ has unfortunately become another area of ongoing concern
30 Mar
Stats NZ data shows New Zealand has 41,465 fewer filled jobs compared with two years ago. Manufacturing has lost 10,000 workers and construction 19,300 since the election. Young people have been particularly hard hit, with 38,900 fewer 15 to 24-year-olds in filled jobs over the same period. Auckland alone has lost 21,000 filled jobs. The CTU said real wages continued to decline as earnings growth had not kept pace with inflation.
Fred A – The economic miracle as promised by the Government in 2023 is unlikely to eventuate for many reasons.
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