NZ Workplace Relations May 2026
Read on for a summary of ER events.
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1 May
The Tertiary Education Union has initiated bargaining for a multi-employer collective agreement covering all polytechnics following the dissolution of Te Pūkenga, the national institute that had previously held a single collective agreement across the sector. The TEU said a unified agreement made sense given the similar nature of work across institutions, and that allowing polytechs to bargain individually would risk pitting staff wages against each other and weakening both workers and institutions. Bargaining was due to begin on 1 May, with the TEU understanding all institutes intended to participate.
Fred A: Makes sense from an admin and wage fairness perspective. It does give the Union more leverage when in bargaining.
Workers First Union used May Day to warn employers against exploiting the fuel crisis stemming from the Middle East conflict to cut jobs and push for lower wages during collective bargaining. The union said employers had been emboldened by the current government and were bargaining with austerity in mind, while workers struggled to meet rising fuel costs just to get to work. The union said the long-term solution to the crisis and New Zealand’s growing worker exodus to Australia was higher wages and better conditions, not austerity.
Fred A: The retail sector would be most impacted. Supermarkets and retail outlets are likely to hike prices for legitimate reasons. The issues revolves around some retailers hiking prices to maintain budgeted for profits – one action by employers could be low wage increases. A warning – employers who plead poverty open themselves up to detailed financial disclosure.
4 May
Around 185 E tū members at the Rio Tinto-owned Tiwai Point aluminium smelter in Southland began the first of four planned one-day strikes on 4 May, with further strikes scheduled for 6, 8 and 10 May. Bargaining for a new collective agreement has been ongoing since 2024 without resolution. E tū said the prolonged failure to settle was a deliberate anti-union tactic, arguing Rio Tinto had no intention of reaching a collective agreement. Rio Tinto said its terms and conditions were competitive and that it would recommence mediation on 20 May.
Fred A: Globally, Rio seems to have a reputation of being tough when in bargaining with unions. The union will need to refute the companies claim that their earnings package is sound. Asking for better wages in a collective forum is standard union practice as is the employers responses. Mediation seems like the logical next step.
6 May
The unemployment rate fell slightly to 5.3 percent in the March 2026 quarter from 5.4 percent in December 2025, with 163,000 people unemployed. However, the data masked deeper labour market pain, with youth unemployment remaining elevated at 24.9 percent for those aged 15-19 and 12.2 percent for those aged 20-24. The proportion of young people aged 15-24 not in employment, education or training rose to 14.4 percent from 13.3 percent, suggesting those leaving school are finding it tougher to find work. Māori unemployment stood at 11.5 percent compared to the national rate of 5.3 percent. Economists cautioned that the full impact of the Middle East fuel crisis was yet to be felt in the labour market.
Fred A: The growth in the youth unemployment is deeply troubling. Can have a huge negative long-term social and societal impact.
7 May
The Association of Salaried Medical Specialists has ratified a pay agreement with Health NZ covering approximately 5,500 senior doctors. The agreement includes a cumulative 5.9 percent pay increase over two years, backdated to January 2026, with 2.9 percent effective immediately and a second increase on 6 July ranging from 2.5 to 4 percent depending on pay scale. The deal also includes two $4,000 lump sums, restoration of personal grievance work rights, and a workforce planning clause. The union said significant challenges remain in the public health system around safe staffing levels.
Two technicians at Kinleith Mill sought ERA intervention over a dispute with employer McKay Limited regarding paid breaks during 12-hour shifts. They claimed entitlement to two paid 30-minute breaks based on an “around the clock” clause in their collective agreement, arguing the unpredictable nature of 24-hour electrical cover work required continuous availability. The ERA ruled that 8am to 8pm shifts are “normal time” and entitled workers to only one paid and one unpaid break. The authority noted workers required to work through breaks must be paid for that time.
8 May
The Employment Relations Authority (ERA) has found that Holcim New Zealand breached its good faith obligations during the sale of the MV Buffalo in 2025. The Authority determined that Holcim failed to properly consult with the Maritime Union of New Zealand and did not provide all relevant information during the restructuring process. The sale of the vessel resulted in approximately 32 seafarers losing their jobs as the company moved freight transport from coastal shipping to road transport.
Fred A: Basic ER error. Proper consultation is required before deciding on restructuring.
11 May
A PSA survey of 7,600 members conducted in March 2026 found that 27 percent of public service workers are thinking about leaving the country for better pay. The figure rises to 49 percent among workers under 25, and 44 percent for those aged 25-34. Health sector and public service department workers were most likely to be considering departure at 29 percent, while Auckland workers showed the highest regional figure at 33 percent. The PSA said the findings represented a loss of skilled workers the country needs for essential services.
Fred A: Interesting – not sure of the figures! However, there should be no debate about the fact that many of these persons would be considering leaving NZ.
14 May
The New Zealand Transport Agency has proposed a restructure affecting transport services, commercial and corporate, and system leadership groups. The proposal would disestablish 140 roles with a net loss of 30 positions. This marks the second major restructure at NZTA in months, following an earlier restructure that affected more than 250 roles in the regulatory group. Nearly one-in-five NZTA workers are now facing employment uncertainty.
Fred A: More cost cutting, more employment uncertainty
15 May
The New Zealand Nurses Organisation has ratified a new collective agreement with Health New Zealand covering approximately 35,000 nurses, healthcare assistants and midwives. The 20-month agreement provides 2.5 percent pay increase in year one and 2 percent in year two. Additional benefits include a $2,000 salary adjustment for Enrolled Nurses at the top step, lump-sum payments of $1,300 for Senior Designated Nurses and $1,000 for other staff, and a $1,000 increase to the Nurse Practitioner Professional Development Allowance. The agreement also includes a Safe Patient Care Statement of Intent committing NZNO and Health New Zealand to work together on staffing models and research nurse-to-patient ratios.
19 May
The Public Service Association (PSA) has criticised the Government’s proposal to reduce the public service workforce by approximately 8,700 jobs by 2029, as part of plans to achieve $2.4 billion in savings. The proposal includes reducing the core public service workforce to around 55,000 employees, merging government departments, and increasing the use of digital tools and artificial intelligence. The Government says the changes will improve efficiency and return public service staffing levels to around 1% of the population.
20 May
E tū has filed a claim with the Employment Relations Authority against Resene, alleging the paint company unlawfully withheld Hurricanes tickets and small performance bonuses from union members during a living wage dispute. The union claims Resene gave Hurricanes tickets only to non-union workers and withheld bonuses from one department in retaliation for strike action. Resene factory workers have been campaigning for a living wage of $28.85 per hour since October 2024, currently earning around $25 per hour. E tū estimates it would cost Resene $200,000 annually to lift members to the living wage. Resene declined to comment beyond stating it has negotiated in good faith.
Fred A: This dispute has been roling for a while. Now the parties are heading to the ERA to try and resolve their wage dispute. Claims of discrimination against union members are circulating. It’s getting personal and messy.
21 May
The International Court of Justice (ICJ) has issued an advisory opinion confirming that the right to strike is protected under international law. The decision followed a long-running dispute over whether strike action is protected under International Labour Organization (ILO) conventions. The ruling is expected to strengthen international recognition of workers’ rights to take industrial action and may influence how labour rights are interpreted by governments, courts and international bodies.
Fred A: This opinion is in line with current NZ legislation
28 May
The Government has announced plans to reduce the public service workforce by approximately 8,700 roles over the next three to five years as part of Budget 2026 reforms aimed at saving $2.4 billion. The reforms include reducing the number of government departments, implementing operating budget cuts across agencies, and increasing the use of artificial intelligence and digital tools to improve efficiency and reduce costs.
The proposals have attracted criticism from opposition parties, unions, and other commentators, who argue the cuts could affect frontline services, including social workers, prison staff, and border workers. Concerns have also been raised about the Government’s reliance on AI to help achieve savings, with critics noting that AI systems involve ongoing licensing, maintenance, cybersecurity, oversight, and upgrade costs that may reduce projected savings. Questions have also been raised about dependence on overseas technology providers and the long-term costs of implementing AI across the public sector.
The Government maintains that the reforms will improve productivity and service delivery while reducing costs across government agencies.
Additional Articles: https://www.rnz.co.nz/news/political/595847/replacing-public-servants-with-ai-could-come-with-hidden-costs-critics-warn
Fred A: Politicians making broad and loose statements about AI replacing workers to save money, is just crazy! Especially with an election around the corner.
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