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Code of Good Faith



To the Interim Good Faith Code Committee  on the  Code of Good Faith


This Submission is from the :

Human Resources Institute of New Zealand Inc, 
P.O. Box 11-450, Wellington 6009, NZ 
Phone: 04-499-2966 
Fax: 04-499-2965  
E-mail: [email protected]

We wish to appear before the Committee to speak to our Submission. 
We can be contacted at :

Glenn Harris, National President, HRINZ, 
North Shore City Council, 
Private Bag 93-500
North Shore 1332
Business : 09 486 8637 - daytime
E-mail : [email protected]


This submission is presented by the Human Resources Institute of New Zealand [HRINZ]. HRINZ is the professional organisation for people who are interested or involved in the management and development of human resources. HRINZ represents the interests of individual members who work in private and public sector organisations throughout New Zealand. There are over 1500 members working in such organisations around the country. HRINZ provides its members with education and information services, conferences and seminars, publications, representation at government and official levels, and networking opportunities. HRINZ helps members to develop their professional skills and knowledge as human resources practitioners and key decision makers in their organisations.

HRINZ’ mission is:

  • To encourage and support the development of professional knowledge and competence and high standards of performance amongst our members;
  • To promote understanding of all aspects of human resources management and development, and the contribution they make organisational and individual performance; and
  • To provide an authoritative and influential viewpoint on all matters affecting HRINZ members and the management and development of human resources.

The general approach of HRINZ to the production of a Code of Good Faith is one of identifying issues of implementation. HRINZ members are those who have to implement employment legislation on a day to day basis and this submission seeks to contribute to a Code of Practice that is workable and able to be implemented without the recourse to litigation.

Introductory provisions

1.   Either the employer or union agrees to respond to the other’s reasonable request for a collective bargaining conference. An agenda of issues to be discussed is to be presented with the request. The request should be given with reasonable notice. The bargaining should take place at a reasonable time of the day.

2.   Both parties, will pursue objectives in the agenda of issues that are reasonable and achievable.

3.   Both parties to a collective bargaining conference will be represented by those who have a full mandate from their respective organisations.

4.   The duty to bargain in good faith extends to all those topics that are within the employment environment. Such topics are:

  • remuneration;
  • hours of employment;
  • health and safety issues;
  • other terms and conditions of employment.

This is not an exhaustive list.

5.   The duty of good faith will extend to multi-union bargaining situations.

6.   The duty of good faith will apply as between unions and union members.

The negotiation process

7.   During the negotiation process, the employer shall maintain all employee entitlements at the same level as prior to the agreement to commence collective bargaining negotiations.

8.   In the event of a claim of economic inability to increase wages or provide benefits, asserted by the employer, reasonable proof of this inability shall be furnished to the independent reviewer appointed pursuant to S 34((3)(b).

9.   In communicating with employees, both parties’ representatives will avoid undermining the other party’s position during the bargaining process.


Concluding provisions

10.   In rejecting one party’s proposals, the other party shall posit a counter proposal that will then form the basis of further negotiations.

11.   Once an agreement has been fully negotiated, both parties shall agree to the provisions and sign the agreement [without delay] [within (7)(14) days].

12.  Provided the both parties have negotiated, throughout, in good faith, it is within the contemplation of the parties that an impasse may be reached. In this case, the duty of good faith will, thereafter, cease.

13.  Both parties to collective bargaining negotiations are not compelled to reach agreement, however, this Code contemplates parties approaching negotiations with an open mind and with a sincere effort to reach some common ground of agreement. 

14.  In the event of a failure to reach an agreement, the parties should refer the matter to the Chief Executive for the provision of mediation services pursuant to S 144.