Volume 28 Number 3

October 2003

Transfer of Editorship
We would like to announce that the New Zealand Journal of Industrial Relations is changing editors,
moving location and in keeping with the new millennium, changing its title to the `New Zealand Journalof Employment Relations'.
The new editors are: Dr Erling Rasmussen and Dr Felicity Lamm, Senior Lecturers at the University of
Auckland, and Dr Rupert Tipples, Senior Lecturer at Lincoln University. They have written extensively
on employment relations and their research interests range from future employment in the primary sector
and the psychological contract to occupational health and safety, the impact of the employment
legislation on workers and employment relations in small businesses. They have alsn undertaken researchfor public and private sector organisations in both New Zealand and overseas.
We would alsn like to take this opportunity to thank the editors Alan Geare and Ian McAndrew with theirsupport staff for their excellent stewardship of the Journal and for consistently producing such as
scholarly publication on industrial relations. They have set a high standard that we hope to continue.
Erling Rasmussen, Felicity Lamm and Rupert Tipples

Address for correspondence:
ER Publishing Ltd.
PO Box 147117
Ponsonby
AUCKLAND 1034

John T. Dunlop
1914 - 2003
John T. Dunlop, arguably the most influential industrial relations scholar of the post World War II era,died on October 2nd, aged 89 years.
John Dunlop is probably best known for his 1958 work, Industrial Relations Systems, a classic book,which strongly influenced industrial relations scholars for decades. The work was reprinted in 1970 and
1977, and then again in 1993 a revised edition was re-published by Harvard Business School in its"Classics" series.
During his distinguished academic career, John Dunlop found time to act as President of both theIndustrial Relations Research Association, the International Industrial Relations Association and also towork as a mediator and arbitrator in many industries.
John Dunlop also distinguished himself in public service. He was Secretary of Labour under President
Ford from 1974 - 1975 and in 1994 was Chair of the Commission on the Future of Worker Management
Relations (the "Dunlop Commission").

The editors pay their respects to one of industrial relation's "greats".

Alan Geare
Ian McAndrew

Information Technology Use and
Employment Change in New ZealandIndustries
Chris Hector
University of Waikato

Abstract
The last quarter of the 20th century was marked by rapid uptake of new information and communication
technologies (ICT) with far-reaching effects on workplace organization. These changes have consequenteffects on demand patterns in the labour market, with less educated workers facing declining
opportunities. In this paper, Census of Population data from 1991, 1996 and 2001 are used to investigatechanges in employment demand by education level for full-time workers in 58 industries covering theentire New Zealand economy. To explore the role of technical change, data on industry use of computersfrom the 1996 Input-Output tables are related to the changes in employment levels for workers at
different levels of education. The findings suggest that declining employment opportunities for workers
who only have school level qualifications or less are strongly concentrated amongst the industries withhigher ICT uptake.
Introduction
In the middle years of the 20th century, there was little unemployment in the OECD countries, but
unemployment has risen significantly in New Zealand and in other developed countries in recent years(Martin, 1994; Nickell and Bell, 1995), and particularly afflicts workers at the lower end of the skills
range. This decline in employment opportunities is coincident with the rapid diffusion of computers andother information technologies, so skill-biased technical change is one of the leading explanations for thechanging pattern of employment opportunities (Goldin and Katz, 1998). The possible link between
information and communication technologies (or ICTs) and changing labour market demand poses a
potential problem for public policies that aim to expand the use of ICT in the economy. For example, in
New Zealand, the ICT sector has recently been recognised by the government as one of three priority

sectors, due to its potential to improve productivity across the economy. At the same time, however, thegovernment recognises that:in an information society, there is the potential for an inequitable distribution of ICT which
exacerbates existing social and economic disparities.

Given this potential tradeoff between greater productivity and wider inequality, it is important to identify
the effect of ICTs on the distribution of employment opportunities for the NZ population. This paper
reports on preliminary attempts to examine the link between computer use and employment change
across different industries. Specifically, Census of Population data from 1991, 1996 and 2001 are used toestimate trends in employment change by educational level for full-time workers in 58 industries
covering the entire New Zealand economy. To explore the role of technical change, data on industry useof computers from the 1996 Input-Output tables are related to the changes in employment levels forworkers at different levels of education.

Employee-Centred Human Resource
Management Practices
Fiona Edgar
University of Otago
Abstract
Normative models of HRM advocate the use of employee-centred HRM practices and link the use of
these practices with enhanced employee well-being in the workplace. Employers have embraced thephilosophy of these models. Many employers espouse the view that employees are their 'greatest assets'
and also characterise their HRM practices as being employee-centred.
However, whilst many employers claim to have an employee-centred model of HRM in place, very little
empirical research has been conducted investigating the extent to which this is actually the case.
Similarly, few studies have explored the relationship between the use of this model of HRM andemployee well-being. This study aims to fill these gaps by empirically assessing, firstly, the extent towhich the employee-centred model is used in New Zealand organisations and, secondly, by examining
the relationship between the use of these practices and employee well-being. Employee views about theimportance of different functional areas of HRM are also explored.

This study finds that, of the 40 organisations surveyed, most appear to have moderate amounts of
employee-centred HRM practices in place. Surprisingly, however, it reveals that the number of HRM
practices in place is not related to employee well-being. Two possible explanations are put forward. In
light of this study's finding that employees do not consider all areas of HRM to be equally important, theabsence of this relationship may suggest that not all HRM practices have the potential to equally enhance
employee well-being. An alternative explanation is that employers have simply failed to effectively
operationalise their HRM practices.
Theory - Models of HRM practice
The literature on Human Resource Management (HRM) suggests that HRM practices can be grouped
according to one of two approaches - one is organisation-focussed and the other employee-centred.
Although the distinction is not emphasised in the United States literature, the two most widely used andaccepted terms for these models of HRM in the United Kingdom literature are the hard model and thesoft (or employee-centred) model and these are based around opposing "views of human nature" andstrategies for managerial control (Stiles et al, 1997:53).

Some of the main defining differences identified are that hard HRM emphasises financial performance
while soft HRM emphasises the triple bottom line; and hard HRM is utilitarian instrumentalist while soft
HRM is developmental humanist (Storey, 1989; Hendry & Pettigrew, 1986) .
As far as HRM function is concerned the hard version supposedly emphasises a 'managerialist' agenda.
HRM practice is linked to business strategy and is primarily aimed at meeting the interests ofshareholders. This approach sees workers as a key resource to dispassionately exploit in order to gain acompetitive advantage. On the other hand, the soft version, while acknowledging the importance ofshareholders, also takes into account the interests of other stakeholders. The view that "people have aright to proper treatment as dignified human beings while at work, and they are only effective as
employees when their job-related personal needs are met", Legge (1989:26) suggests is "identical to thevalues underlying all the soft version HRM models". The soft model therefore views employees as ends
in themselves, rather than objects, and through using HRM to foster employee motivation, commitment
and development, organisational goals can be achieved, but more importantly, employee well-being isenhanced (Legge, 1989, Guest, 1989).
The characteristics of the employee-centred model are similar to those that underpin best practice HRM.
Both advocate the use of activities that meet the interests of employers as well as those of employees.
Johnson (2000:69-70) describes best practice as "HR methods and systems that have universal, additive,
and positive effects on organisational performance … including profitability, shareholder return, stock
prices, and organisational survival". He suggests the underlying guiding principle of best practice is thevaluing and rewarding of employee performance. This is achieved through empowering and developing
the employee. Thus, activities that are designed to achieve these dual objectives are often considered toconstitute best practice HRM.

Notwithstanding the literary distinctions that are made between hard and soft approaches to HRM, it isacknowledged that employers are likely to have included elements of both models in their HRM practice.
This is because, invariably, the overriding objective of HRM is nearly always to improve bottom-line
performance and this can be achieved by adopting a hard model of HRM practice. However, at therhetorical level, research finds that organisations nonetheless tend to embrace the philosophy ofdevelopmental humanism and purport to use a soft approach to HRM (Guest, 1999).
Despite findings that suggest that there is an abundance of employer support for the use of employeecentred models of HRM this support is, however, often not so evident in practice. Grame, Staines & Paite(1998) find that while support for individual development, which is an aim of soft HRM, is frequently
reflected in employer viewpport is, policies and practices supporting this are rarely evidenced inpractice.

Take This and be Thankful: The 2002
New Zealand Cricket Pay Dispute
Braham Dabscheck
University of New South Wales

Abstract
The commencement of the 2002/03 New Zealand cricket season was delayed by a six week dispute
between the Cricket Players' Association and New Zealand Cricket over player payments. The
Association is one of a large number of relatively small unions which have come into being since thepassage of the Employment Relations Act 2000. The Act encourages trade unions and good faithbargaining to address inherent inequalities of bargaining power in employment relationships. The paper
confirms an implicit proposition by Barry and Reveley (2002) that small unions, under the Act, areessentially impotent. New Zealand Cricket breached the good faith collective bargaining provisions of
the Act. The appointment of Good Faith Bargaining Judicial Officers is offered as a policy
recommendation that might help attain the Act's objectives.
Introduction
The commencement of the 2002/03 New Zealand cricket season was delayed by a six week dispute from 1 October to 11 November 2002 - between the Cricket Players' Association and New ZealandCricket over player payments. The dispute represents another example of the collectivisation of industrial
relations which is occurring in professional team sports (and goes against the blight that has been forced
upon unions, more generally, in recent decades by the combined forces of globalization and neoliberalism). Beginning in the 1960s, player associations were either established or reformed and became
more active and successful in European soccer and major North American professional team sports.
Player associations have become a major feature of Australian sport - operating in Australian rules
football, cricket, soccer, rugby union, rugby league, basketball and netball. In the latter part of the 1990s,
the New Zealand Rugby Union Players' Association was formed.

Policing Industrial Disputation: Lessons
from the Lyttleton Picket Line Tragedy
David Baker
Monash University

Abstract
The sudden and unexpected death of a female picketer at Lyttleton and the two ensuing manslaughter
trials have aroused scrutiny of modern policing methods of controlling industrial disputation. Justice
Panckhurst, in the original trial, directed partial blame for the picketer's death on the peace-keeping andnon-interventionist strategy of the local police and the behaviour of some aggressive male picketers. This
article argues that the Lyttleton tragedy was a "one-off" incident and that a return to traditionally
aggressive, legalistic and confrontational policing of industrial conflict must be avoided. The Lyttleton
case-study has ramifications for future police procedures in controlling industrial disorder.
Picket lines, overt manifestations of industrial conflict, are unpredictable and volatile, even dangerous.
The police, as the coercive arm of the state, are empowered to maintain order in such public ordersituations. This article, which examines the policing practices and tactics employed at the 28-29
December 1999 picket at Lyttleton, asserts that the tragic death of a picketer was a "one-off" incident thatshould not be used to justify a return to aggressive and confrontational policing of industrial disputation.
The unusual and sudden circumstances of Christine Clarke's death at the Lyttleton wharf picket occurred
two days after she was struck and run over by a Toyota Landcruiser driven by Derek Powell, who
subsequently twice stood trial for manslaughter. Clarke was not even a union member; she was apacificist, an advocate of social and community justice, a marcher against the 1981 Springbok Tour. She
was on the picket line by choice to protest the Lyttleton Port Company's (LPC) attempt to use cheap,
contract labour and thereby threaten local jobs. At a micro level, the port dispute was a classic industrial
relations contest between the company's resolve to employ whomsoever it desired against the unions'attempts to safeguard the livelihood of members. The police strategy for the brief duration of the
Lyttleton picketing was to maintain peace and calm until the industrial dispute was settled. Christine
Clarke is the only picketer in Australasian history who has died as a result of a vehicle being driven
through a picket line.

SPECIAL TOPIC: SUSPENSIONS
Natural Justice in Dismissals andSuspensions
Alan Geare
University of Otago

Abstract
The concept of natural justice is defined and its relevance to industrial relations examined. Whilecommon law, regarding natural justice and the dismissal of employees is fairly settled, it is contended
that the common law regarding natural justice and the suspension of employees is fluid and inconsistent.
The paper argues that the more recent decisions on natural justice and suspensions are problematic.
Introduction
The concept of 'natural justice' is important in all branches of administrative law. As Lord Morris ofBorth-y-Gest put it in Wiseman v Borneman [1969] at 278:
… that the conception of natural justice should at all stages guide those who discharge
judicial functions is not merely an acceptable but is an essential part of the philosophy ofthe law.
Natural justice is fundamentally a common law concept. It is imputed whenever statute law is not clear
and explicit enough to render it redundant. Consequently it is rare for explicit reference to natural justice
to be made in statute law, although in recent years this has occurred in New Zealand.

In the general field of industrial relations, natural justice has primarily been considered with respect todismissal of employees. The common law in this area is reasonably well established and understood.
However the applicability of natural justice when employees are not dismissed, but rather suspended
from employment is not nearly so well established or understood. Indeed court decisions have changed
markedly over the years. The paper considers theoretical issues, and a number of relevant cases bothfrom the United Kingdom and New Zealand. The implications of these decisions both on common law
and good management practice are considered.

The Evolving Law of Operational
Suspension
John Hughes
University of Canterbury

Introduction
Suspension from work, when related to disciplinary matters, essentially takes two forms. First, the ability
for the employer to impose a disciplinary penalty by way of a period of unpaid suspension is sometimes
negotiated into what are now employment agreements as a "merciful substitute for … dismissal" (NZ
Labourers etc IUW v Christchurch City Council). Second, and more commonly in terms of the case law,a period of paid or unpaid suspension is often imposed whilst the employer investigates allegations of
misconduct against an employee.
It is this second type of suspension with which this article is concerned, a type of action sometimes
termed "operational" suspension. This is not a term of art, however. In the leading decision Birss v
Secretary for Justice, it was noted that administrative suspension of this type is most often simply a stepin disciplinary action. Further, the Employment Court has held that operational suspension of an overly
lengthy duration can itself become a form of punishment (Frank v Air New Zealand).
A number of recent decisions by the Employment Relations Authority indicate that "operational"
suspension remains a relatively common step in the disciplinary process. The focus for this article will bethose decisions of the Employment Court and the Court of Appeal which establish the relevant principles
for application by the Authority. A survey of the relevant Authority decisions is available elsewhere(Employment Institutions Information Centre, 2003, 11).

Unions and Union Membership in New
Zealand: Annual Review for 2002
Robyn May*, Pat Walsh*, Raymond Harbridge**& Glen Thickett**Victoria University of Wellington**La Trobe University, Melbourne

Introduction
This paper reports the results of Victoria University's Industrial Relations Centre's survey of trade union
membership for 2002 in New Zealand. The survey carries on from our earlier surveys, conducted by theIndustrial Relations Centre since 1991. As with the 2000 and 2001 reports, 2002 also reports an increasein union membership. Union membership for the year to December 2002 rose 1.5 percent, with thenumber of unions rising to 174. Union density has dropped slightly to 21.7 percent due to union
recruitment not matching the strong labour force growth over the year.
Methodology
When the Employment Contracts Act 1991 (ECA) ended the practice of union registration, it not only
removed the distinct legal status of trade unions but it also brought to an end the official collection ofdata on trade union membership. In the absence of official data, the Industrial Relations Centre at
Victoria University of Wellington began to undertake voluntary surveys of trade unions in December
1991, and these surveys continue to the current date. Notwithstanding their voluntary status, the surveys
have always had a high compliance rate. In addition to information on aggregate membership, oursurveys have also sought information on gender and industry breakdown (at two digit industry level) andorganisational affiliations. We have recently included an additional question on whether unions collectstatistics on the ethnic background of their membership.
The Employment Relations Act 2000 (ERA) requires unions to submit an annual return of members to
the Registrar of Unions, stating the number of members as at 1 March of each year. The return to official
collection of data on union membership began in 2001. In 2002 the Department made public themembership of each of the registered unions at 1 March 2002 (DOL 2002)
For our survey this year we included only those unions deemed to be registered as at 31/12/02, as per the
Department of Labour website of registered unions (see www.ers.dol.gov.nz-union-registration). At theend of 2002 registered unions numbered 175. One union, the Medlab Bay of Plenty union subsequently
advised us they had merged with the Northern Chemical workers, reducing the number to 174. In
February, each of the registered unions was sent a survey requesting information on membershipnumbers as at 31 December 2002. Two further follow up mail-outs resulted in a total of 135 returns.
Details on the remaining 39 unions were established by using last year's return verified by the Registrar's
figures, or telephone contact where possible, and any media information (DOL 2002).

CHRONICLE:
June 2003 - September 2003
Erling Rasmussen and Ian McIntosh
A round-up of recent New Zealand industrial relations events.