The law prohibits strikes designed to force an employer to become party to a multicompany contract. Police, however, do have freedom of association and the right to organize and to bargain collectively. Issues which cannot be settled between the Police Association and management through negotiation are subject to compulsory, final-offer arbitration. The law provides for the right of workers to organize and bargain collectively, and this is observed in practice in New Zealand and its dependencies. The law prohibits uniformed members of the armed forces from organizing unions and bargaining collectively.
Unions now represent fewer than half of all wage earners.
Under the Employment Contracts Act, employment relationships are based on contracts. Individual employees and employers may choose to conduct negotiations for employment contracts on their own behalf, or they may authorize any other person or organization to do so on their behalf. Although choosing a union is entirely voluntary, unions have remained the most common agent used by workers to negotiate with employers. Employers must recognize a representative authorized by an employee or employees. Neither employers or employees, however, are required to negotiate or to agree to a contract.