Banking and HRM Pragmatism: the Case of Collective Bargaining in New Zealand

Abstract

This paper analyses, as part of long-term research, changes in employment relations in the banking industry. In particular, it focuses on adjustments in the approach of the major retail banks towards collective bargaining and union representation. Since the 1999 general election, employment relations legislative changes have altered, once again, the ‘playing field’ for collective bargaining and have challenged the traditional management style of many employers. The paper outlines how the approach towards collective bargaining and unionism among New Zealand banks has adjusted to this challenge and how interpersonal trust and pragmatism among negotiators have influenced bargaining processes and outcomes. The banks’ employment relations adjustments have highlighted the tension between the banks’ wish to bargain directly with employees (without ‘third party’ interference), and to develop a partnership with the union; a tension that has been played out differently in the various banks.