ABSTRACT

Fundamental change aptly describes the shift in the legislative framework of industrial relations in New Zealand. Since 1984 the New Zealand economy had been subject to a ‘deregulation frenzy’ guided by a powerful cadre of New Right bureaucrats within Treasury (Jesson, 1989). Until 1991 the industrial relations system, however, had remained largely unchanged. Certainly the reform that had occurred was not to the extent or pace of reform in the wider economy. In 1991 the industrial relations system abandoned its historical roots of collectivism and state involvement with the implementation of the Employment Contracts Act 1991 (the Act). This legislation was underpinned by a ‘New Right’ ideology, founded on neo-classical economics, and involved a radical redefinition of the state’s role.