The Impact of the ECA on Labour Relations in Hotels and Restaurants

Abstract

Since the passage of the Employment Contracts Act in 1991, there has been much debate in New Zealand about prevailing patterns of labour relations. It has been suggested that distinctions can be drawn between those workplaces where the Act has been used to exploit workers in a disadvantaged labour market position, those where the Act has been used to develop more positive relationships, and those where little change has been experienced. The service sector in general and the hospitality industry in particular, is often used as an example of the first of these three strategies but usually first on the basis of anecdotal evidence. This paper looks more widely at the question of labour relations practices, reporting survey evidence from 1100 workplaces in the "Accommodation Cafes and Restaurants" industrial sector in New Zealand, followed up by interviews with managers in the industry. It focuses on the nature of employment contracts, wage determination, and representation in the industry. It concludes that the prevailing pattern of labour relations should be characterised not as exploitative, but rather as a form of benevolent paternalism. It also concludes that there is little evidence to support the contention that the ECA has resulted in an increased amount of real negotiation in the industry.