An offer they can't refuse: the imposition of final offer arbitration in the New Zealand state sector

Abstract

On 10 March 1988, three :months to the day after the introduction of the State Sector Bill, the Government announced a nun1ber of changes to the Bill, arnongst which was the following: A provision will be included in the law that will allow the negotiating parties to a particular document to agree to a compulsory arbitration arrange1nent in return for a "no-strike" commitment from the union. The type of arbitration available will be "final offer" arbitration where the Arbitration Commission must choose between the whole position put forward by one party or the other and cannot go "down the middle" (Goverrunent Press Statement, March 10, 1988). Final offer arbitration (FOA) is a new concept for the New Zealand industrial relations system. It was not canvassed in the Buff Paper. Its potential application in this country has certainly not been the subject of debate amongst industrial relations practitioners. This is typical of the way in which this Bill was processed from its introduction. It bodes ill for the future of such an alien elernent in state sector bargaining.