Any categoricalĬonclusions on the impacts of the ECA and the ERA require a far more carefully specified research design than has been applied Rather the Act has been more influential in redistributingĪvailable paid work, including the redistribution of a greater share of the surplus from labour to capital itself. It is argued here that the impact of the ECA on efficiencyĪnd growth has been extremely modest and that any net improvement in conventional labour market measures has been negligible. Unemployment rates, labour force participation rates, wage levels, labour productivity and on-the-job-training – have provedįar more difficult to tie directly or even indirectly to the ECA. However, outcomes related to the functioning of the labour market as a whole – Stoppages are relatively easy to document. The immediate effects of the legislation on unionisation and levels of work No clear consensus on its labour market impact. The dismantling of centralised regulation of employment relationships in New Zealand. Although it did even out the relative power granted to capital and labour theĮmployment Relations Act (ERA) introduced a decade later preserved the general thrust of the 1991 legislation. The Employment Contracts Act (ECA) in 1991. Market efficiency than a centrally controlled system of employment relations and wage setting. Decentralised decision making, it is argued, will lead to greater
In accord with specific product markets and local conditions. In their relationship with each other, in particular employers should have greater flexibility to affect wages and conditions
© 2015-2022.The neo-classical rationale for deregulation of the labour market argues that capital and labour should have greater choice
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