Is it lawful to strike if a collective agreement is in force?

There are strict notice requirements for strikes and lockouts designed to allow an opportunity for negotiations and mediation, and to allow for contingency plans to be prepared. A strike or lockout is unlawful if it fails to give the required notice.

Before any strike or lockout action starts, unions and employers must give written notice to:

  • the other party (employers or unions)
  • the Chief Executive of the Ministry of Business, Innovation and Employment.

For both strikes and lockouts, the notice must:

  • be signed by a representative of the employer (for lockouts) or the union (for employees)
  • say how long it is before the strike or lockout starts (ie the period of notice). Note that there are minimum notice periods for some sectors, see below.
  • say the nature of the strike or lockout; including if it will be continuous
  • say where it will happen
  • say the date and time it will start and end (or what event will end it).

Any omission or error (eg typo) about the specified information that is minor and technical in nature will not invalidate the notice. Also, a failure to obtain the signature of a representative of an employee’s union will not invalidate the notice.

What may be minor or technical will be up to Employment Relations Authority to decide on a case by case basis.

The information in the notice must be clear enough so that a reasonable recipient of the notice would be able to make plans to deal with the action without using up the timeframe trying to clarify the information provided. While compliance with notice requirements is expected, the Employment Court may choose to take a practical rather than pedantic approach to interpreting the legality of a strike or lockout notice.

Additional content for strike notices

A strike notice doesn’t need to give the employees’ names if it states that it covers all the employees who are:

  • members of the union that is party to the bargaining
  • covered by the bargaining
  • employed in the relevant part of the workplace or where the relevant work is done.

Additional content for lockout notices

Lockout notices must include the names of the employees to be locked out.

Strike or lockout notices in essential services

Strike and lockout notices are an important part of a strike or lockout in essential services (or certain transport services and schools). They give the parties a chance to reach an agreement to avoid the strike or lockout, and give the other parties a chance to make contingency plans. If the notice rules are followed the strike or lockout will be lawful and can’t be stopped (even by the Employment Court).

Notice of intention to strike or lockout in an essential service must be given:

  • within 28 days before the start of the intended strike or lockout in an essential service if:
    • It will affect the public interest, including public safety or health (the legislation doesn’t define ‘public interest’) and
    • relates to bargaining for a collective agreement which will bind the employees striking or being locked out or
      • the strike or lockout relates to an aspect of a collective agreement that the court has declared there is a right to strike or lockout.
    • and not less than 14 days before the intended strike or lockout if it is an essential service described in Part A of Schedule 1 of the Employment Relations Act 2000; or
  • not less than 3 days’ before the intended strike or lockout if it is an essential service described in Part B of Schedule 1 of the Employment Relations Act 2000.

Essential services include eg:

  • production, processing, and sale or supply of gas, petroleum or electricity
  • hospitals and ambulances
  • water supply to cities and districts
  • sewage disposal
  • port facilities
  • the operation of passenger services.
  • milk and cream production, distribution and sales

See a complete list of essential services.

If there is a strike or lock-out over collective bargaining in an essential service, and the proposed strike will affect the public interest (including public safety or health) a union or employer must give written notice to the other parties within the specified timeframe. If they don’t give the right notice then the strike or lockout isn’t legal. The party giving notice should make sure that the method of giving notice actually brings it to the attention of the other party, eg pushing an envelope under closed doors after hours will not bring it to the attention of the other party.

Written notice must also be given to the Chief Executive of the Ministry of Business, Innovation and Employment. This should be done at the same time as notice is given to the other party so that employment mediation services can be offered as soon as possible.

Can there be a strike or lockout during the term of the collective agreement?

No strike or lockout can occur during the term of a collective agreement. A collective agreement remains in full force and effect upon expiry, from year to year unless otherwise negotiated. The parties must bargain collectively and achieve either a settlement for ratification by the parties or be at impasse.

Can you strike with a contract?

Most employers negotiate with union representatives that include "no strike" clauses, which stipulate that workers won't strike during the duration of a labor contract. These provisions ban essentially all strikes during the contract term, except for those that arise out of abnormally dangerous working conditions.

What is the relationship between strikes and collective bargaining?

Collective bargaining negotiations help level the playing field between individual employees and management by enabling employees to organize and find strength in numbers. But when collective bargaining negotiations fall apart, the result can be a devastating strike.

Are collective agreements legally?

The agreement shall also be binding upon organizations that adhere to it and upon those persons who become members of such organizations at any time. Where an employer is bound by the stipulations of a collective labour agreement, such stipulations shall apply to contracts of employment concluded with the employer.