Multi-employer bargaining in New Zealand within the rise and fall of labour market neoliberalism

Abstract

New Zealand was once at the vanguard of international adoption of neoliberalism in labour market policy. However, international institutions have weakened or even reversed their commitment to these ideals over time. In addition, economic theory has moved towards a model that takes account of monopsony and power. Fair pay agreements, briefly introduced and the abolished in 2023, were considered a crucial legislative change, but they cannot be the full solution to the problem of low worker power in New Zealand. Instead, consideration needs to be given to broader factors behind the continuing loss of employee influence. Finally, the concrete effects of neoliberalism are likely much more persistent than the ideas themselves.