Free Riding: Trends in Collective Bargaining Coverage and Union Membership Levels in New Zealand

Raymond Harbridge

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Labor Movements and Unions Employment, Labor, and Gender Studies Legal and Labor Studies

Abstract

Free riding occurs when non-union members receive the benefits of a union-negotiated collective bargain without contributing to the costs of achieving that bargain, whether by paying union mem bership dues or an agency fee. In New Zealand, free riding has been a significant difficulty for unions operating under the Employment Contracts Act 1991. Free riding had been approximately 16 per cent of collective bargaining coverage under previous employment laws. Free riding under the Employment Contracts Act represented some 27 percent of collective bargaining coverage. This paper re views the nature and extent of the differences between industry free riding rates and examines the paradigm shifts occurring in the New Zealand industrial relations system.

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References

1965The Logic of Collective Action 1966The Logic of Collective Action: Public Goods and the Theory of Groups.2025International Labour Review 2013Australian Bulletin of Labour 1985Rational Behavior in Groups: The Free-Riding Tendency 1981The Changing System of Industrial Relations in Great Britain.1976Individual Mobility and Union Voice in the Labor Market 1894The History of Trade Unionism

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2010TUC Organizing Academy 10 years on: what has been the impact on British unions?2002Globalisation and labour market deregulation in Australia and New Zealand 2003Labour Market Re-Regulation and Its Effects on Free-Riding in New Zealand 2004Free-riding in New Zealand: Incidence, Motives and Policy Implications 2006Union Free-Riding in Britain and New Zealand 2006A New Approach to Resolving the Right-to-work Ethical Dilemma

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