Industrial Reform - the New Zealand Experience Emeritus Professor Phil Meade Deputy Vice- Chancellor (Academic) A Case Study of the University of Otago

Industrial Reform in the University Sector: The New Zealand Experience - A Case Study of the University of Otago Emeritus Professor Phil Meade 18 May 2004

The New Zealand Experience Industrial Conciliation and Arbitration Act 1894 Employment Contracts Act 1991 Employment Relations Act 2000

The New Zealand Experience Formerly the Blackball Hilton

The New Zealand Experience : Significant change in employment terms and conditions in New Zealand universities 1Removal of academic salary setting from the Higher Salaries Commission 2The Vice-Chancellor became the employer of all University staff

The New Zealand Experience Consequences Immediate tension set up between the Vice-Chancellor and staff

The New Zealand Experience The Employment Contracts Act 1991 (ECA) 1Removed the protected position enjoyed by unions 2Allowed individual staff to choose own representation 3Extended personal grievance rights to all New Zealand workers

The New Zealand Experience Consequences 1New legislation - no elements of compulsion to either bargain or settle 2Period of ECA saw little industrial action 3Union movements’ numbers plummeted The Employment Contracts Act 1991 (ECA)

The New Zealand Experience The Employment Contracts Act 1991 (ECA) Consequences - Continued 4Agreed terms between an employee and his/her employer were paramount 5An employment contract like any other commercial contract

The New Zealand Experience The Employment Relations Act 2000 (ERA) 1Reintroduced the monopoly rights of unions to bargain on behalf of their members 2Only unions can now negotiate Collective Employment Agreements (CEA)

The New Zealand Experience The Employment Relations Act 2000 (ERA) Consequences 1Change of mindset amongst union movement and members 2Now far more industrial action around CEA bargaining 3Staff salary expectations raised by Government without provision of resources for universities to respond

The New Zealand Experience The University of Otago Experience 1Positive working relationships with unions on all matters except the question of pay rates 2Both University and staff favour higher pay rates but University is not funded to do so 3Unions are putting pressure on the Government via the Employer

The New Zealand Experience The University of Otago Experience - Continued 4Under ECA the University sought to enhance institutional autonomy by promoting Enterprise Collective Bargaining as opposed to National Collective Bargaining 5Under ERA Unions are turning to Multi-Employer Collective Agreements 6The University is seeking to retain institutional autonomy - a stance that is causing friction

The New Zealand Experience Case Studies: Implementing Industrial Relations Reform at the University of Otago working with Association of University Staff (AUS) to develop HR policies: confirmation development review promotion

Case Study 1 Working with the AUS to Develop HR Policies Confirmation of Appointment Process Upon appointment, the HoD and staff member establish appropriate performance objectives and standards for teaching, research and service These are signed off by the Assistant Vice-Chancellor and the Deputy Vice-Chancellor (Academic) (DVCA) The normal confirmation period is 5 years A staff member’s progress is audited on an annual basis

Case Study 2 Working with the AUS to Develop HR Policies Scholarship Development Process A working group which included the DVCA, Director of Human Resources and AUS officials has developed a systematic approach to scholarship development for staff The process provides an opportunity for reflection on past achievements and clarification of future direction

Case Study 3 Working with the AUS to Develop HR Policies Assessment of Professorial Performance The performance of all professorial staff is evaluated biennially The process commences with either a self evaluation or a peer evaluation Following an interview between the professor and HoD, the HoD undertakes an assessment of the professor’s performance

Case Study 3 Working with the AUS to Develop HR Policies Assessment of Professorial Performance - Continued The Assistant Vice-Chancellor makes an overall evaluation and may add additional comment The professor then signs the form and may comment The Vice-Chancellor determines the outcome

Case Study 4 Working with AUS to Develop HR Policies Academic Promotion In 1995 DVCA, Director of Human Resources and two AUS officials formed a working party to develop a criterion-referenced promotion process Ground rules agreed: –Of the three arms for promotion, teaching, research and service the first two were considered to be of equal status –high competence in teaching cannot compensate for low competence in research and vice-versa

Schedule 5 - Promotion to Associate Professor 5.1General Criteria - candidates shall be required to show evidence of sustained outstanding competence in two or more of the three main functions of academic staff … 5.2Specific Criteria Case Study 4 Working with AUS to Develop HR Policies

Case Study 4 Working with AUS to Develop HR Policies Schedule 5 - Promotion to Associate Professor - Continued 5.2.1Sustained outstanding competence in teaching The Vice-Chancellor will look for outstanding ability to inspire high academic endeavour and for original thought with respect to teaching and will take into account achievements in one or more of: asustained record of fostering the full development of individual student talent; bleadership in teaching and course design terms;...

Case Study 4 Working with AUS to Develop HR Policies Promotion to Associate Professor Staffing Advisory Committee DVCA is Chair Two members of AUS “sit in” as observers AUS members provide written feedback

Case Study 4 Working with AUS to Develop HR Policies AUS Feedback Equity of process: “the process of promotions was adhered to rigorously. The SAC members were very considerate as to their role and took it seriously. Overall we thought the process was transparent, rigorous and fair.” Comments from HoD: “the quality of supporting statements from HoDs were highly variable. It is important that the HoD states whether and why the candidate has met the criteria because the categorisation of performance is closely scrutinised by the SAC.”

Case Study 4 Working with AUS to Develop HR Policies AUS Feedback - Continued Comment on DVCA: “we would like to acknowledge and appreciate that the DVCA, as Chair, actively encouraged our involvement and provided ample opportunity for us to give feedback during the meetings.” Comment on the Otago Teaching Profile (OTP): “while the OTP takes a considerable amount of time for staff members to develop, it is clear that it has contributed to a more informed and balanced assessment of overall teaching performance.”

Case Study 4 Working with AUS to Develop HR Policies AUS Feedback - Continued The basis for assessing performance: “the service category continues to be the area in which it is most difficult to effectively assess the level of performance. The very generality of what counts as “service” as well as the lack of a common benchmark against which to judge “ordinary” as opposed to “outstanding” service meant that SAC struggled on several occasions to reach agreement on a candidate’s ranking.”

The New Zealand Experience - Lessons for Australia Current Industrial Relations Climate in New Zealand An employment law environment based around “good faith” principles Assumes rational negotiation will arrive at sound solutions Provision in the ERA for employment relations education leave Allows individuals opportunity to pursue a personal grievance

The New Zealand Experience - Lessons for Australia University of Otago Relationship with Unions Fairly positive working relationships with trade unions on all matters, except pay rates Most success in development and administration of HR policies AUS consistently professional and conscientious Over past decade unions have worked successfully with the University community and together have sustained a highly professional relationship