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The Transformation of Employment Relations in New Zealand State-Owned Enterprises

The Assertion of Management Control

University of Auckland

Barry Spicer

University of Auckland

This paper examines the changes in employment relations which occurred in a number of government departments, government trading enterprises and statutory corporations as they were transformed into state-owned enterprises (SOEs) under New Zealand State-Owned Enterprises Act 1986. Under this important piece of legislation every SOE is expected to operate as a successful business which is as profitable and efficient as comparable businesses not owned by the state. Resulting changes in employment relations included the removal of centralized and bureaucratic public-sector controls, the assertion of management control in employment relations, the devolution of manage ment control, the reform of the workplace, the design of new performance appraisal and incentive mechanisms, and a focus on devices to change organ izational culture and employee commitment. As they emerge from their tran sitions, SOEs are beginning to develop a strategic human resource manage ment perspective.

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