Friday, July 17, 2026



Eating Labour's lunch

Yesterday the Greens announced a significant election policy: default union membership. New employees would automatically be enrolled in a "default union", but would be able to opt out. Unions approved, of course, but what did Labour, the supposed party of the union movement think about it?

Yes, they were "non-committal". The same way they're "non-committal" about anything actually left-wing these days (when they're not actively hostile to it, like taxing the rich).

Snark about Labour useless aside, this is actually good policy. It's a nudge towards union membership, making it frictionless to join, while still respecting freedom of association. People can easily opt out, and the first month of temporary membership will cost them nothing. The big question is how many will. Union membership dropped to about 20% after National's Employment Contracts Act, and has never really recovered. This will almost certainly see a significant increase, and provide a place to build from.

The core of the Clark government's industrial relations policy was "give unions the tools, and let them fight and win gains for themselves". That worked quite well. And it will work better with stronger unions. Membership by default will enable that, but also put real pressure on the unions to deliver real benefits for those new members, to demonstrate their relevance and utility - because people are not going to stay members if membership delivers nothing. Its a direct recipe for greater union power - a thing employers actually fear.

The Ardern government's alternative was to spend years building supposed consensus with employers for "fair pay agreements" - essentially a system of centrally negotiated industry-specific awards. These would supposedly deliver to workers regardless of union membership (if employers didn't drag out negotiations and litigate to prevent them from being completed). But then after all that work and despite that supposed consensus, the current regime simply repealed them. It turns out that the employers simply lied about supporting them. Who'd have thunk it?

The same can happen to any replacement system, or any legal tweaks a Labour-led government puts in (see National's reinstatement of the 90-day law, its removal of workplace protections for contractors, and what its doing to the Holidays Act). But the beauty of the Greens' proposal is that it is insulated against such moves. While a new government can repeal the law, union members will remain members until they decide not to be. So the boost to union power will survive a change of government, in a way that laws don't. And the concessions unions win in the interim, and the legal minimums they have written into their contracts "just for certainty" will survive too, and be that much harder to get rid of.

The Greens putting this out there puts the pressure on Labour to support it. And if they don't, or if they want to play silly buggers and pretend not to so they can "surrender" it in coalition negotiations, voters can vote for the party which will deliver the policy they like. If Labour doesn't like that, maybe they should start living up to their name, rather than being NeoLiberals in red ties.