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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