Employer associations
What an employer association is
- An employer association is an organisation of businesses in an industry or region that represents their shared interests, funded by member subscriptions.
- It is the employers' counterpart to a trade union.
- New Zealand examples include BusinessNZ, the regional Employers and Manufacturers Associations, Federated Farmers, Hospitality New Zealand and Retail NZ.
What they do for members
- Advocacy and lobbying — putting the industry's case to government on legislation, tax, regulation and immigration settings.
- Employment advice — helping members meet their obligations under the Employment Relations Act 2000 and handle grievances correctly.
- Support in bargaining — advice and representation when negotiating with unions.
- Training and information — courses, templates, updates on legal change.
- Industry standards and accreditation — codes of practice that lift and protect the reputation of the whole industry.
- Networking — connections to other members, suppliers and customers.
Why membership benefits a business
- A small business gets expertise it could not afford. An employment lawyer on retainer is out of reach for most firms; a subscription covering advice is not.
- Collective voice. One business writing to a minister is ignored; an association representing 3,000 employers is consulted.
- Early warning. Members learn about legislative change before it takes effect, giving time to prepare rather than to react.
- Lower risk of error. Getting employment process wrong is expensive — associations exist partly to stop members making avoidable, costly mistakes.
- Reputation. Membership of an association with a code of practice signals to customers that the business meets an agreed standard.
And the costs
- Subscription fees, which for a small business are a real expense with no guaranteed return.
- The association represents the industry's average interest, which may not match one member's position — a large member may find itself funding advocacy that suits smaller competitors.
- Time spent on association activity is time not spent on the business.
Why the community benefits too
- The exam has asked directly why it is a benefit to the community that businesses and employer associations maintain a relationship with government and with unions.
- Industry-wide standards raise conditions for workers across an industry, not just at one employer.
- Coordinated training addresses skill shortages that individual firms would under-invest in, because a firm that trains staff who then leave has funded a competitor.
- Stable industrial relations mean fewer disruptions to services the community relies on.
- An organised industry can respond collectively to a regional emergency, a biosecurity incursion or a downturn.