This paper examines the current state of play in New Zealand's industr
ial relations policy following the first general election under a syst
em of proportional representation. The implications of the new Coaliti
on Government's policy statements are examined in light of the current
outcomes under the Employment Contracts Act. it is concluded that rad
ical reforms, and therefore radical changes, are unlikely With the exc
eption of the role of the Employment Court, institutional arrangements
and bargaining outcomes under the Employment Contracts Act have becom
e reasonably stable and are unlikely to be radically altered The role
of the Employment Court and to a lesser extent the Employment Tribunal
is under threat and a more gradual move towards further liberalizatio
n of the labor market through changes to personal grievance procedures
and bargaining process requirements cannot be ruled out.