The Employment Relations Authority (ERA) has ruled that Fire and Emergency New Zealand (FENZ) breached its statutory duty of good faith and failed to comply with consultation obligations in its collective agreements with the New Zealand Professional Firefighters Union (NZPFU) and the Public Service Association (PSA) during a major restructuring process.
In a decision released March 18, 2026, the ERA found that FENZ did not meet consultation requirements under the NZPFU and PSA collective agreements in relation to an organisational restructure initiated in November 2025. FENZ issued a 260‑page proposal that affected about 700 positions and included more than 150 proposed redundancies. The NZPFU and PSA filed urgent proceedings, arguing that FENZ had not consulted in the manner required before progressing the changes.
The ERA concluded that FENZ failed to consult the unions on whether change should occur, did not engage at a time when union input could influence the proposal, and did not consult in a way driven by a desire to reach consensus. It also held that FENZ breached its statutory obligation of good faith. “These are not the actions of an employer who is being active and constructive in establishing and maintaining a productive employment relationship that involves being responsive and communicative with the other party to the employment relationship, which in this case is the Unions,” the ERA said.
The authority found that the November 2025 document showed the redesign work was already significantly advanced when it was presented to the unions, limiting the scope for them to influence whether change should occur and how it should be structured. It said the level of detail “illustrate[s] how advanced the thinking was” and that this “undermines the prospect of meaningful consultation with the unions in accordance with the words in the consultation clauses.”
Following the determination, the NZPFU and PSA have called on FENZ to halt or withdraw the restructure on the basis that continuing with the current proposal would be unlawful in light of the ERA’s findings. Union officials say consultation is central to assessing whether change is needed and what form it should take, and should not be treated as a procedural step. They maintain that staff performing the work are positioned to identify operational issues, risks, and options for organisational change. Union representatives have also sought government involvement, urging ministers to “demand the board and executive leadership team are brought into line.” They argue FENZ should focus on ensuring it has sufficient capacity and capability to carry out its statutory functions under the Fire and Emergency New Zealand Act 2017 “lawfully and constructively,” and on engaging more closely with unions.
The ERA found that FENZ approached the unions after it had already gathered internal feedback on the proposal and then concentrated discussions on that feedback rather than the underlying design and reasons for change. “I find that FENZ has breached the consultation clauses in the collective agreements with the unions by not consulting on a proposal early enough to allow for consultation on whether change should occur and the reasons for change,” the decision stated. It also found “a breach of the statutory obligation of good faith by FENZ,” including in relation to the timing and method of releasing wide‑ranging changes while both unions were engaged in other activities.
The ERA ruling comes amid an ongoing dispute between FENZ and the NZPFU over a collective employment agreement for paid firefighters. The parties have been in bargaining since July 16, 2024, and are currently in a facilitation process. On March 16, 2026, between noon and 1pm, FENZ received 10 incident calls during what it described as the nineteenth one‑hour strike by NZPFU members. Eight incidents were in areas covered by striking professional firefighters. According to FENZ, five calls were false alarms, one was a medical incident handed to Hato Hone St John under existing contingency arrangements, one was a small vegetation fire extinguished by volunteer crews, and one involved a motor vehicle incident.
Deputy National Commander Megan Stiffler acknowledged the role of volunteers and operational leaders in maintaining response capability during strike periods. “I would also like to thank our Operational Commanders and Communication Centre Managers who contributed to the response,” Stiffler said. She has criticised the continuation and escalation of strike action while facilitation is under way. “It is disappointing the NZPFU continues to escalate its industrial action while we have been in a process of facilitation. We’ve seen the devastating outcome of fires in Pakuranga and Northcote College in recent weeks during strikes by paid firefighters. The NZPFU continues to gamble with public safety each time they strike,” she said. She added that FENZ has attempted to agree with the NZPFU on how to respond to emergencies during strikes, but that “these NZPFU has rebuffed by these attempts.”
The dispute sits alongside wider budget and investment settings. FENZ has stated that its offer to paid firefighters prior to facilitation represented an average 6.2% pay increase over three years, which it views as consistent with recent public sector agreements. Under that offer, average senior firefighter base salaries would move from about $81,000-$87,000 to around $86,000-$93,000 by the end of the term, excluding overtime and allowances. Overtime and allowances currently add an average of almost $39,000 a year to senior firefighters’ remuneration.
FENZ has also referred to the previous 2022 collective settlement, which it says delivered cumulative increases of up to 24% over three years for paid firefighters. It has reported capital investment in vehicles and facilities, noting that 317 new trucks have been delivered since 2017, with another 78 on order, alongside a programme of station upgrades and training. For the 2025/26 financial year, FENZ has an operating budget of $857.9 million. It reports that 59% of expenditure is allocated directly to frontline operations and 32% to frontline support functions, and says this means just over 90% of its budget is allocated to frontline activity and supporting roles.
FENZ is funded almost entirely through the Fire and Emergency levy on contracts of insurance where property in New Zealand is insured against the risk of fire. For levy purposes, “property” includes real and personal property such as buildings, contents, plant and equipment, office equipment, stock, and car parks, subject to statutory exemptions and separate treatment for marine insurance. Responsibility for calculating and paying the levy depends on the policy structure and placement:
Levy is due by the 15th day of the second month after policy inception or renewal, and Goods and Services Tax at 15% applies to the levy amount. Late payment may result in interest and surcharges. FENZ has issued guidance material for insurers, intermediaries, and large insureds, including information on levy rate changes from July 1, 2024, treatment of mid‑term adjustments, indemnity value calculations, statutory declaration requirements for local and overseas customers, the treatment of contract works, and levy exemptions, including for art and collections. With the ERA’s findings on consultation, the NZPFU’s strike action and FENZ’s funding arrangements developing in parallel, insurers, and brokers may review potential implications for service delivery, levy administration, and advice to clients with property exposures in New Zealand.
