This article offers a perspective on the growing debate on the future direction of industrial relations in New Zealand. It argues the existence of a significant relationship between the business environment of an industry and the industrial relations practices adopted by its constituent employers. In focusing on the pursuit of internal labour market flexibility in the retail food industry it attempts to analyse the various factors that have both impelled and impeded this process. It concludes that while the demand for greater flexibility tends to be generated within the industry, its successful implementation is frequently subject to external factors.
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