Improved employment relations are perceived as one way of further improving efficiency in the production of milk. To explore the existing state of employment relations in dairy farming and milk production a study of the psychological contracts existing between dairy farmer employers and dairy farm employees was initiated. Psychological contracts have been described as the invisible glue which binds employees to employers and vice versa over time. The term refers to the mutual expectations and perceived obligations existing between employers and employees beyond the normal components of a Legal contract of employment. Using a critical incident approach to impute the content of psychological contracts, groups of employers and employees in major dairy farming areas were interviewed by paid student volunteers. This paper reports the initial findings of the study; suggests the implications of the results; and how the research may be developed
