As an early pioneer of market-led institutional reforms and New Public Management policies, New Zealand arguably has one of the most 'neoliberalised' tertiary education sectors in the world. This article reports on a recent academic dispute concerning the attempt by management to introduce a new category of casualised academic employee within one of the country's largest research universities. It is based on a fieldwork study, including document analysis, interviews and the participation of both authors in union and activist activities arising from the dispute. Whilst some academics may collude in the new regimes of governance that these reforms have created, we suggest that 'collusion' and 'resistance' are inadequate terms for explaining how academic behaviour and subjectivities are being reshaped in the modern neoliberal university. We argue for a more theoretically nuanced and situational account that acknowledges the wider legal and systemic constraints that these reforms have created. To do this, we problematise the concept of collusion and reframe it according to three different categories: 'conscious complicity', 'unwitting complicity' and 'coercive complicity'. We ask, what happens when one must 'collude' in order to resist, or when certain forms of opposition are rendered impossible by the terms of one's employment contract? We conclude by reflecting on ways in which academics understand and engage with the policies of university managers in contexts where changes to the framework governing employment relations have rendered conventional forms of resistance increasingly problematic, if not illegal.