| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | [2014] NZERA Wellington 98 |
| Hearing date | 18 Jun 2014 |
| Determination date | 08 October 2014 |
| Member | T MacKinnon |
| Representation | T Kennedy ; D Gould |
| Parties | New Zealand Tramways and Public Passenger Transport Employees Union (Inc) Wellington Branch and Anor v Wellington City Transport Ltd t/a Go Wellington |
| Other Parties | Daue |
| Summary | DISPUTE - ARREARS OF WAGES - Parties disputed meaning of week's pay" in collective employment agreement ("CEA") - Second applicant sought arrears of wages - Second applicant paid retiring gratuity calculated on basis of 40 hour work week - Whether "week's pay" should be calculated based on average earnings over previous 12 months" |
| Abstract | AUTHORITY FOUND -;DISPUTE - ARREARS OF WAGES: Respondent had discretion as to whether to pay retiring gratuity but not to determine basis for calculating payment. Some merit in respondent's submission parties would have been clear if week's pay" intended to be based on average weekly earnings but argument not determinative of matter. Past practice not determinative. Purpose of retiring gratuity did not support respondent's position. Respondent's submission that average weekly earnings formula subject to manipulation and possible for employee to take on extra shifts or work overtime to increase gross earnings not compelling. Hours of work clause in CEA provided for 40 hours minimum per week and uncommon for fulltime employees to work only 40 hours per week. Reasonable person would expect employee's pay for purposes of retiring gratuity formula to relate to wages actually received during employment. Averaging earnings over last 52 weeks of employment rational and pragmatic where employee worked more than minimum number of hours. "Week's pay" for purposes of retiring gratuity to be calculated on basis of greater of 40 hours per week for fulltime employees or employee's average weekly earnings for 12 months before retirement. Question answered in favour of applicants. Respondent to pay second applicant $8,111 arrears of wages. Interest payable." |
| Result | Question answered in favour of applicants ; Arrears of wages ($8,111.77) ; Interest (5%) ; Costs reserved |
| Main Category | Dispute |
| Statutes | ERA s129(2);ERA s131;ERA s161(2)(b);Holidays Act 2003 |
| Cases Cited | New Zealand Air Line Pilots' Assoc Inc v Air New Zealand Ltd (2013) 10 NZELR 292;New Zealand Meat Workers Union of Aotearoa Inc v AFFCO New Zealand Ltd [2011] ERNZ 126;Progressive Meats Ltd v Pohio [2012] NZEmpC 103;Silver Fern Farms Ltd v New Zealand Meat Workers and Related Trade Unions Inc [2010] ERNZ 317;Vector Gas Ltd v Bay of Plenty Energy Ltd [2010] 2 NZLR 444 |
| Number of Pages | 12 |
| PDF File Link: | 2014_NZERA_Wellington_98.pdf [pdf 130 KB] |