Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 139/05
Hearing date 17 May 2005
Determination date 21 October 2005
Member P Montgomery
Representation SG Wilson ; G Jones
Location Christchurch
Parties Firestone Employees Society Inc and Ors v Bridgestone New Zealand Ltd
Summary UNJUSTIFIED DISADVANTAGE - Respondent operated gainshare plan" with annual bonus paid out if targets met - Key aspect of gainshare plan was requirement that employees who took special leave were required to make up hours by working on rostered days off to maintain eligibility for bonus - For 2004 only target was full attendance except for authorised approved leave - Respondent gave certain employees so-called "friendly reminder" letter - In example of such letter following pattern of absenteeism classified as "unacceptable": one sick and one domestic days in 2004, two sick and one domestic days in 2003 and three sick and two domestic days in 2002 - Letter advised that failure to bring about immediate improvement to attendance record could result in initiatives such as disciplinary action, permanent job transfer and non-payment for absent time - Applicant and affected employees took umbrage at letters and respondent's refusal to remove them from personnel files - Letter did not make it clear it was written in context of gainshare plan and ran very high risk of being read in full context of statutory special leave entitlements - Letters not "friendly reminders" - However respondent entitled to issue letters to bring to attention of affected employees that bonus was at risk - No unjustified disadvantage - BREACH OF CONTRACT - Parties' collective agreement expressly provided for consultation - Respondent breached agreement by not consulting applicant before letters sent - Penalty ordered - Order that letters be removed from personnel files and were to play no part in any possible future action against any of applicants - GOOD FAITH - Actions fell short of breach of duty to act in good faith"
Result Application dismissed (unjustified disadvantage and breach of good faith) ; Application granted (breach of contract) ; Penalty ($1,000)(payable to Crown) ; Orders accordingly ; Costs reserved
Number of Pages 5
PDF File Link: ca 139_05.pdf [pdf 24 KB]