| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 11/06 |
| Hearing date | 18 Jan 2006 |
| Determination date | 20 January 2006 |
| Member | V Campbell |
| Representation | LJ Yukich ; S Menzies |
| Location | Auckland |
| Parties | Aberhart v Simpsons Farms Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Redundancy - Applicant's position disestablished and new position created - Whether redundancy genuine - Respondent had identified need to have person operating at a higher level than either of two farm managers that it employed, with more accountability for production and productivity - Restructuring for genuine commercial reasons as direct result of need to reorganise management structure of farms to make business more effective - Whether redundancy process fair and reasonable - Consultation was statutory obligation - Consultation process did not meet tests in Communication and Energy Workers Union Inc v Telecom NZ Ltd (cited below) - Respondent discussed proposed restructuring plan but failed to discuss detail and scope of proposed new position - No discussion regarding impact of proposal on applicant's position - Lack of procedural fairness - Unjustified dismissal - Remedies - Took into account that applicant had held job for 15 years, was 58 years old, was not invited to staff Christmas function while still an employee, but did receive more notice than required and in excess of $10,000 compensation for redundancy - Working manager |
| Result | Application granted ; Compensation ($15,000) ; Costs reserved |
| Statutes | ERA s4;ERA s69K;ERA s69O |
| Cases Cited | Aoraki Corporation Ltd v McGavin [1998] 1 ERNZ 601; [1998] 3 NZLR 276;Communication & Energy Workers Union Inc v Telecom NZ Ltd [1993] 2 ERNZ 429;McCulloch v NZ Fire Service Commission [1998] 3 ERNZ 378;NCR (NZ) Corporation Ltd v Blowes [2005] 1 ERNZ 932;Wellington International Airport v Air NZ Ltd [1993] 1 NZLR 671 |
| Number of Pages | 9 |
| PDF File Link: | aa 11_06.pdf [pdf 43 KB] |