Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 94/06
Hearing date 28 Apr 2006
Determination date 26 June 2006
Member H Doyle
Representation P Cranney ; R Towner
Location Christchurch
Parties Maritime Union of New Zealand v Lyttelton Port Company Ltd
Summary DISPUTE - Whether clause of collective employment agreement (CEA") concerning performance bonuses correctly interpreted, applied, and operated - No performance bonuses paid in 2005 to those covered by CEA - Whether respondent operated performance based bonus system based on actual financial performance in accordance with relevant clause of CEA - Respondent required to operate performance based bonus system based on actual financial performance - Clause did not specify particular approach or methodology - Matters left to be decided by respondent exercising discretion and following a reasonable and structured process each year - Irrelevant matters should not be taken into account - Bonus payments made in two previous years though deterioration of financial performance - Did not mean respondent obliged to make bonus payment again in 2005 - Fact bonuses paid every year did not create practice or expectation of such payment - Any bonuses paid to employees under individual employment agreements because of different contractual obligations - Respondent's process satisfied requirements of clause - Respondent did not take irrelevant matters into consideration - Decision made not to pay bonus made solely on basis of poor financial performance - Order prohibiting publication of parts of specified paper to remuneration committee (specific parts prohibited set out in determination)"
Result Dispute answered in favour of respondent ; Orders accordingly ; Costs reserved
Statutes ERA Second Schedule cl10(1)
Number of Pages 7
PDF File Link: ca 94_06.pdf [pdf 40 KB]