| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 97/07 |
| Hearing date | 15 May 2007 |
| Determination date | 09 August 2007 |
| Member | J Crichton |
| Representation | P Shamy, K Dalziel ; A Drake |
| Location | Christchurch |
| Parties | Taylor & Ors v Office Max New Zealand Ltd |
| Other Parties | Hutchison, Thomas, Baker, Pene-Smith, Morton, Lagerberg, McKinnel, Parsons, Seaward, Williams |
| Summary | UNJUSTIFIED DISADVANTAGE – Eleven applicants employed in various sales roles - Respondent attempted to introduce new commission structure – Would result in loss of income to applicants – Process of consultation purportedly undertaken over next year – Authority found no genuine prospect of applicants influencing respondent – Respondent agreed to keep applicants on original commission structure after grievance process begun – Applicants disadvantaged by implementation of new scheme after a long period in which were left in state of perpetual anxiety about possible reduction in income – Respondent’s unilateral imposition of scheme constituted unjustified action – Respondent argued as cancelled new scheme applicants not subject to negative consequences – Respondent did not act promptly, scheme cancelled about three months after grievances raised – Authority looked at respondent’s behaviour over whole period (nearly two years) – Consultation process created level of unbearable uncertainty during that time – Flawed process breached good faith obligations – “Patch up” principle from Rankin v Attorney-General (cited below) did not apply as patch not large enough to deal with injury – Remedies – Respondent ordered to retain applicants on old scheme until new scheme agreed to - Respondent had breached good faith obligations but penalty not considered as payment of compensation appropriate - Sales |
| Result | Application granted ; Reimbursement of lost wages (Quantum to be determined) ; Compensation for humiliation etc ($6,000)(each applicant) ; Orders accordingly ; Costs reserved |
| Main Category | Personal Grievance |
| Cases Cited | Coutts Cars Limited v Baguley [2001] 1 ERNZ 660 ; [2002] 2 NZLR 533;Rankin v Attorney General in respect of the State Services Commissioner [2001] ERNZ 476 |
| Number of Pages | 16 |
| PDF File Link: | ca 97_07.pdf [pdf 51 KB] |