| Summary |
PRACTICE AND PROCEDURE - Application for removal to Employment Court - Joint request from parties - Applicant sought compliance order requiring respondent to comply with pay rates in trial agreement - Trial agreement implemented following plant refurbishment and reconfiguration to ensure employees suffered no financial loss whilst adjusted to upgrade - Respondent claimed trial agreement legitimately expired - Respondent also claimed discovered pay rates in trial agreement incorrect and did not reflect intention of parties - Respondent requested Authority either a) determine employment relationship now governed by Core Collective Employment Agreement (“CEA”) and Plant Agreement, or b) rectify trial agreement pay rate to match parties alleged intention, or c) provide relief under Contractual Mistakes Act 1977 (“CMA”) on grounds both parties influenced to enter into contract by same mistake, or d) if trial agreement found to still be operative and rectification declined, provide relief under CMA on grounds respondent entered into agreement influenced by material mistake which was known to applicant - Respondent had reduced pay rates and parties had been unable to reach agreement on new agreement - Applicant submitted trial agreement either collective agreement in own right or ‘additional terms and conditions’ of employment under s61 Employment Relations Act 2000 (ERA") - Claimed that in either case trial agreement continued in force under s53 ERA - Claimed purported expiry of agreement illegal under s66 ERA - Claimed s163 ERA precluded relief under CMA or by way of rectification - Respondent argued trial agreement ended and therefore under no obligation to continue to pay employees at trial agreement rate - Also claimed continuation of payments amounted to series of individual employment agreements and pay rates therein were result of genuine mistake rectifiable by Authority under CMA - Status of trial agreement complicated by CEA - Clause 5 CEA provided provisions or variations of CEA variable by written agreement according to specified procedure - Despite appearing to follow specified procedure neither party accepted trial agreement part of CEA - Resolution of matter required consideration of status of trial agreement, its relationship with CEA, legality of its expiry, and whether CMA could apply or if prohibited by ERA - Authority found important questions of law central to resolution of matter - Important parties receive speedy final resolution of matter because respondent already paying lower rates and season likely to end shortly - Matter removed to Employment Court" |