Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 177/08
Hearing date 17 Oct 2008
Determination date 26 November 2008
Member J Crichton
Representation T Oldfield ; M Kirk
Location Nelson
Parties Service and Food Workers Union v Sanford Ltd
Summary DISPUTE – Applicant’s member’s current collective employment agreement (“CEA”) contained different wage scale to earlier CEA – Authority found issue was placement of continuing employees on new wage matrix in CEA relative to placement in old CEA – Applicant argued respondent applied percentage increase to employees across the board rather than paying each employee according to wage rate on current CEA matrix – Applicant argued percentage increase never agreed to – Respondent argued applicant overlooked process of transiting wage matrix in old CEA to wage matrix in current CEA – Applicant sought determination requiring respondent pay members in accordance with their interpretation of current CEA together with arrears of wages – Respondent argued applicant allowed it to believe reached agreement on interpretation of current CEA when did not – Respondent argued correctly applied CEA – Authority dismissed respondent’s counterclaim that applicant breached duty of good faith by engaging in misleading conduct – Authority found issue was respondent took applicant’s silence as consent whereas applicant believed having not assented to transition documents then documents not part of agreement – Authority found CEA silent on way employees to be transited from old CEA to new CEA – Authority reluctantly concluded unable to interpret CEA to support either applicant or respondent because CEA silent on meaning parties sought to derive from it – However, more likely applicant ratified CEA on understanding advanced by respondent so applicant’s members assented to respondent’s view
Result Questions answered in favour of respondent ; Costs to lie where they fall
Main Category Dispute
Number of Pages 10
PDF File Link: ca 177_08.pdf [pdf 35 KB]