| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 122/10 |
| Hearing date | 18 Mar 2010 |
| Determination date | 13 May 2010 |
| Member | J Crichton |
| Representation | P Cranney ; G Blair |
| Location | Christchurch |
| Parties | Williams & Ors v Pacifica Shipping (1985) Ltd |
| Other Parties | Thain, Guthrie, Rowe, Heaven, Koskela, Wigdahl |
| Summary | DISPUTE – ARREARS OF WAGES - First issue, whether redundancy clause correctly interpreted and applied – Redundancy clause provided redundant workers entitled to “pro rate long service leave based on service at time of redundancy” – Further clause provided long service leave entitlements crystallises after completing 10 years service - Applicants claimed redundancy clause’s ordinary meaning to calculate pro rata redundancy on long service leave entitlements without need to complete ten or more years service – Respondent argued clause to be read with entitlement to long service clause – Authority found respondent’s interpretation required interpretation by implication of other provisions inconsistent with contract interpretation rules – Found respondent’s interpretation would mean redundancy clause had no meaning as workers would not derive additional entitlement to long service leave after made redundant - Found applicants’ interpretation consistent with ordinary meaning of words – Found clause’s purpose to provide particular benefit to worker who lost ability to serve employer for period sufficient to qualify for long service due to redundancy – Respondent ordered to pay applicants entitlement to portion of special holiday pay for long service calculated at time of worker’s redundancy – Second issue, whether redundant worker entitled to receive three weeks pay in lieu of notice – Payment of notice clause provided redundant workers to receive three weeks lieu of notice – Respondent agued notice clause to be read with redundancy clause – Argued notice calculated same as redundancy compensation – Found notice and compensation different – Found ordinary meaning redundant worker entitled to three weeks pay in lieu of notice – Found no basis for accepting respondent’s interpretation – Respondent ordered to pay applicants’ three weeks notice of redundancy calculated at rate worker would have been paid – Questions answered in favour of applicants – Compliance ordered |
| Result | Questions answered in favour of applicants ; Compliance ordered ; Orders made ; Long service leave (Quantum to be determined)(All applicants) ; Pay in lieu of notice (3 weeks)(Quantum to be determined)(All applicants) ; Costs reserved |
| Main Category | Dispute |
| Statutes | ERA s137(1)(a)(i);ERA s137(3) |
| Number of Pages | 6 |
| PDF File Link: | ca 122_10.pdf [pdf 20 KB] |