| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2011] NZERA Auckland 27 |
| Hearing date | 7 Dec 2010 |
| Determination date | 20 January 2011 |
| Member | R Arthur |
| Representation | J Minto ; L Rush |
| Location | Auckland |
| Parties | Coverdale v Rush Security Services Ltd |
| Summary | UNJUSTIFIED DISADVANTAGE – Redundancy – Applicant claimed unjustifiably disadvantaged and dismissed for redundancy while respondent kept on another employee a fortnight beforehand – Respondent argued genuine commercial and operational reasons to disestablish applicant’s position and fair process followed – Authority noted integrity of restructuring scheme, even where motivated by genuine operational requirements may be compromised by application to individuals for reasons other than that jobs gone – Authority found genuine operational reasons existed regarding changes to technical scheduling and introduction of new telephone system – Found applicant had not established selection for redundancy and decision to disestablish position motivated by ulterior motive – Found respondent’s decision to disestablish applicant’s position made for genuine commercial reasons – However, significant failures of fairness in procedure followed by respondent – Found inadequate consultation and consideration of alternatives to redundancy and dismissal – Found real prospect applicant could have been redeployed to another role if respondent had properly paid attention to consultation obligations – However, respondent’s actions not unjustified in selecting applicant for redundancy over another employee – Found criteria applied by respondent legitimate and transparent – Found applicant unjustifiably disadvantaged – Remedies – Authority found humiliation etc at lower end of scale – Found $3,000 compensation appropriate – Security Officer |
| Result | Application granted ; Compensation for humiliation etc ($3,000) ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s4;ERA s4(1A);ERA s4(1A)(c);ERA s4(4);ERA s103A |
| Cases Cited | Aoraki Corporation Ltd v McGavin [1998] 1 ERNZ 601;Coutts Cars Ltd v Baguley [2001] ERNZ 660 ; [2002] 2 NZLR 533;Forest Park (NZ) Ltd v Adams [2000] 2 ERNZ 310;Nelson Aero Club Inc v Palmer unreported, Shaw J, 7 March 2000, WC 10A/00;NZ Fasteners Stainless Ltd v Thwaites [2000] ERNZ 739;Savage v Unlimited Architecture Ltd [1999] 2 ERNZ 40;Simpsons Farms Ltd v Aberhart [2006] ERNZ 825 |
| Number of Pages | 10 |
| PDF File Link: | 2011_NZERA_Auckland_27.pdf [pdf 35 KB] |