Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Brightwater ordered to pay $77K over shoddy redundancy

Brightwater ordered to pay $77K in lost pay, compo over shoddy redundancy

By Paul McBeth

Jan. 10 (BusinessDesk) - Nelson-based Brightwater Group, which last year threatened redundancies over delays to Bathurst Resources' proposed coal mine on the Denniston Plateau, has been ordered to pay more than $77,000 to in lost wages and compensation over the way it laid off four staff in 2010.

Employment Relations Authority member Helen Doyle found the engineering firm ran a flawed and predetermined process in selecting who would get laid off after its contract with Solid Energy on the Stockton mine wrapped up, and wasn't in line with good faith obligations. The Dec. 17 decision was published on the Department of Labour's website today.

Brightwater had grounds to lay off staff as the Stockton project wound up and after two other major projects didn't eventuate, Doyle said in the ruling. The four men were part of 10 staff made redundant in the Brightwater workshop out of 54 employees in 2010, which has since been reduced to 22 as at August last year.

Where the firm tripped up was in the way it selected who faced redundancy by using a flawed skills matrix to rank employees, and without giving them any chance to dispute the list.

"I find that there was a fundamental unfairness and a breach of good faith requirements with the selection process used by Brightwater to select the four applicants for redundancy," Doyle said.

"There was also an element of predetermination because Brightwater simply relied on a skills matrix prepared some months earlier for the selection of employees for redundancy and were not genuinely, I have found, prepared to make any change to that matrix," she said.

It was "virtually impossible" for the men to "sensibly comment on the skills matrix" at their final meeting, and Brightwater's then chief executive Richard Herd made the final decision without giving them any opportunity to address him directly.

"The actions of Brightwater were not what a fair and reasonable employer would have done," Doyle said.

Brightwater was ordered to pay Brian Arrowsmith $18,224.09 and $1,115.65 to reimburse a cancellation fee he paid for a cancelled holiday plus 5 percent interest. He also received $22.40 from a lost Kiwisaver benefit, and $12,000 in compensation.

The firm was ordered to pay Stuart Arrowsmith $2,700 plus interest for lost wages and $12,000 in compensation, and Michael Colquhoun $8,643.69 plus interest in lost wages and $12,000 compensation.

Brightwater was ordered to pay Andrew Doocey $10,000 in compensation, though he wasn't entitled to lost wages as the ERA's Doyle wasn't convinced he would have kept his role, which was disestablished, even if the process had been fair.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news