Former radio manager awarded over $74k - ERA

A former radio manager fobbed off with false promises of pay has been awarded nearly $75,000 in compensation by the Employment Relations Authority (ERA).

David Gray was employed by Charity Works Trust in April last year and quit in August after not being paid at all during his employment.

In a decision released today, the ERA ordered the trust to pay Mr Gray $27,730.69 in unpaid wages, $2218.46 for holiday pay, $35,000 for remuneration lost as a result of his personal grievance, and $10,000 for injury to feelings arising from the personal grievance.

The trust was also ordered to pay 5.2 per cent interest from September 14, $2500 for costs Mr Gray incurred during the process, and $210 for service fees.

Mr Gray was hired to manage the day-to-day business operations, and was preparing for the establishment of a new radio station, known as Big FM, his employer Richard Kirby was planning to buy through his company Winstone Investment Ltd (WIL).

Mr Gray approached Mr Kirby four times within a two month period requesting pay, and was turned back with a promise every single time.

Mr Kirby kept putting it off and requested Mr Gray's bank account information three times.

In July, Mr Gray asked for payment for a fifth time and received no reply.

Weeks later, Mr Kirby said he would pay Mr Gray the next day, but the money was never transferred.

During Mr Gray's employment, the purchase of the radio station was still pending. Mr Kirby told him the Trust and WIL was discussing funding possibilities with the Ministry of Social Development.

In August, Mr Gray believed the purchase of the radio was unlikely, and with no payments made, he resigned.

ERA member Rosemary Monaghan upheld Mr Gray's personal grievance claim on the ground of unjustified constructive dismissal, as failure to pay wages leads to an employee's resignation.

She said Mr Gray was also entitled to six months' notice of termination which he did not receive, and suffered injury to his feelings as he suffered from a stress-related medical condition as a result.

"Mr Gray believes Mr Kirby lied to him about funding for the new station. While Mr Gray was aware that funding had not been obtained, he believes Mr Kirby was dishonest about the prospects of obtaining it," Ms Monaghan said.

"Without further information about Mr Kurby's efforts to obtain funding I would not go as far as to say that, but Mr Kirby had an obligation to communicate more information than he did regarding funding."

She said Mr Kirby misled and deceived Mr Gray about pay.

No statement in reply from the trust was filed with the ERA, and the trust was not represented at the investigation meeting.

- NZPA