Susan Wood wins legal battle against TVNZ

Close Up presenter Wood took up a personal grievance suit against TVNZ. Picture / Nigel Marple

Susan Wood has won a legal battle against her employer Television New Zealand, with the Employment Relations Authority ruling she is a permanent employee and that TVNZ cannot cut her salary without her consent.

Close Up presenter Wood took a personal grievance against TVNZ on learning of plans to cut $100,000 from her $450,000 annual pay packet.

She claimed TVNZ was using her fixed-term agreement to force a significant salary reduction and asked authority member Leon Robinson to rule that as she was a permanent employee, TVNZ could not cut her salary.

In a decision released this afternoon the authority made those rulings. It said her present salary of $450,000 will expire on December 31 and a new salary must be renegotiated between the parties.

Mr Robinson said ordinary New Zealanders found it very difficult to comprehend the salaries of the magnitude paid to presenters.

"There is a view that such salaries are extreme, extravagant and even obscene."

But however contentious, they were governed by the same employment law principles and legislation as all other employments, he said.

On the issue of Wood's employment status, the authority ruled that she was entitled to treat the fixed-term provision of her employment agreement with TVNZ as "ineffective". This meant her employment was indefinite and could only be terminated for "good cause".

Mr Robinson said the law imposed strict requirements for fixed-term employments because there was potential for them to be used "as a device to deny an employee access to remedies for unjustifiable dismissal."

By law, the employer must have "genuine reasons based on reasonable grounds to specify that the employment is to end in a specified way", and the employee must be advised when and how the employment is to end, and reasons for it.

Mr Robinson said Wood and Bill Ralston, TVNZ's head of news and current affairs, disagreed at how her salary of $450,000 was arrived at.

Wood said there was never a suggestion the salary included a premium for the fact she was to be on a fixed-term. Ralston disagreed.

Mr Robinson ruled there was no discussion between Wood and Ralston or any other TVNZ representative particularly directed at the term of employment and the reasons for the term.

The reasons were not brought to her attention before signing the agreement, he said.

He also said the wording of the agreement between TVNZ and Wood was defective and did not make it clear why the employment was to end at all, and in particular on December 31, 2005.

"My findings are surprising," he said.

"It is unfortunate that TVNZ could negotiate and conclude this binding legal agreement in such a casual fashion having regard to its standing in our community, as a large employer and the price of the contract."

Mr Robinson said TVNZ ought to have taken "far more care" in the drafting and negotiation of the agreement.

Because of the ruling that Wood's employment was indefinite, TVNZ was not permitted to impose a new salary on Wood.

The parties must now attempt to reach agreement on a new salary in the same way as a conventional pay review, Mr Robinson said.

" I trust the parties will use their best endeavours in good faith to reach an agreement on a new salary. But that salary cannot be imposed on Ms Wood. It must be attained by agreement."

Wood had also asked for compensation for hurt and humiliation, saying the ultimatum made to her was an "unjustifiable action".

She said the situation caused her significant distress and was upsetting. She said she had poured her heart and soul into Close-Up over the past year, to the detriment of personal relationships.

Wood's fiance Kevin Stanley gave evidence that Wood had been devastated by recent events, had trouble sleeping, was stressed and had shouted at her children in an out of character way.

Mr Robinson ruled that TVNZ's actions could not be characterised as "unjustifiable" but were "merely entirely misguided".

The parties were encouraged to resolve costs between them, but if agreement was not reached both parties would need to make applications to the authority.

Wood said she welcomed the decision.

"The judgment speaks for itself. I am relieved it is over and I have been vindicated. I look forward to resolving matters with TVNZ as soon as possible."

- NZPA