Concrete Structures Limited factory, Rotorua. Photo / Stephen Parker
Rotorua employer Concrete Structures (NZ) Limited (CSL) has been ordered to pay more than $13,000 for unjustifiably dismissing an employee of more than 12 years.
The manufacturing and civil engineering company has pre-cast factories in Rotorua, Auckland, Hastings, and Christchurch and provides civil construction teams for projects across the country.
According to an Employment Relations Authority decision ] last week, Sam Ward was employed to work in Concrete Structures' Rotorua factory from early 2004.
In 2008 he was promoted to supervise project sites around New Zealand, but in 2016 his employment with Concrete Structures ended.
Ward claimed he was unjustifiably dismissed, but Concrete Structures said he was granted sabbatical leave.
He sought lost wages, compensation for humiliation, loss of dignity and injury to his feelings, and loss of a benefit.
The Employment Relations Authority held an investigation meeting last month.
Authority member Jenni-Maree Trotman's determination, dated November 14, found that Ward and Concrete Structures had a "relatively harmonious" relationship until mid-2016.
Concrete Structures was concerned when Ward developed a medical condition that left him regularly falling asleep at work.
"This included falling asleep while operating the crane and on one occasion while driving the company vehicle."
The company was also concerned by "an affair involving family members of Mr Ward and Mr Romanes [Concrete Structures' general manager]" and that "Ward was not willing to work at sites away from home".
"Mr Romanes said CSL did not have any work available for him [Ward] on sites close to his home and working in the Rotorua factory was not an efficient use of his time especially due to the salary he was being paid."
Trotman concluded, "There was no investigation or raising of any of CSL's performance or other concerns with Mr Ward before dismissal".
"Nor was there any reasonable opportunity afforded to Mr Ward to respond to CSL's concerns before dismissal. These defects were not minor and did result in Mr Ward being treated unfairly."
Email evidence from November 2016 said Ward had "found alternative short-term employment however remuneration is well below what he enjoyed at CSL".
Trotman said Ward, and his father gave "compelling evidence" about the effect of the dismissal.
"Mr Ward said he suffered a mental breakdown. He lost confidence in himself and he felt useless. He suffered relationship problems with his partner and his father.
"He said his financial difficulties led to him having to rent out the family home and relocate his family to his partner's parents' home. He also had to borrow money from family and friends. This was deeply humiliating for him.
"Mr Ward Senior spoke of Mr Ward's love for his job. Mr Ward had worked for CSL since he had left school. They had supported and trained him ... To find himself without a job left Mr Ward visibly devastated.
"He became distant and non-communicative. Mr Ward Senior explained it was only in the last two to three months that Mr Ward had started to come out of his shell."
Trotman noted that Ward failed to comply in May this year, when the Employment Relations Authority asked him to provide evidence of lost remuneration and attempts to mitigate it.
"His failure formed a pattern of breaches of the Authority's timetable directions that obstructed the Authority's investigation and will form the subject of a separate determination."
Trotman ordered Concrete Structures to pay $2754 for lost wages, and $10,800 compensation within 28 days of her November 14 determination.
She also ordered Concrete Structures to pay to Ward, within 28 days, the monetary value of 8.37 units in Pool 2 of the CS Employees Trust Fund, reduced by 40 per cent, that he would have been entitled to.
The Pool 2 shareholdings were sold in 2016, but in May 2015 the value of Ward's 8.37 units was $14,387.
Ward's lawyer, Greg Bennett, said that overall the decision was "good" for Ward, but he would be appealing it because of the 40 per cent reductions to his payout.
"He feels that that's unwarranted," Bennett said.
"The decision as a whole, he's happy with. It's cleared his name and left him to move on with his life."
Bennett said a challenge would soon be filed in the Employment Court, where the entire matter would likely be reheard in the middle of next year.
Concrete Structures' lawyer did not respond to request for comment.