Television New Zealand Ltd v E Tū Incorporated

TVNZ, New Zealand’s public broadcaster, was facing financial pressure due to declining advertising revenue and the global shift to digital media. In early 2024, TVNZ announced plans to cancel several television shows and make a significant number of staff redundant as part of a major organisational restructure.

Many affected staff were members of E tū Incorporated, a union covered by TVNZ’s collective agreement. E tū argued that TVNZ had not properly involved union members in the decision-making process, as required by clause 10.1 of the agreement. The union took the matter to the Employment Relations Authority, which found in their favour. TVNZ challenged this decision in the Employment Court, seeking an urgent hearing as redundancies were about to take effect.

The Employment Court focused on the interpretation and application of clause 10.1 of the collective agreement. This clause required TVNZ to support active staff participation in organisational development and changes to workplace practices, including involving staff and their union in the early stages of decision-making and business planning.

The Court found that TVNZ had not fully complied with these requirements before moving ahead with redundancies. The Court dismissed TVNZ’s challenge and made a compliance order requiring TVNZ to follow the participation process set out in the collective agreement within 20 working days. The Court noted that this process was more extensive than the general good faith consultation required by law.

If your business is party to a collective agreement, you must check for any specific consultation or participation requirements before making major changes like restructures or redundancies. These requirements may go beyond the general duty of good faith under the Employment Relations Act.

Failing to follow the process set out in the agreement can lead to legal action by unions, compliance orders, and delays to your plans. It is not enough to simply inform staff or consult after decisions are made. You must involve union members and their representatives early, share relevant information, and genuinely consider their feedback before final decisions are made.

Before announcing redundancies or major changes, employers should take practical steps to ensure compliance with both the law and any collective agreement. This reduces the risk of disputes and operational delays.

Key steps include early engagement with unions, clear communication, and keeping records of all meetings and correspondence. If in doubt, seek advice before making announcements or issuing redundancy notices.

The Employment Relations Act 2000 sets out the general duty of good faith in employment relationships, including consultation on major changes. However, where a collective agreement contains more specific requirements, those must be followed.

If an employer fails to comply, unions can apply to the Employment Relations Authority or the Employment Court for a compliance order. The Court can set a timeframe for compliance and, if necessary, delay redundancies or other changes until the process is completed.