Lyttelton Port Company Limited v Maritime Union of New Zealand

Lyttelton Port Company Limited (LPC) introduced a health monitoring policy for employees in safety-sensitive roles. The Maritime Union of New Zealand (MUNZ) objected, arguing that the collective agreement governed health monitoring and LPC could not impose its policy without union agreement.

LPC cited health and safety obligations and recommendations from a Transport Accident Investigation Commission report after a port tragedy. The dispute centred on whether LPC could require union members to submit to health checks under its new policy, or if this required union consent.

The case highlights the tension between an employer's statutory health and safety duties and the contractual rights of employees under a collective agreement. LPC argued that its policy was necessary to meet its obligations under the Health and Safety at Work Act 2015 (HSWA) and to address risks identified by external investigations. MUNZ countered that the collective agreement set out the procedures for health monitoring and that any new policy could only be introduced through negotiation and agreement.

This dispute is relevant for any business considering health monitoring policies, especially where employees are unionised or covered by collective agreements. It shows that even well-intentioned policies aimed at improving safety must be developed in partnership with employees and their representatives.

The Employment Court found that LPC’s health monitoring policy was inconsistent with the collective agreement covering MUNZ members. The Court confirmed that the policy could not be imposed unilaterally and that any variation to employment terms required union agreement.

The Court also rejected LPC’s argument that health and safety law or industry comparators justified the policy. It found that the policy was not a lawful or reasonable instruction, especially as it infringed on fundamental employee rights and went beyond workplace hazard monitoring.

Specifically, the Court noted that the Health and Safety at Work Act 2015 (HSWA) does not override collective agreements or allow employers to impose policies beyond what is agreed. The Court also referenced WorkSafe guidelines, which distinguish between health monitoring for workplace hazards and general wellbeing checks.

LPC’s policy included tests such as cholesterol checks and fitness assessments, which were not directly related to workplace risks and therefore fell outside the scope of lawful health monitoring under HSWA and the collective agreement.

The Court dismissed LPC’s challenge and upheld the Authority’s determination. MUNZ was awarded costs. The outcome reinforces the principle that collective agreements are binding and that employers must respect the negotiated terms, even when seeking to address health and safety concerns.

If your business operates under a collective agreement, you cannot introduce new health monitoring policies without negotiating with the union. Even if health and safety concerns are genuine, policies must align with the agreement and statutory requirements.

Review your collective agreements before making changes to health monitoring or safety procedures. Consultation and bargaining are essential, and unilateral action risks legal challenge and reputational harm.

For example, if your agreement specifies annual hearing tests for employees exposed to noise, you cannot add unrelated tests such as cholesterol screening without union consent. Even if industry standards or external recommendations suggest broader health checks, these must be negotiated and agreed upon. Courts will look closely at whether the policy is directly related to workplace hazards and whether the process respects employee rights under the agreement.

Employers should also be aware that health monitoring policies must be reasonable and proportionate. Overly broad or intrusive policies may be challenged, especially if they go beyond what is required to manage workplace risks.

Employers should take practical steps before introducing health monitoring policies. Start by reviewing the relevant collective agreement and identifying any clauses about health and safety or health monitoring. Engage with union representatives to discuss proposed changes and seek agreement.

Ensure any policy is specific to workplace hazards, not general health or wellbeing. Follow WorkSafe guidelines and avoid tests unrelated to workplace risks, such as cholesterol checks or general fitness assessments.

• Check the collective agreement for existing health monitoring provisions.
• Consult with union representatives before drafting any new policy.
• Limit health checks to those required for managing workplace hazards (e.g., hearing tests for noisy environments, lung function tests for exposure to dust).
• Document the consultation process and any agreements reached.
• Review WorkSafe guidelines and industry standards for health monitoring.
• Communicate clearly with employees about the purpose and scope of any health monitoring.

By following these steps, employers can ensure their policies are lawful, reasonable, and respectful of employee rights. This approach also helps build trust and cooperation with employees and unions, reducing the risk of disputes.

The Health and Safety at Work Act 2015 (HSWA) sets out employer duties to manage workplace risks, including health monitoring where employees are exposed to hazardous substances. However, HSWA does not override collective agreements or allow employers to impose policies beyond agreed terms.

WorkSafe guidelines clarify that health monitoring should target workplace hazards, not general wellbeing. For example, monitoring hearing loss in noisy environments or lung function in dusty workplaces is appropriate. General health checks, such as cholesterol screening or fitness assessments, are not required unless directly linked to workplace risks.

Employers should also consider relevant industry regulations and the terms of any collective agreement before introducing new policies. In some industries, specific health monitoring requirements may be set by legislation (e.g., Policing Act 2008 for police, Maritime Transport Act 1994 for seafarers), but these do not apply to all workplaces. Always check the legal framework and consult with unions before making changes.