Monday, November 07, 2005

Further Reduced Property Rights in New Zealand

The Employment Relations Authority (who the hell are they anyway) has decided that Susan Woods' 12 month fixed term contract cannot be terminated by the contracting party (TVNZ) without cause.

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".


Extraordinarily the Authority said

"...her present salary of $450,000 will expire on December 31 and a new salary must be renegotiated between the parties."


So how does that work? Wasn't an inability to agree a new salary the root of the problem?

So what does this ruling mean for employers? All employees no longer what the term are employed indefinitely? All I can think is here is another Government agency interfering in normal commercial relations. This will do nothing to make it easier to employ people. Rather the opposite.

I'll bet Judy Bailey is dusting off her fixed term contract and contacting Wild Bill Ralston to say she's staying - in case he hadn't caught up with recent matters TVNZ was not able to simply not offer her a new contract as they tried recently...

Friggin' amazing.

I'm waiting for dear old Philip Sherry and Craig Little to present themselves for duty as well. maybe Dougal Stephenson can get a rerun as well.

Good news Bill, your announcing talent pool just got larger!

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