Minister Criticized for Comments on Employment Relations Authority

The recent comments made by New Zealand’s Minister for Workplace Relations, Brooke van Velden, have sparked significant backlash, leading to calls for her resignation. Van Velden suggested that members of the Employment Relations Authority (ERA) operate under the misconception that “money grows on trees.” This assertion has drawn criticism from various stakeholders, including labor unions and political figures, highlighting the ongoing tension between governmental oversight and judicial independence.

In a response to the controversy, Attorney General Judith Collins reportedly engaged in discussions with Minister van Velden about the need for an independent ERA. Following their conversation, van Velden acknowledged the importance of maintaining the authority’s autonomy.

The ERA recently adjudicated a case involving WVS, a real estate and property management company, which emphasizes the authority’s readiness to enforce accountability among employees. The case revolved around Joanne Adlam, an office administrator who was found to have misappropriated funds.

Adlam began her tenure with WVS in 2003, handling critical responsibilities, including bond payments for tenants. Concerns emerged in August 2020 when it was revealed that a bond for a tenant had not been lodged, a situation Adlam attempted to conceal by deleting related communications. During a subsequent investigation, Adlam confessed to stealing money, claiming either $60,000 or $90,000. However, an independent financial review later uncovered that the actual amount misappropriated was substantially higher, at $881,240.96.

Following the investigation, WVS sought damages from Adlam, filing a claim for $869,112 in the ERA. The authority found that Adlam had fundamentally breached her duty of good faith, leading to an award in favor of WVS, including interest until the judgment is paid. This decision underscores the ERA’s commitment to holding individuals accountable for misconduct.

In light of this recent ruling, van Velden appointed four new members to the ERA, emphasizing a desire for a “better balance” of public and private sector experience. She expressed concerns that an excess of public sector backgrounds among ERA members could lead to a lack of understanding regarding the financial realities faced by employers.

The comments drew immediate rebuke from organizations such as the Council of Trade Unions (CTU) and the Public Service Association (PSA). PSA national secretary Fleur Fitzsimons labeled van Velden’s remarks as “improper,” arguing they interfere with the ERA’s independence. CTU president Richard Wagstaff went further, calling for Prime Minister Chris Hipkins to remove van Velden from her ministerial position, stressing the critical importance of safeguarding the impartiality of judicial bodies.

The potential politicization of judicial appointments raises concerns about the integrity of New Zealand’s legal system. Critics warn that if appointments become influenced by political agendas, it could lead to a situation similar to that of the United States Supreme Court, where justices are seen as extensions of the current government rather than impartial adjudicators of the law.

This situation highlights the delicate balance between governmental oversight and maintaining the independence of judicial entities like the ERA. As the debate continues, the implications for workplace relations and the broader legal landscape in New Zealand remain significant.