TVNZ lawyer Paul Wicks KC says the broadcaster's dire financial situation required labour savings of $10 million. (file image) Photo: RNZ/Calvin Samuel
TVNZ argues it did not breach its collective agreement when it cancelled several programmes earlier this year.
On Tuesday, the broadcaster appeared in the Employment Court in Auckland to appeal a ruling by the Employment Relations Authority that it failed to consult with staff before announcing redundancies.
Union E tū said a clause in its contract with TVNZ specified employees needed to be involved in workplace changing decisions.
"[Our interpretation is that] when there is an issue that's going to require workplace change the parties sit together to find a solution which is then put to TVNZ management," E tū lawyer Simon Mitchell KC said.
"[They] attempt to reach agreement and make recommendations - not decision-making but recommendations - that TVNZ is required to take as far as possible."
TVNZ lawyer Paul Wicks KC said the broadcaster's dire financial situation required labour savings of $10 million.
"Financial results signalled to TVNZ that it needed to consider redundancies and other cost saving measures," Wicks said.
"TVNZ's total cost exceeded revenue in the 2023 financial year, and projections were worse for 2024."
In November 2023, TVNZ leadership were told that the company needed to find $10m in labour savings.
Mitchell said it was unfair staff were not made aware of the job cuts until March 2024.
"What is very clear is that rather than sit down with staff and make that information known... TVNZ at that point went behind closed doors, shut the union out of the process... until staff were advised of the proposals on the 8th of March."
Members of TVNZ's leadership were called to give evidence, including news and current affairs executive editor Phil O'Sullivan.
He said TVNZ's revenue had continued to decline following the restructure and further cuts were likely.
"Compared to 2023 the revenue has been lower... it has continued to go in the wrong direction," he said.
"As a result, it is looking at further cost-cutting measures to implement in 2024."
Although Fair Go and Sunday were technically profitable, they were not profitable enough, he said
"While they were positively yielding, it doesn't mean they were making enough to offset the indirect costs.
"For example, the Sunday team didn't pay rent at the TVNZ building."
E tū lawyer Simon Mitchell said employees had been kept in the dark about TVNZ's financial situation, but O'Sullivan said that was not true.
"We had frequent meetings about TVNZ's position. I'm not sure how much more I could have done to make people aware," he said.
"If you didn't know [TVNZ was struggling], you simply weren't paying attention."
He said it was unreasonable for staff to expect to be consulted before a proposal had been created.
"We have a responsibility to make decisions about the direction of a business to ensure its a success," he said.
"In my opinion, it would be irresponsible if we didn't have a proposal [before engaging with staff]."
TVNZ people and culture general manager Antoinette Golden said the broadcaster received and responded to feedback from staff in the weeks after the announcement of the proposal on 8 March.
"For example, the Fair Go team put forward a proposal for digital content to be produced under the Fair Go brand [and] the studio operations team suggested changes to shifts as a cost-saving measure," she said.
"In response to feedback, TVNZ created a team focused on current affairs, this involved four new roles."
E tū negotiation specialist Michael Wood said that was not good enough.
"Members were invited to respond to those proposals separately, [for example] the consultation with Fair Go was with the Fair Go staff, there was no opportunity to discuss cost-savings generally," he said.
"Staff expressed considerable concern that there hadn't been earlier discussion of the company's [financial] position."
Wood said he believed TVNZ was attempting to avoid its obligations under the collective agreement.
"It is important for members to have confidence that TVNZ will engage properly."
Former Sunday field producer Delwyn Byast said he had no idea the show was at risk until it was too late.
During a meeting with head of news Phil O'Sullivan in which he referenced TVNZ's financial position, "when we asked what we could do to help, he said nothing and to keep doing what we're doing", Byast said.
"I had no indication that entire shows as significant a Sunday and Fair Go could be at risk."
Byast was looking at purchasing a house when he learned he and his team would be made redundant.
"I was so confident about Sunday's place in the newsroom that last year my partner and I were making multiple offers to buy our first home," he said through tears.
"I wouldn't have put my family in more than a million of dollars of debt if I knew my job was at risk."
The hearing will resume Wednesday morning with evidence from TVNZ chief operating officer Brent McAnulty.
