Former bakery manager wins wages dispute

The ERA ordered Mr Carpenter's company to pay Ms Bauer more than $8000 in lost wages, $10,000 as compensation and nearly $700 in unpaid holiday pay. Photo / Thinkstock

A former bakery manager will be paid out almost $20,000 after a new owner reduced her wages by $4.50 per hour.

Moira Bauer had managed a bakery in Nelson for a year and nine months when the company that owned the bakery came under new ownership. After the ownership change, Ms Bauer took a claim that she was unjustifiably disadvantaged and dismissed from the position to the Employment Relations Authority (ERA).

Ben Carpenter, a chef with over 30 years' experience in hospitality, became the new owner of the bakery.

Ms Bauer had been earning $21 per hour and working at least 30 hours per week before the ownership change. She signed an individual agreement with Mr Carpenter that said she would remain as bakery manager with an agreement that role would be "status quo".

After a few weeks of observing how the bakery ran, Mr Carpenter took a more hands-on approach and began taking charge of the rosters and other tasks that Ms Bauer had previously managed. Ms Bauer's hours of work changed and were decreased.

Member of the ERA, David Appleton, said it was clear that there was a clash of personalities between Ms Bauer and Mr Carpenter, "for which both must hold some accountability," he said.

Mr Appleton said the difficult relationship the two had was evident in a conversation around Christmas time about Mr Carpenter looking for a new manager, but exactly how the conversation played out could not be agreed upon between the two parties.

Ms Bauer told the ERA that in January Mr Carpenter said he would take over more of her duties including stock rotation and coffee orders and that her pay would be reduced to $16.50.

He disputed this, but the ERA found on the balance of probabilities it was likely he said that.

Ms Bauer felt she had a choice to make, either accept the pay cut or leave the position, and she resigned.

By reducing her pay, her hours and duties, Mr Carpenter had constructively dismissed Ms Bauer, and it was unjustified, Mr Carpenter said.

Mr Appleton found that Ms Bauer was unjustifiably disadvantaged in her role when Mr Carpenter took away her rostering duties, when she was sent home early without being consulted and when the stock control duties were taken over by Mr Carpenter.

The ERA ordered Mr Carpenter's company to pay Ms Bauer more than $8000 in lost wages, $10,000 as compensation and nearly $700 in unpaid holiday pay.