TVNZ chief executive Jodi O'Donnell. Photo / Dean Purcell
TVNZ chief executive Jodi O’Donnell has formally apologised to workers for the way the state broadcaster bungled the way it rolled out its cost-cutting plans, including proposals to axe staff and high-profile shows.
Referring to a recent Employment Court decision which found TVNZ to be in breach of its unioncollective contract - by failing to properly consult workers ahead of the proposed job and show cuts - O’Donnell said ongoing change was essential and it was important that leaders and workers had a “positive working relationship”.
“I want to take this opportunity to formally apologise for this breach and acknowledge the uncertainty this has caused,” she said in the email to E tū union members last week.
“The executive team fully accepts the court’s decision and has confirmed to the union that we are ready to work through the next steps.”
A copy of the email has been obtained by Media Insider.
The Employment Court decision, delivered two weeks ago, is expected to impact TVNZ heavily, with extra costs in the hundreds of thousands of dollars.
For starters, it has to retain and pay 17 staff - who it had earlier proposed and confirmed would be made redundant - for a likely additional two to three months while the company and union work through a new consultation process, as demanded by the collective contract.
Other union staff who have already left the company may be entitled to compensation payments and could take personal grievances, says E tū.
On top of that, TVNZ hired a King’s Counsel to help pursue an appeal through the Employment Court, after the Employment Relations Authority had earlier ruled the state broadcaster was in breach of the collective contract.
TVNZ last week announced it was expecting a $28m-$33m operating loss this financial year - around double what it had previously been anticipating.
The company has also indicated it will need to make more cost cuts this year.
In her email to union workers, O’Donnell said the executive team had reviewed and considered the Employment Court judgement, and “our decision-making”.
“... it’s important to me that I provide you with an explanation as to why we are where we are.
“The executive team progressed the matter to the Employment Court as we genuinely felt the process we had run, which was consistent with previous consultation processes, had met our obligations under the collective agreement.
“We also felt that the Employment Relations Authority’s determination had not given sufficient clarity over how we could comply with Clause 10.1.1 going forward and we required further guidance.”
O’Donnell said in her letter that the executive team needed to make “extremely tough calls” in a challenging environment.
“It was important that we had clear guidance on compliance to avoid any further uncertainty, which we now have from the Employment Court. The executive team has listened and taken on these lessons and, as a result, change processes will be different in the future to ensure compliance with the collective agreement.”
It is understood new discussions, in line with the collective contract, have started between TVNZ and E tū.
“The court confirmed how TVNZ is to remedy the breach,” O’Donnell told workers.
“We are committed to working closely with you and the union as the court has identified to ensure that TVNZ acts in a way that is consistent with its obligations in the collective agreement.
“As you are aware, TVNZ is in the early stages of a multi-year transformation, and further change is on our horizon. Change is essential if we’re to secure a sustainable future for this organisation.
“Crucial to the success of our transformation programme is our ability to have a positive working relationship.
“We have an obligation to New Zealand audiences, our shareholder, our advertisers, and of course our people to move forward constructively, and deliver on TVNZ’s purpose and mandate, and that is what the executive team and I intend to do.”
A TVNZ spokeswoman reiterated several of the points in the email and added: “These are personal employment matters and TVNZers have a right to privacy, so we won’t be commenting further.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.