Agency loses employment row

Ogilvy managing director Greg Partington. Photo / Brett Phibbs

A former executive at one of New Zealand's top advertising companies has been awarded almost $350,000 after winning an employment case.

Margaret Whitten went to the Employment Relations Authority after a row about the way her 15 years at Auckland-based Ogilvy New Zealand ended in 2008.

The former deputy managing director claimed constructive dismissal and redundancy after being offered a directorship - only to have the offer withdrawn when she complained about a replacement being appointed to her existing role before she'd accepted the new one.

Authority member Marija Urlich ruled Ogilvy had "backed Whitten into a corner" and her position no longer existed under the new structure.

She ordered Whitten - who was on a salary of $209,000 - to be paid $193,333 in lost wages, $128,615.38 in redundancy compensation, $15,000 for hurt and humiliation and $6344.60 in lost benefits.

Whitten, who lives on Auckland's North Shore, refused to comment yesterday.

Ogilvy managing director Greg Partington refused to be interviewed, but through spokesman Bill Ralston said the company planned to appeal.

The row began when on July 8, 2008 when Whitten received an email from Partington informing her another person was being hired as deputy managing director.

There was "no pressure" for her to relinquish her title, Partington wrote, "but obviously, it would be preferable if you did".

As compensation she was offered a directorship and asked to consider the proposal.

Eight days later the directorship offer was withdrawn after Whitten raised concerns about staff learning of the appointment of the new deputy managing director before she had made a decision.

Previously unmentioned "performance concerns" were raised in the same email withdrawing the offer.

Whitten resigned through her legal representative on July 30.

Urlich agreed she had been constructively dismissed and made redundant.

Ogilvy's clients include Sanitarium, Kiwibank, Coca-Cola Amatil and the New Zealand Rugby Union.

Through Ralston, Partington said: "Our legal advice is that the decision from the authority member concerned is flawed and we are contemplating an appeal.

"For that reason I can make no further comment on the issue."