Seafood company Talley's Group has had to stump up more than $70,000 to two fishing crew members after they were unjustifiably sacked over unsubstantiated drug claims.
The Employment Relations Authority (ERA) ruled Damien Burtton And Karl Browne were unfairly dismissed, the Nelson Mail reported.
But company director Andrew Talley has defended the action and said employment law was out of touch with the growth and extent of drug use in the workplace, and the company would continue to do what was necessary to keep the vessels drug-free.
Last year a drug search dog singled out the bags of six crew members, including Mr Burtton and Mr Brown, from the deep sea fishing vessel Amaltal Enterprise, which was due to sail from Nelson.
After being interviewed by a private investigator, Mr Burtton was indefinitely suspended without pay and escorted off the vessel. He received a disciplinary letter, a disciplinary meeting was held on June 23 and he was dismissed by letter two days later.
Mr Browne was also suspended without pay and did not have his representative with him during a disciplinary hearing. He was given the option of resigning or being dismissed for serious drug-related misconduct.
Mr Browne said he reluctantly resigned.
ERA member Rachel Larmer said the explanation Talley's general manager Tony Hazlett gave for suspending the crew members was unsatisfactory.
"He said 'we heard people naming them as P users, using P to sleep with people and we had the dog indication'. Talley's never had any evidence alleging Mr Browne or [another crew member] has used P to sleep with people, so it was unfair and misleading for him to suggest it did."
Talley's had approached the matter with a closed mind, breached contractual obligations, breached its good faith obligations and failed to comply with the principles of natural justice, she said.
The ERA ordered the company to pay Mr Browne $20,000 compensation, plus lost pay and benefits, and to pay a penalty to the Crown of $2500 for breaching good faith obligations.
It was ordered to pay Mr Burtton $35,697 in lost pay and yet to be quantified lost benefits, plus $18,400 compensation.
- NZPA
Talley's pays thousands for unfair sackings
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