TVNZ directors' pruning effort proves costly

A briefing paper given to TVNZ's board prior to Susan Wood's employment hearing reveals it had the option of stopping her case going to the Employment Relations Authority by approving a higher salary.

Wood was off work last night "under doctor's advice", according to a statement issued by her lawyer, Mai Chen.

It is understood Wood was given a doctor's certificate because of the toll the ongoing negotiations and publicity over her salary has taken.

However, as a matter of course Mark Sainsbury fills in for Wood every second Friday night. Last night was one of those scheduled nights off.

The confidential briefing paper shows TVNZ head of news Bill Ralston and human resources' Sidney Smith presented the board with options, including resolving the impasse by offering Wood $450,000 in a bid to keep her and steer clear of damaging publicity.

But the board decided to let Wood's case at the Employment Relations Authority go ahead, despite the paper's advice that the mediator had warned the contract was problematic and possibly would not withstand legal scrutiny.

Wood is still negotiating with TVNZ after an ERA decision that the fixed term of her salary was ineffective so TVNZ could not drop her salary from $450,000 to $350,000 without her consent.

Wood took legal action against TVNZ after she was offered $350,000 to front Close Up next year - a 22 per cent salary cut.

On the advice of Ian Fraser, Mr Ralston and Ms Smith had initially asked the board to approve up to $350,000 in September.

Anticipating Wood would be unhappy, Mr Fraser reserved the right to return to the board if negotiations faltered.

Mr Ralston was criticised by ERA member Leon Robinson for not revealing he had this further bargaining option, instead presenting her with an ultimatum.

The board has to authorise any salary offer of over $300,000 and had agreed to cap Wood's salary negotiations at $350,000 as requested by Mr Ralston and Ms Smith on the advice of Mr Fraser.

It is understood the board indicated it would agree to $450,000 if there was no other option. But it decided to let ERA hearing go ahead, because TVNZ's legal advice was that it had a good chance of success.

Neither the board nor TVNZ would comment last night, saying it was inappropriate to comment on board decisions while TVNZ management was trying to reach agreement with Wood.

The briefing paper was discussed in a board members-only meeting on Friday October 28, days before the November 3 hearing. It was the same meeting after which Mr Fraser resigned, citing board interference in management issues because of their request he take over all high-profile presenters' negotiations following the handling of Wood's case.

Meanwhile, negotiations subsequent to the ERA finding appear to have stalled.

Wood was still hoping for a "quick resolution", Ms Chen said, but issues of trust and confidence between Wood and TVNZ had not been worked out.