Minister Criticized for Remarks on Employment Relations Authority

The recent comments made by New Zealand’s Workplace Relations Minister Brooke van Velden regarding the Employment Relations Authority (ERA) have sparked significant criticism. Van Velden suggested that some members of the ERA operate under the mistaken belief that “money grows on trees,” a statement that has drawn ire from various labor organizations and prompted a response from Attorney General Judith Collins.

Following her comments, Collins spoke with van Velden, who later confirmed that both agree on the necessity of maintaining an independent ERA. This discussion comes in light of a recent case involving WVS, a real estate and property management company, which highlights the seriousness of employee accountability in financial matters.

Case of Misappropriation and Accountability

The case centers on Joanne Adlam, who was employed by WVS as an office administrator since 2003. Adlam, a trusted member of the team, was responsible for handling bond payments from tenants. Concerns arose in August 2020 when the Bond Centre indicated that it did not hold a bond for a tenant—a bond that should have been lodged by Adlam. In an apparent attempt to conceal her actions, she deleted communications regarding the issue from the property manager’s inbox.

The situation escalated when the general manager confronted Adlam. During this meeting, she reportedly admitted to stealing money, stating that she had taken either $60,000 or $90,000. Following an internal investigation, her employment was terminated, and she agreed to offset her holiday pay against the amount owed, claiming she planned to sell a jet ski valued at $14,000.

However, a subsequent independent financial investigation revealed that the actual amount missing was significantly higher, totaling $881,240.96. WVS sought compensation for this loss through the ERA, claiming $869,112—the actual financial loss minus the holiday pay withheld. The authority found that Adlam’s actions constituted a significant breach of her duty of good faith and an implied obligation to act with integrity concerning WVS’s assets.

Reactions to Minister’s Comments

Despite the ERA’s ruling, van Velden’s remarks have prompted strong reactions from labor representatives. The Council of Trade Unions (CTU) and the Public Service Association (PSA) have called for her to apologize, with PSA National Secretary Fleur Fitzsimons stating that her comments represent “improper” interference with the ERA’s independence.

CTU President Richard Wagstaff has urged Prime Minister Chris Hipkins to take action by removing van Velden from her position, emphasizing the importance of respecting the independence of judicial bodies. Wagstaff remarked, “It is of the utmost importance that ministers respect the independence of judicial bodies and not politicize them by saying they expect members they’ve appointed to deliver outcomes that suit their political agenda.”

This situation raises concerns about the potential politicization of judicial appointments in New Zealand, a fate that has befallen other jurisdictions, such as the United States, where judicial positions have become heavily influenced by political considerations.

The controversy surrounding van Velden’s statements underscores the delicate balance between political oversight and the autonomy of judicial bodies. As New Zealand navigates these tensions, the implications of such political discourse could have lasting effects on the integrity and independence of its judicial appointment processes.