‘I was too trusting,’ says Crane
New Zealand master of menswear Murray Crane says a recent employment dispute with a former staffer has been one of the biggest learning curves in a 20-year career.
Crane, the founder of Crane Brothers, was ordered to pay Jordan Gibson $28,000 in costs and wage arrears, after the Employment Relations Authority found the former employee was dismissed without notice. Gibson was hired as creative director of Auckland outlet store Gubb & Mackie in 2015, and given a 10 per cent shareholding. The business failed to meet sales targets and went into liquidation in 2017.
In March 2016, Gibson agreed to be paid via drawings – money taken by a shareholder in a business on which tax still has to be paid – rather than a salary, which is received with tax already paid.
Crane said he took the change to mean that Gibson was no longer classed as an employee but Gibson said he was only told it was a change that would benefit the company, which was having cashflow problems, and would have no affect on him.
From about September 2016 to February 2017, Gibson’s pay was sometimes delayed or short as Crane, the sole director of the company, juggled limited finances to pay staff, suppliers, rent and other business costs.
By early March, Crane began winding down the business which he described as insolvent. By the end of that month, Crane told Gibson ‘‘there is no requirement for you to be at work’’ as the store would close the next day.
Last month, the Employment Relations Authority rejected the idea that Gibson became a working shareholder, not an employee, in 2016. It ruled Crane had breached Gibson’s employment contract by failing to correctly pay his wages, holiday pay, KiwiSaver contributions and give notice of termination.
Crane and Gibson are now in settlement negotiations.
Crane said, having worked in the retail industry for more than two decades, he felt he had it all figured out. ‘‘I thought after 20 years that I can take whatever’s thrown at me. Being in business for a while has probably tripped me up here. I was operating in an environment I thought I knew quite well. I’ve never had a hostile environment around employment.’’
Gibson said he was happy with the authority’s ruling as he always thought of himself an employee. ‘‘I’m looking forward to going forward with my life. I can start to move on and focus on my business,’’ he said.
Gibson started streetwear brand Check Downtown at the end of 2017.