TVNZ ordered to enter mediation with union
TVNZ has been ordered to go into mediation with its union after several shows were axed and redundancies were proposed.
In March, it was announced that around 68 jobs were set to be lost across TVNZ under a proposal that axed shows such as Sunday, Fair Go, Midday and Tonight – and also made changes to Re:News.
Yesterday afternoon, the Employment Relations Authority ordered the broadcaster to go into mediation with E tū union.
“The Authority finds that TVNZ has breached cl 10.1.1 of the collective agreement," the ruling stated.
If after mediation matters aren’t resolved, an order would be made against TVNZ to comply with their collective agreement.
The ruling also brings to light new details about the internal process TVNZ went through before making the decision.
According to the document, in mid-August 2023 the company held an “Ideas Week”, which was a nationwide, internal, brainstorming session.
Close to 2100 ideas were generated during that session, with the common theme being that the management team was too big. Around 30% of manager roles were reduced as a result.
Of all the entries, the ruling found that only four related to the stopping of Midday and Tonight – while none specifically targeted Fair Go or Sunday.
First discussions by the executive group of cancelling shows came in December 2023.
The month prior the group had decided it needed to reduce its labour cost by a total of $10 million – the executive team cuts had only resulted in a $3.7m reduction.
E tū negotiation specialist Michael Wood said the decision was a huge win.
“We are really happy, but not surprised, that the Authority reached the same conclusion as us – that the process was a clear breach of the collective agreement.”
The union negotiated for input in the change process, he said, and had TVNZ gone with that method, a more favourable option for everyone may have been reached.
“Instead, we’ve had to endure this messy and incomplete consultation process, and the company has already steamed ahead with their plans to cancel our important news and current affairs shows.”
When the changes were announced, TVNZ chief executive Jodi O’Donnell sent an email to staff outlining why changes were needed.
“As our interim results announcement last week illustrated, tough economic and market conditions are impacting our revenue performance, and we need to make some difficult choices to ensure TVNZ remain sustainable,” O’Donnell said in the email.
“The leadership team will share proposals which could result in a net reduction of up to 68 roles from across all business areas.
“The exec team has been focused on reducing costs over the last 12 months,” the email continued. Unfortunately we’re now at the point where we need to reduce the size of our team to bring our costs more in line with our revenue and ensure we’re the right shape and size as we continue to transform to meet the needs of viewers in a digital world.”
TVNZ recently reported a $16.7m loss in six months, including a $12.2m impairment.