06 October 2016

Employment: AFFCO v. Meat Workers

Seasonal workers returning from the off-season can claim the benefits of long-running employment terms when facing hard bargaining at the start of a new season the Court of Appeal decided, ruling against attempts by AFFCO to break the “seniority rule” giving priority each season to longest serving meat workers.  
AFFCO unlawfully locked out meat workers at its Rangiuru, Imlay, Manawatu, Wairoa, Moerewa and Horotiu meat processing plants when it attempted to force each returning seasonal worker to sign a 17-page individual employment contract at the beginning of the 2015 season.  Individual contracts were intended to replace an earlier collective agreement which required re-employment each season to be based on seniority.  AFFCO was reserving the right to pick and choose.
The Court of Appeal said the previous collective agreement created a right for meat workers to apply for re-employment next killing season with a correlative duty on AFFCO to offer re-employment on certain conditions, including an obligation to hire on seniority.  Refusing to rehire unless workers accepted new terms inconsistent with those rights amounted to a lockout, the Court ruled.  There is nothing unusual in contracts imposing future obligations on employees or employers, the Court said.  In employment contracts, restraints of trade and obligations of confidentiality are common examples.
AFFCO v. Meat Workers Union – Court of Appeal (6.10.16)

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