When the CEO of a newly formed council resigned 11 months into the job, questions were raised around allegations of a toxic work environment and being “ghosted” by councillors and the mayor.
Now the Employment Relations Authority (ERA) has found both parties responsible for the breakdown in work relationships.
Blair King was appointed CEO of the Far North District Council on March 21, 2022, responsible for acting as the employer for all council employees.
But the relationship between King and newly appointed mayor Moko Tepania began to strain following the local body elections in October 2022.
This tension escalated after a disagreement over the request by Tepania to appoint a strategic adviser, which King declined.
The relationship between King and Tepania came to a head during a meeting on November 3, 2022, in Kaikohe. The discussions became heated, and King alleged Tepania asked for his resignation, a claim the council disputed.
King maintained Tepania’s suggestion to “just leave” implied his dismissal, while Tepania and other councillors argued no formal resignation occurred at the meeting.
King told the Employment Relations Authority he felt isolated and raised a personal grievance on November 25, 2022, citing unjustified disadvantage.
He alleged he was excluded from critical decisions and when he requested notes and information from the confidential meeting claimed he was “ghosted”.
The council agreed to mediation, but mediation was postponed for various reasons, including the impact of Cyclone Gabrielle.
King argued he had been constructively dismissed because of the council’s actions and also alleged several instances of unjustified disadvantage, claiming the council’s behaviour created a toxic work environment that led to his resignation.
The council rejected King’s claims and filed a counterclaim alleging he had breached good faith obligations by failing to properly engage with the council.
As a result of the council’s response to King’s grievance, King alleged he suffered from stress and provided a medical certificate.
On February 23, 2023, King formally resigned and advised he would be taking one month’s sick leave up until his three-month notice date of May 10 but between that time issues were raised around his leave entitlements.
While he was on sick leave, images of King surfaced performing volunteer work for the New Zealand Search and Rescue taskforce for Cyclone Gabrielle. The council questioned King on his involvement while on sick leave but took the matter no further.
When he requested further sick leave the FNDC declined, which King claimed was an unjustified disadvantage.
An ERA investigation meeting was held in April and authority member Alex Leulu released their decision finding issues on both sides.
The ERA found the council’s decision not to pay King further sick leave was reasonable in that the council had to ensure ratepayers’ money was spent wisely.
King’s claim for a breach of good faith failed with the ERA finding that the decision not to engage with King at the councillors’ meeting was a decision made by a newly formed council looking to do the right thing.
“This was not a deliberate attempt to undermine Mr King. For this reason, Mr King’s allegations of a breach are dismissed,” Leulu said in the decision.
The ERA found the council’s claim against King for a breach of good faith was also unsuccessful and King’s actions reflected the tense relationship between himself and the newly formed council.
However the ERA sided with King and found while he did not formally resign during the Kaikohe meeting, he was subjected to an unjustified disadvantage.
The authority also found the council’s failure to engage with King after the meeting left him in a state of uncertainty and was unreasonable.
Leulu said the lack of communication caused King distress, particularly as decisions were made without his involvement, even though his role was critical to the council’s operations.
“Given the seriousness of the allegations of what had occurred during the Kaikohe meeting and the focus of the meeting being about Mr King’s resignation, Mr King’s resignation should have been reasonably foreseeable. For these reasons, Mr King was constructively dismissed by the council,” the decision said.
A representative from the mayor’s office said the council respected the authority’s process but was considering options, including for appeal, and had no further comment at this time.
King was contacted for comment but had nothing further to add.
Remedies have been reserved for release at a later date.
Findings on unjustified disadvantage:
Kaikohe meeting: King did not formally resign during the heated meeting with mayor Tepania. The council’s actions post-meeting were deemed not reasonable, causing King distress.
“Ghosting” allegations: The council’s decision to not engage with King after the Kaikohe meeting was found to be unreasonable.
Information request: The council’s delayed response to King’s information request was reasonable under the Privacy Act 2020.
Sick leave: The council’s actions regarding King’s sick leave and additional leave request were found to be reasonable.
Constructive dismissal: The council’s delay in addressing King’s personal grievance and postponing mediation contributed to his distress. The council’s actions were deemed to have caused serious damage to the trust and confidence in the employment relationship, leading to King’s resignation.
Breach of good faith: The council’s actions post-Kaikohe meeting were not a deliberate attempt to undermine King. King’s breach of good faith claims were dismissed.
Council’s counterclaim: The council’s claims that King breached his obligation of good faith were dismissed.
Shannon Pitman is a Whangārei-based reporter for Open Justice covering courts in the Te Tai Tokerau region. She is of Ngāpuhi/ Ngāti Pūkenga descent and has worked in digital media for the past five years. She joined NZME in 2023.
