“Employment: When the Relationship Goes Down the Gurgler”
In 2023, Veolia secured the contract to manage the Queenstown Shotover sewage plant. However, what followed was not just a smooth operation. Allegedly, several senior managers at Veolia faced unjust termination of employment, highlighting a deeper issue in the company’s culture.
It turns out that the wastewater plant wasn’t the only thing facing a serious clean-up.
A “Toxic Culture” at Veolia?
In early March 2025, the Employment Relations Authority (ERA) heard claims of a “toxic culture” at Veolia. One of the key issues? A senior manager was dismissed because his performance didn’t align with the company’s core values. But what does this really mean for employers and employees?
It’s important to understand that such a complaint is referred to as a Personal Grievance (PG). This legal avenue is available to employees who feel they’ve been treated unjustly during their employment.
A PG can be costly and time-consuming—often taking 12 to 18 months to reach a resolution, which usually involves an ERA hearing. And while the legal process drags on, both the employer and employee endure stress, uncertainty, and potential damage to the workplace environment.
When Employees Raise a Personal Grievance: What’s Your Role as an Employer?
If an employee raises a Personal Grievance, you as the employer must be given the opportunity to understand the grievance and address it.
If informal discussions and mediation through the Ministry of Business Innovation and Employment (MBIE) don’t resolve the issue, the next step is a formal investigation hearing with the ERA.
But here’s the hard truth: this process isn’t just emotionally draining—it can also be expensive. Even if you have insurance or pre-paid support services, these might not cover the full costs of resolving a PG, including settlement fees, lost productivity, and the strain it puts on your team.
What Went Wrong at Veolia?
At the heart of this case lies a clash of values and communication. The dismissed employee claims his frustration and stress were a result of being under-resourced and pressured by senior management. Allegedly, unreasonable demands triggered emotional responses that led to his use of “robust” language in the workplace, ultimately resulting in his termination.
For Veolia, defending against this claim is no small feat. Senior managers are pulled away from daily operations, just as the company is already facing intense scrutiny over the Shotover Wastewater treatment plant. It’s a classic case of reputational damage compounded by internal conflicts.
The Cost of a Personal Grievance: Who Wins?
No matter the outcome of this case, it’s clear that there are no winners. Even if the employee wins a settlement, the damage to the company’s operations, morale, and public reputation can be significant.
But here's the good news: you can prevent such situations before they spiral into full-blown grievances.
How to Prevent Personal Grievances: Proactive Steps for Employers
As an employer, your best line of defense is to create a healthy, open workplace environment where issues are addressed early. Here are some key steps to avoid personal grievances:
Live Your Company Values – Your employees should see these values in action every day. Lead by example.
Document Everything – Keep a clear record of job roles, company rules, communication protocols, and internal processes. Well-documented policies help avoid confusion and misunderstandings.
Communicate Regularly – Talk to your employees. Regular feedback and active listening can help you spot small issues before they become big ones.
Address Issues Early – Don’t wait for problems to escalate. Resolve them when they are still manageable.
Consult the Experts – If you're unsure about anything related to employment law, health and safety, or company policies, reach out for professional advice. It’s far cheaper and less stressful than dealing with a full-blown grievance later.
Protect Your Business: Get the Right Support
At EASI NZ, we specialize in providing expert advice on employment law, health and safety, and creating positive workplace cultures. Don’t wait for a problem to escalate—call us today to ensure your business is protected from costly personal grievances.
Visit us at www.easinz.co.nz for more information.
Why This Matters to You as a Business Owner
Personal grievances can drain your resources and damage your company's reputation. However, with the right systems and approach, you can prevent most issues before they arise. Investing in proactive employment practices will save you both time and money in the long run.
Key Takeaways:
Personal grievances can take months to resolve and can be very costly.
Open communication, clear documentation, and a focus on company values are essential for preventing grievances.
Get expert advice early to avoid costly and time-consuming disputes.
By creating a fair and positive work environment, you can avoid the stress of personal grievances and ensure that your employees remain engaged, productive, and loyal.
