The Court of Appeal has reversed an Employment Court ruling that found Mana Coach Service of Wellington was correct in not paying employees who had given notice of strike action, but did not actually strike.
The New Zealand Tramways and Public Transport Union had given notice that some Mana bus drivers would be on strike on 1 August, 2007, but cancelled the action minutes before it was due to start.
Mana management refused to pay the wages because alternative drivers had already been arranged.
The Employment Court found the union acted in bad faith by deliberately delaying the withdrawal of its strike cancellation.
However, the Court of Appeal has found the company did not argue its employees had acted in bad faith, so the judge erred in making a ruling on those grounds.
The court ruled wages must be paid to the employees and the case has been referred back to the Employment Court.