Union seeks apology from MBIE amid six-figure legal costs
The Ministry of Business, Innovation, and Employment (MBIE) racked up more than $102,000 in legal fees to defend its flexible working policy that a union previously argued violated a collective agreement, according to reports.
Documents reported by Newstalk ZB show MBIE spent $102,451.50 on external legal representation and internal legal consultation after the Public Service Association (PSA) filed a challenge with the Employment Relations Authority (ERA) in July last year.
The ERA action targeted MBIE's May 2025 flexible working policy, which the PSA argued was inconsistent with its "flexible by default" collective agreement obligations.
When the dispute first erupted, MBIE chief people officer Jennifer Nathan told HRD the policy was not a breach of the agreement, saying its intent was to "create greater clarity and consistency on how we apply, agree, and review flexible working to contribute to a high-performing public service."
The updated policy required employees to have a formal agreement in place for any regular or ongoing flexible work arrangement, replacing what had been an informal allowance of up to two days per week working from home.
The PSA disagreed from the start.
"MBIE can't just change existing agreements which are protected under the collective," PSA national secretary Fleur Fitzsimons said at the time.
The union also raised equity concerns, noting that most impacted employees were women and that...
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