An Auto Media Group publication Sunday 8 November 2026
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Howick and Eastern defending its approach to ERA

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Howick and Eastern Buses general manager Sheryll Otway says the company will defend its approach to the two cases the First Union is filing against it in the Employment Relations Authority.

Representing drivers at Howick and Eastern Buses, First Union says it is filing two cases against the bus company for “serious and sustained” breaches of the Employment Relations Act.

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It is seeking costs and $2 million in penalties.

Howick and Eastern general manager Sheryll Otway told DIESELtalk this morning that the company will be defending its approach.

“We acknowledge the Union has a right to do what they are doing,” says Otway. “But we don’t feel that we have breached any rules.”

“The law is crystal clear – you must negotiate in good faith and you must not undermine collective bargaining. But Howick and Eastern Buses has repeatedly breached that obligation,” says FIRST Union organiser Rudd Hughes.

The union is alleging the company violated its duty to bargain in good faith after offering individual union members cash enticements in exchange for signing an individual employment agreement that removed their right to pay extra for working on non-rostered days and Sundays.

Under section 32(1)(d)(ii) of the Employment Relations Act, an employer cannot negotiate directly or indirectly with individual union members while collective bargaining is taking place.

“The company’s actions amount to a far-reaching breach of employment law. We’ve tried to reason with them; our members have even gone on strike, but each time the company has doubled down,” says Hughes

He also alleges after enticing some union members to sign individual employment agreements the company also unilaterally changed rosters to lift hours for drivers on the new individual contracts and reduce hours for drivers on the collective contract.

“This sort of discrimination will not be tolerated. Auckland Transport pays Howick and Eastern Buses to run bus services, not union-busting campaigns,” says Hughes.

The union is seeking costs plus a $20,000 penalty per union member who the company attempted to bargain with directly.

 

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