Photo: RNZ
A senior analyst who says he was unjustifiably dismissed from the Reserve Bank after he made a protected disclosure to the board chair has lost his bid for interim reinstatement.
Stephen McCormack has taken his case against the central bank to the Employment Relations Authority.
He started in his role there in January 2022 and was dismissed in late 2024.
The Reserve Bank said it had acted fairly and reasonably and in good faith throughout his employment.
A full investigation of McCormack's claims is yet to be held but the authority ruled first on an application for interim reinstatement.
Authority member Andrew Gane noted that during his period of employment, McCormack had been subject to two informal action plans, a disciplinary process in relation to his behaviour towards a manager and a formal performance improvement plan process, with three stages.
But McCormack argued that some of the action taken by the bank was in retaliation to a protected disclosure he made to the board chair in January 2024.
It was at the end of that month that it was proposed that McCormack be put on a formal performance improvement plan.
The bank said the relevant manager did not know about the protected disclosure at that point.
In February, McCormack lodged a personal grievance with the Employment Relations Authority with mediation set for March. But he cancelled that and in April told the bank he had withdrawn that claim.
His performance improvement plan began on 13 February last year.
A month later, he was given feedback and a written warning.
A second review period followed and a second written warning. He was then put on a third plan, which ultimately led to his position being terminated.
On 11 December, McCormack lodged a second amended statement of problem with the authority for unjustified dismissal and lodged an application for interim reinstatement.
He said the performance management process was "predetermined scam" in which the goalposts were shifted with the intention of decreasing his performance.
Gane said McCormack argued the Reserve Bank did not look at options other than dismissing him.
"Mr McCormack emphasises the fact that he was 'outed' for having made a protected disclosure, and referred to as a 'timewaster', was proof of the retaliatory nature of RBNZ's actions within the context of the procedure it undertook in terminating his employment.
"RBNZ submits that at no stage did it retaliate or threaten to retaliate against the applicant because of any concerns he raised or the protected disclosure he made. It says that performance management had been ongoing for some time, well before Mr McCormack raised concerns or a protected disclosure was made"
Gane said he could see difficulties in McCormack returning to his role.
"The accusations Mr McCormack has made about his managers and others, raises a level of distrust in his former employer. Reinstatement pending the outcome of the investigation places the parties in the position they would have been in but for the dismissal - balancing the competing tensions of complaints and an investigation in an ongoing work environment.
"Whilst I am satisfied that there are serious questions to be tried in respect of Mr McCormack's claims for unjustifiable dismissal and permanent reinstatement, the balance of convenience weighs in favour of RBNZ and the overall interest of justice also favours RBNZ. As a result, I decline Mr McCormack's application for interim reinstatement."
A substantive investigation meeting will be held in August.
