Pacific Brands says it will “vigorously defend” a $9 million unlawful dismissal claim by a former senior executive, who claims she was bullied and discriminated against by the clothing goods company.
Sally Berkeley, a one-time bra division chief and head of underwear, was dismissed at the end of last year. She has alleged she was subjected to “bullying and unacceptable” behaviour by her male manager in 2006 and 2007.
Berkeley, who reportedly says she been informed by recruiters and headhunters that it will be difficult for her to find a suitable position at the same level, is seeking $8.3 million for anticipated economic loss and $500,000 for dislocation of life, pain and suffering, stress, humiliation and loss of professional reputation.
The former employee, who is believed to have had a salary of about $200,000, says she was shown the door for requesting a pay rise and standing up to the “bullying conduct” of her manager.
But Pacific Brands, the company behind Bonds and Berlei underwear, says it had “fully investigated” Berkeley’s bullying claims prior to her dismissal, but they were deemed to be lacking in substance.
It also says that Berkeley did not “conduct herself consistently with the new requirements of the new structure which the company had put in place” and her conduct “brought her into conflict with work colleagues, and impacted negatively on the workplace.”
“Pacific Brands will vigorously defend the claim Ms Berkeley has made,” the company said, adding it was disappointed at her “baseless allegations.”
Allens Arthur Robinson partner Tim Frost says the case is similar to last year’s $37 million sexual harassment claim by David Jones publicist Kristy Fraser-Kirk against the department store’s then-chief Mark McInnes, in that it takes an “aggressive approach” on a related subject matter of bullying.
Fraser-Kirk eventually settled for $850,000.
The coincidences don’t stop there – Berkely is represented by employment and industrial law specialists Harmers Workplace Lawyers, which also worked on the Fraser-Kirk case, while McInnes’ PR company, Cato Counsel, is also representing Pacific Brands.
Clayton Utz special counsel Michael Byrnes says cases involving bullying and sexual harassments are getting more attention than ever before, and that means that companies need to consider their reputation and brand when they come to light.
Byrnes, from the workplace relations, employment and safety group at Clayton Utz, says it’s difficult to determine how the $8.3 million figure was reached.
“Often headline figures are many multiples than the court will actually award,” Byrnes says.
“As a general proposition, often there isn’t rigour in the way assessments are made at preliminary level,” Byrnes says, adding it’s often forgotten that payouts in discrimination can often be quite small.
Byrnes says payments in these circumstances very much depend on how much income was lost because of the unlawful behaviour, such as bullying.
Allens Arthur Robinson partner Tim Frost adds that while the headline figure is a large one, if an employee can show there’s been a “foreseeable psychiatric injury” as a result of certain conduct, there is an ability to pick up substantial damages.
“The courts are prepared to recognise that an injury that causes economic loss should be compensated, less certain discounts.”
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
