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Guthrie, ABC board members ordered into mediation in unfair dismissal case

By Jennifer Duke

The Australian Broadcasting Corporation and several of its directors have been ordered into mediation "as soon as reasonably practicable" with sacked managing director Michelle Guthrie, who is suing the public broadcaster for unfair dismissal.

Neither Ms Guthrie nor the ABC's directors attended the first case management hearing in the Federal Court in Sydney on Tuesday morning. The case could drag on for several months, with another hearing scheduled for April 9.

Former ABC chairman Justin Milne and former ABC managing director Michelle Guthrie.

Former ABC chairman Justin Milne and former ABC managing director Michelle Guthrie.Credit: AAP, ABC/Four Corners

Ms Guthrie filed an adverse action lawsuit on December 20 against the ABC and specifically named ex-chairman Justin Milne and directors Donny Walford, Joseph Gersh and Vanessa Guthrie as defendants. Board members Kirstin Ferguson (current acting chair), former Seven executive Peter Lewis, Georgie Somerset and staff-elected director Jane Connors were not named in the action.

Ms Guthrie has asked for remedies such as compensation and the ability to be returned to her almost $900,000-a-year role as managing director.

The former managing director was sacked half-way through her five-year term in September and Mr Milne resigned days later, after details from a dossier circulated to the board before she was sacked became public. This included allegations that he had encouraged her to sack journalists the government didn't like.

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Justice Jayne Jagot on Tuesday ordered that the ABC provide a statement of position responding to Ms Guthrie's application later this month, with mediation "to occur as soon as reasonably practicable".

A spokesman for Ms Guthrie welcomed the order, saying her objective had "always been to achieve a quick and fair resolution".

“Ms Guthrie was sacked because she made a complaint to board members about the chairman’s conduct," the spokesman said.

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"Her main complaint was that he had repeatedly ordered her to get rid of journalists for political purposes. Within days of her sacking, the board forced the chairman to resign, precisely for the behaviour she had complained about," he said.

“Although, the ABC has paid Ms Guthrie an amount required under her employment contract for the termination of her employment before 4 July 2021, the contract does not permit her employment to be terminated for an unlawful reason. It is clear Ms Guthrie’s employment was terminated for unlawful reasons.”

The ABC declined to comment, but previously said it was "not correct" she had been fired because she made complaints, but because the board had lost confidence in her and that the sacking was lawful.

The ABC is standing by its decision to terminate her employment and is defending the claims.

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Original URL: https://www.smh.com.au/business/companies/guthrie-abc-board-members-ordered-into-mediation-in-unfair-dismissal-case-20190205-p50voi.html