A Gisborne vehicle testing station recently sold by the district council's commercial arm has come under fire from a former staff member who claims the environment was toxic and unworkable.
The business has come under fire from former employees who claim working conditions were difficult. Photo: Liam Clayton / Gisborne Herald
Allegations of bullying, mismanagement of staff and long shifts without breaks are at the centre of the claims against Gisborne Vehicle Testing - a business which was recently bought by Vehicle Testing NZ (VTNZ) after almost 70 years in council control.
Gisborne Holdings Ltd (GHL) parted ways with the station in December, citing reasons for sale that included declining revenue streams.
But issues brought forward by former employees show problems were brewing in the background long before the sale went through.
One staff member, who Local Democracy Reporting agreed not to name, said they endured bullying from their boss that reached a point where they kept a book detailing the mistreatment.
Along with their colleague, they would put in 10-hour shifts which were often without breaks because of staffing issues.
"Our boss was actually taking WoF [Warrant of Fitness] inspectors off the floor to run around picking up cars. It was like they did everything they possibly could for that place not to work."
The person also believed double standards were at play, detailing an experience where they were reprimanded for a conversation they had with a customer while their boss got away with making inappropriate comments.
They claimed staff were told to stop sending out Warrant of Fitness reminders and discouraged from telling people to bring their cars in.
Another former employee said at times they were on call until 11pm, while more recently being forced to shoulder the extra responsibility of maintaining the Wash'n Go facility - a GHL-owned car wash adjacent to the testing station.
Workload expectations were unreasonable, and when it was announced the business would be changing owners, three staff members left at once, they said.
"We've always had issues with staff."
Gisborne Vehicle Testing was owned by Gisborne Holdings Ltd until a recent sale to VTNZ. Photo: Liam Clayton / Gisborne Herald
A third person said the business had a toxic feeling, and that staff were often on edge.
Approached for comment over the allegations, a GHL spokesperson said the board decided the sale of the business had already been reported and they had nothing to add.
The testing station opened in the mid-1950s under Gisborne Borough Council control. It wasn't until 2016 that it was transferred to GHL's portfolio along with other council-owned commercial assets.
In January, GHL chairman David Mullooly said a number of factors forced the sale to VTNZ including an inability to attract and train new inspectors because of border closures, and a move to modern vehicles that required less servicing.
As recently as September, demand for the service was so high some customers were having to wait three hours to get a WoF.
Information obtained by Local Democracy Reporting shows GHL had concerns about the long-term viability of the business as early as 2017, but did not confirm to the council that the station was in trouble until a public-excluded meeting in September 2021. They did, however, flag issues in their 2019 reports.
The information shows GHL did not seek guidance or input from the council on the fate of the operation because it was a business decision and within its mandate to make the call.
In a letter written to the mayor and councillors dated 3 November 2021, Mullooly said two inspectors had resigned and left town which was putting undue pressure on the business.
"GHL appreciate that either way this is not the most desirable outcome for a long-standing local business, but we must be realistic in the current commercial environment," Mullooly wrote.
In a similar letter written three days later, he said Gisborne Vehicle Testing would soon be down to one inspector.
Despite red flags being raised as early as 2017, an extract from GHL's 2020 annual report said they were confident in the business model and strategy that was in place.
The station had posted a loss of $27,000 for that year, the report said.
The 2021 annual report stated the site was in a rebuilding phase, but management and staff were committed to improving turnover and returns.
GHL states on its website that it has total net assets of $123 million.
The station made up 1 percent of GHL's fixed assets at the time of sale to VTNZ, which will open up the newly-combined operations at the Gisborne Vehicle Testing site later this month.
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air