A judge has refused to grant an injunction to restrain an employer from offering their workers new terms and conditions, a move the Meat Workers Union have said would constitute an "unlawful lockout".

The hearing, held in Employment Court in Rotorua, concerned new individual agreements Sir Peter Talley's AFFCO wanted staff to sign before returning to work.

The AFFCO site in Rangiuru. Photo: File

In court this week, Chief Judge Graeme Colgan ordered "immediate mediation" for both parties on the alleged lockout and a dispute over a collective agreement issues at the company's Rangiuru plant, between Te Puke and Paengaroa.

Judge Colgan says his judgment "follows the balance of convenience".

"The balance of convenience is a fine one but, ultimately, favours the defendant's position that no injunction should be granted," he says in his decision.

"Although potential financial loss is not the only consideration in this balancing exercise, it is important not only for AFFCO but for the second plaintiffs if they are not able to start earning again soon.

"I consider, also, that not granting the injunction sought will better promote the cause of revitalised collective bargaining and the chances of obtaining a collective agreement, with the assistance of mediation, than would be the case if the injunction was granted."

Before the court, union lawyer Simon Mitchell says the individual agreements staff were being asked to sign included "pernicious terms that have no place in the employment environment".

The union has claimed AFFCO was using the unlawful lockout to compel staff to sign the new individual agreements, something the company has denied.

"AFFCO has not made any demands to accept conditions of employment," says AFFCO lawyer Rachel Webster.

She also denies a lockout is in place, saying that the nature of on and off season employment made them new workers.

AFFCO is under no obligation to resume the next work season under the terms of the last, lapsed, collective agreement, says Rachel.

Judge Colgan warns AFFCO that many of its terms and conditions in the new individual employment agreement "appear to be of dubious validity".

"AFFCO should not take the rejection by the Court of the plaintiffs' application, as being an endorsement of the validity or even of the wisdom of a number of those terms and conditions," says the judge.

"Many of the plaintiffs regard these individual employment agreements as AFFCO's means of having a tightly controlled and compliant workforce and it is difficult to dismiss that assertion.

"The Court urges AFFCO to re-examine, negotiate about, and improve its immediate relationships with a significant sector of its staff."