An employment court declaration that Affco acted illegally in locking out seasonal meatworkers on the union contract has been upheld by the Court of Appeal.

The meat workers were locked out at Rangiuru near Te Puke and Affco meat processing plants at Imlay, Manawatu, Wairoa, Moerewa and Horotiu.

Affco's appeal has failed. File Photo.

The company and the workers had been parties to a collective employment agreement which expired on December 31, 2013 but which continued in force for a further year between the company and each worker.

Before the 2015/2016 season began, Affco said it wouldn't re-hire the workers unless they accepted terms and conditions set out in new individual agreements.

The New Zealand Meat Workers and Related Trades Union Inc claimed Affco's actions were taken for a coercive purpose to undermine ongoing negotiations toward a new collective agreement.

The Court of Appeal found the Employment court was wrong to declare the meatworkers were in continuous employment during the off season. The Employment court failed to apply correct principles of contractual interpretation and failed to correctly apply earlier decisions of the Court of Appeal and the Employment Court.

The Court of Appeal says the collective agreement creates ongoing and enforceable rights and duties, including redundancy rights and an obligation on Affco to re-employ seasonal workers according to seniority – which the new terms offered by Affco sought to abolish.

Instead Affco wanted to be able to decide final suitability for termination and re-employment without any obligation to consult. The purpose of Affco's actions was to undermine the collective bargaining regime provided by the Employment Relations Act 2000, which is designed to redress the inherent inequality of power faced by workers in this situation.