Well, we all know why we're here,' says Joanna Hill, CEO of Ace International. 'It's Mark Lucas.' The other three managers seated at the table  Tina Wong, CFO, Katie Angelli, chief human resources officer and Sam Goldberg, legal counsel  all give sighs of resignation.

'I should have fired him on day one,' says Tina. 'The man is nothing but trouble. He is a total pain in the neck.'

'We all agree, Tina, but New York Head Office gave a guarantee that after our takeover of Oz Industries, there would be no headcount reductions for 6 months to allow our managers to accurately assess our people requirements. Like it or not, that was the deal,' Joanna replies.

'I know, I know,' answers Tina, the frustration clear in her voice.

'Anyway, the Mark Lucas matter has now come to a head,' says Joanna.

'What do you mean?' asks Tina.

'Just this,' says Sam, pushing two photocopies across the table.

'What's this?' asks Katie.

'A lawyer's letter, written on behalf of your good friend Mr Lucas, alleging bullying, harassment and discrimination, and requesting a formal written apology from the company and payment of a $1000000 settlement,' Sam offers with a slight smile. 'Sam, you have to be joking,' says Tina in disbelief.

'I'm afraid not. It appears that Mark Lucas has been secretly recording social conversations he has had with work colleagues and of all the meetings he has had with you to discuss his performance.'

'Is that legal?' asks Katie.

'In this state, it is not unlawful for someone to record a private conversation.'

'Unbelievable!' says Katie.

'It's telephone conversations that are not allowed to be recorded without the other person's permission. As employers today, we have to assume that all discussions with an employee are being recorded,' Sam explains.

'I think that it is absolutely terrible how do you build trust and good work relations when you don't know if a colleague might be spying on you?' Katie responds.

'Which brings us to Mark Lucas,' Sam continues. 'He claims the work environment since the Ace takeover has become culturally insensitive, obsessed with performance and punishing to those seeking work-life balance.'

'Work-life balance!' says Tina. 'That man would not know what work was if he fell over it. He is forever taking smoking breaks, has the worst attendance record in my department and refuses anything that he regards as being outside his job description. Everyone in the department hates him. They all think he is a first-rate jerk.'

'That's just the point,' says Sam. 'He says that you have persecuted him because he is an Anglo-Australian who has quality-of-life priorities.'

'What do you mean?' Tina asks.

'In a nutshell, he claims that the company's American results-oriented culture and your excessive demands have caused him to be bullied and discriminated against.'

'How?' demands Tina.

'He claims it's because of your Chinese background, which has made you too ambitious and achievement oriented. He says that you are work obsessed and have impossible expectations of your employees.'

'This is crazy, Sam,' says Katie.

'It gets better,' Sam responds, again with a cynical smile. 'He claims to have recordings of a performance discussion with you where he was accused of not achieving his performance targets and of being irresponsible, lazy, uncooperative and a poor team player.'

'All true and I have the evidence to back it up,' barks Tina. 'I have everything documented the mutually agreed performance goals, the mutually agreed action steps and he knows that. I even have the video surveillance tapes showing him consistently exiting the building for cigarette breaks his record is nine smoking breaks in one day. My people are fed up to the back teeth with him and his constant complaining and failure to pull his weight.'

Sam smiles again. 'Alas, Lucas has recordings of your subordinates George Xiradus calling him "a lazy slob who needs a kick up the backside" and of Nishima Hirani telling him he is a "disgusting, evil smelling creep".'

'All true,' says Tina.

'Lucas claims that he was isolated and humiliated by his colleagues because of pressure from you and that he was never invited to any of the group's after work social activities. Furthermore, he says that as a result of the excessive pressures to perform, the hostile work environment, and the bullying and discrimination he has experienced, he now suffers from feelings of insecurity, severe stress and a general sense of worthlessness. As a result of these significant mental health issues, his cigarette consumption has increased, he has experienced considerable weight gain, and he fears coming to work. He, therefore, has no choice but to seek compensation.'

'This is a "try on" Sam he is after "go away money",' interjects Katie. 'He knows he is not going to make the cut when headcounts are finalised.'

'I agree,' replies Sam. 'The problem is that there is the implied threat that if we don't meet his request, he will go to the media do you want to risk that?'

'This is rubbish,' snaps Tina. 'Surely, Joanna, we are not going to give into this crude attempt at blackmail. Morally, it is wrong.'

'I agree, but tell me, how will New York react when the headlines are "Chinese boss terrorises Aussie worker"? Or "Aussie battler suffers breakdown because of US company's profit demands"?' asks Sam.

Question 5: 

As the Chief Human Resource Officer Katie Angelli, outline what you consider are the main HR and legal problems in the case. In your answer, use evidence from the case to support the identified problems. 

 

Question 6:

As the Chief Human Resource Officer Katie Angelli, explain what actions you could take to solve the problems identified in question 5.