New Zealand’s Open Country Dairy fires top manager over confidential data breach, sparking legal battle and highlighting industry security risks.
A high-ranking executive at Open Country Dairy, New Zealand’s second-largest milk processor, was summarily dismissed in late 2023 following the discovery that he had been leaking confidential pricing information. Simon Stewart, the company’s Group Market Manager, was found to have shared sensitive details with buyers, which would significantly enhance their negotiating position against his employer. This incident underscores the severe risks associated with breaches of confidentiality within the competitive international dairy sector.
The serious misconduct came to light in October 2023, after concerns were raised by another employee. Andrew McCutcheon, Open Country Dairy’s Chief Customer Officer, subsequently accessed Stewart’s emails, uncovering multiple communications that strongly suggested he was divulging proprietary pricing and competitor information to two external companies. The shared data included crucial minimum pricing details, providing an unfair advantage to the recipients.
Upon the discovery, Stewart was promptly suspended on October 10, 2023, for potential breaches of his employment obligations. His company devices, including computer, mobile phone, and email, were confiscated for a thorough forensic examination. Following the expert analysis, which substantiated the allegations and indicated potential financial benefits received by Stewart from an overseas company, Open Country summarily dismissed him on November 14, 2023.
Despite the egregious nature of the misconduct, the Employment Relations Authority (ERA), led by Chief Andrew Dallas, found that Open Country Dairy had not strictly adhered to its own procedural obligations. The company failed to hold two crucial meetings with Stewart, partly due to his stated illness, leading the ERA to rule his dismissal “unjustifiable” on procedural grounds. However, Dallas emphatically stated that Stewart’s actions were “overwhelming” and “egregious,” clearly warranting his summary dismissal.
The ERA’s determination paves the way for Open Country Dairy to pursue compensation and damages against Stewart, with the “door open” for such an application. Dallas concluded that Stewart had “breached his good faith obligations by conducting business either in competition with OCDL or, at the very least, at the expense of it,” and that any financial benefits received were in exchange for confidential information. Open Country Dairy, a significant exporter to over 70 countries since its inception after deregulation in 2001, faces implications for its operational security and market integrity.
Source: Stuff: Dairy company executive sacked for leaking confidential information
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