Svitzer operated a marine towage business across Australian ports. Newcastle was an important site because it was the company's largest port by several measures and also housed the East Coast Operations Centre, which handled centralised scheduling and booking for east coast ports. Mr Gavin had worked for Svitzer since about August 2017 and had been promoted several times. From 1 June 2022 he held the expanded role of Newcastle Port and Operations Manager.
That 2022 role had itself come from an earlier restructure. Svitzer had identified problems in the East Coast Operations Centre, including high turnover and low engagement, and decided to combine responsibilities in a new senior role for Mr Gavin. Internal material described him as someone with strong operational knowledge who had already improved team performance and engagement.
At the same time, Svitzer was dealing with a difficult enterprise bargaining process to replace its 2016 enterprise agreement. The bargaining history was lengthy. The company had sought termination of the 2016 agreement, there had been industrial tension including a proposed lockout, and by May 2023 the parties were moving toward an in-principle agreement for a replacement enterprise agreement. The extract makes clear that this bargaining context formed part of Svitzer's explanation for the later redundancy decision.
Between late 2022 and April 2023, Svitzer considered a series of Newcastle restructure proposals. The people involved included Mr Gavin, senior management, human resources personnel and Ms Lauren Munro. Early proposals appear to have kept Mr Gavin in the senior Newcastle role while adding more management support underneath him. Those proposals focused on improving availability for strategic goals and reducing the burden of day-to-day operational work.
As the proposals evolved, the structure changed. One version would have given Ms Munro a newly created Operations Manager role while Mr Gavin retained the Port and Operations Manager position. Another version moved further, with Ms Munro stepping into a recreated Newcastle Port Manager role and Mr Gavin shifting into a new Operations and Strategic Projects Manager role. Internal communications discussed reduced accountabilities for Mr Gavin and proposed remuneration around $200,000, lower than his existing package.
The extract records a meeting on 17 April 2023 where the proposed structure was discussed with Mr Gavin and Ms Munro. Mr Gavin said he felt ambushed and blindsided. Svitzer's witnesses gave a different flavour to the discussion, including evidence that he reacted by saying that management of the crew would become Ms Munro's problem. What matters commercially is that by this point the structure under consideration no longer preserved Mr Gavin's existing role in the same form.
After that meeting, a further proposal described the existing Newcastle Port and Operations Manager role as too heavy a workload, while also saying the role had been a success. It proposed returning Newcastle to a more standard towage structure with a Port Manager focused on towage and lines and mooring, while the East Coast Operations Centre would report to a newly created Operations and Strategic Projects Manager role for Mr Gavin. The same proposal said the new role should be benchmarked at $200,000 and would involve a decrease in base salary because of reduced accountabilities.
On 2 May 2023, the new structure was approved. It involved removing Mr Gavin's Port and Operations Manager role, recreating the Port Manager role, creating the Operations and Strategic Projects Manager role, and adding an additional operational superintendent. Ms Munro was to be appointed Port Manager and Mr Gavin was to be offered the new strategic projects role.
On 4 May 2023, Mr Sheehan spoke with Mr Gavin about the new role. The extract says Mr Gavin expressed concern about the instability of a special projects role compared with the relative security of the Port Manager role. Mr Sheehan then sent him a letter of offer and position description. The published text cuts off during that email, but the later orders show that the matter did not end as a routine restructure. Mr Gavin challenged what happened as unlawful adverse action.