Fired Energy Australia director 'out for revenge', court told
Former director of corporate and government affairs, Kate Shea, is suing the company - previously called TRUenergy - in the Federal Court for unlawfully terminating her employment after she reported allegations that she had been sexually harassed by then chief financial officer Kevin Holmes and complained of the sexual harassment culture at work.
Justin Bourke, SC, for Energy Australia, said on Wednesday that Ms Shea was using the lawsuit to damage and destroy managing director Richard McIndoe's reputation after he fired her in 2012.
"[You are] determined to seek revenge on Mr McIndoe and see him be forced out of the business," he said. Mr Bourke drew parallels to the sexual harassment claims made against David Jones' former chief executive Mark McInnes, claims which led to his resignation in 2010.
Ms Shea acknowledged the lawsuit would affect Mr McIndoe, but said: "I'm not going to protect someone who's done the wrong thing. My focus was on getting the company to do something about things that were not right."
A text message she sent in 2012 referring to Mr McIndoe as a "dead man walking" reflected the views of others in the company.
Ms Shea claimed Mr McIndoe had often made comments about women's appearance in the workplace. She conceded that apart from casual asides, she had never raised it with him formally in the 4 years they had worked together, even though part of her job was to manage his reputation.
"(It was) his responsibility. I'm not sure it's my job to tell my boss how to behave," she said.
Energy Australia claims Ms Shea was fired not because she complained of a culture of sexual harassment, but as part of the company's restructure.
Mr Bourke said claims Ms Shea went to Sydney with a friend on the company's expense without taking leave were also a factor in her termination.
Ms Shea said she had paid for her flights to Sydney, where she visited her husband's doctor, and worked the rest of the day. Her husband has a long-term medical condition.
Energy Australia also argues that Ms Shea was not protected by the Fair Work Act because she did not make a complaint of sexual harassment against the company's former chief financial officer in good faith.
Ms Shea reported that Mr Holmes sexually harassed her - touching her back, neck and thigh - at a work function in Hong Kong in 2010.
Mr Bourke said Mr Holmes had put his arm around her to comfort her, when she became upset talking about her husband's medical condition. Ms Shea rejected this.
Frequently Asked Questions about this Article…
The Federal Court case involves former corporate and government affairs director Kate Shea, who says Energy Australia (formerly TRUenergy) unlawfully terminated her after she reported sexual harassment and a workplace culture problem. Investors should be aware because the dispute raises questions about management conduct, corporate governance and reputational risk for the company.
The article names Kate Shea (former director who launched the lawsuit), Richard McIndoe (Energy Australia's managing director who fired her in 2012) and Kevin Holmes (former chief financial officer accused of sexual harassment). Counsel for Energy Australia, Justin Bourke SC, is also quoted in court submissions.
Energy Australia contends Shea was let go as part of a company restructure, and says other issues — such as claims she travelled to Sydney with a friend at the company’s expense without taking leave — were factors in her termination.
Shea reported that in 2010 at a work function in Hong Kong, Kevin Holmes touched her back, neck and thigh. She also complained about a broader sexual harassment culture and said former managing director Richard McIndoe often made comments about women's appearance at work.
Energy Australia argues Shea was not fired for complaining about harassment and further says she is using the lawsuit to damage Richard McIndoe's reputation. The company also argues Shea is not protected under the Fair Work Act because it says her complaint was not made in good faith.
Yes. Energy Australia’s counsel accused Shea of seeking 'revenge' and trying to force McIndoe out. The article notes a parallel drawn in court to a previous high-profile case (David Jones) that led to an executive's resignation, indicating potential reputational and leadership scrutiny.
Energy Australia argues that Shea is not protected by the Fair Work Act because, in the company's view, she did not make her sexual harassment complaint against the former CFO in good faith. That point is part of the company’s defence in the Federal Court proceedings.
Investors may want to watch court outcomes, any statements or actions from Energy Australia about corporate governance or management, and media coverage of reputational issues. The article highlights the dispute's potential to affect senior management reputation and company governance, which can be relevant to investor sentiment.
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