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Former Energy Australia executive was 'out for revenge'

Energy Australia says a woman suing the company for unlawfully ending her employment is using the lawsuit to "destroy" its managing director's reputation.
By · 29 Aug 2013
By ·
29 Aug 2013
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Energy Australia says a woman suing the company for unlawfully ending her employment is using the lawsuit to "destroy" its managing director's reputation.

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.
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Frequently Asked Questions about this Article…

The Federal Court case involves former corporate and government affairs director Kate Shea suing Energy Australia (formerly TRUenergy) for unlawfully terminating her employment after she reported alleged sexual harassment and complained about a workplace sexual-harassment culture. Investors should care because the dispute raises reputational and leadership risks for the company and is being publicly contested in court.

The article names plaintiff Kate Shea, Energy Australia’s managing director Richard McIndoe, former chief financial officer Kevin Holmes (accused of the alleged harassment), and Justin Bourke SC who represented Energy Australia in court.

Energy Australia says Ms Shea’s lawsuit is aimed at damaging and 'destroying' the managing director’s reputation and that she was dismissed as part of a company restructure. The company also argued she had taken a Sydney trip with a friend on company expense without taking leave and contended her complaint was not made 'in good faith' so she was not protected by the Fair Work Act.

Ms Shea alleges she was sexually harassed by then-CFO Kevin Holmes—saying he touched her back, neck and thigh at a work function in Hong Kong in 2010—and that she complained about a sexual-harassment culture at the company. She says her aim was to get the company to address things she believed were 'not right.'

The article reports Ms Shea conceded that, apart from casual asides, she never formally raised concerns about Richard McIndoe’s comments on women’s appearance during the four years they worked together, even though part of her role involved managing his reputation.

Energy Australia told the court the lawsuit seeks to force the managing director out and damage his reputation; Ms Shea acknowledged the case would affect him but said she wouldn’t protect someone who'd 'done the wrong thing.' The company’s lawyer drew parallels to sexual-harassment claims at David Jones that led to a CEO resignation, meaning investors may want to watch for leadership and reputational fallout.

Energy Australia argued Ms Shea was 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 is part of the company’s defence against her unlawful termination claim.

Investors should follow court updates and official company statements, monitor any changes in senior leadership or board response, and watch for potential reputational or operational impacts referenced in the article—since public legal disputes over workplace culture can affect stakeholder confidence even before any legal outcome is reached.