Retirement Commissioner Diane Maxwell cleared of bullying

Wednesday, 22 May 2019

Retirement Commissioner Diane Maxwell has been cleared of bullying, but an investigation into her tenure did find her communications style was abrasive and challenging.

And in two instances, she had breached staff members' privacy by disclosing confidential information about them to others in the Commission for Financial Capability, a report released on Wednesday by the State Services Commission found.

Maxwell said: 'I am pleased that the report found that bullying conduct had not occurred and I am looking forward to returning to work.'

'While the report made a finding of no bullying, it did indicate that some previous staff had difficulty with my communication style. I have reflected on the points made and will ensure that my communication style is professional, courteous and respectful to all staff.'

Minister of Commerce and Consumer Affairs Kris Faafoi said the investigation into the conduct and behaviour of the Maxwell did not establish bullying conduct and Maxwell would return to work tomorrow to finish her contract as Commissioner.

Faafoi ordered the State Services Commission to conduct an investigation after bullying claims emerged in the media.

'The investigation found that the benchmark to establish bullying conduct was not met, however conclusions in the report do raise concerns about the effect on complainants,' said Faafoi.

'My view is that conduct in every workplace should be courteous and professional and staff should be treated with respect. Ms Maxwell has given me her assurance that her return to work will see her focus on creating this environment and continuing to focus on the important work the Commission has to do to ensure Kiwis are best positioned for their retirement.'

'HR policies have been updated at the Commission and specifically, there is a new whistle-blower policy in place. Before returning to the office Ms Maxwell has agreed to a mitigation plan which includes enhanced monitoring and increased presence of senior Ministry of Business, Innovation and Employment staff in the office, and chief executive Carolyn Tremain will be available to any staff where the Retirement Commissioner maybe the subject of a complaint.'

Report author Maria Dew QC, found many staff and ex-staff unhappy with Maxwell's behaviour.

'The 16 interviewees who raised concerns about bullying and inappropriate conduct by Ms Maxwell provided a large number of alleged incidents over a period from 2014 to 2018, inclusive,' she said.

'The central allegations of bullying including demeaning and belittling criticism of employees and their work. There were also alleged incidents of aggressive and isolating behaviour towards staff.'

But, Dew said: 'This investigation has found that Ms Maxwell has not bullied current or former staff of the Retirement Commissioner.'

'Standing back and considering Ms Maxwell's conduct over the period of her tenure, it does not establish a pattern of unreasonable and repeated behaviour, sufficient to amount to bullying in accordance with the definitions used in this investigation,' Dew concluded.

Dew said Maxwell claimed ex-staff who complained were unhappy with her decisions either because of performance concerns she raised with them, or their positions being made redundant, or fixed term contracts not being renewed.

But, Dew said: 'I have considered this proposition. However, I am not persuaded that this explains why 16 employees, whose employment spans different periods between 2014 through to 2018, have reported similar concerns to this investigation. I note that of the 16 complainant employees, 11 resigned without being the subject of any formal performance management or disciplinary issue at the time of their resignations. Nine of those resignations all occurred in the two years 2017 and 2018, and all reported concerns with Ms Maxwell's conduct.'

Maxwell was appointed in 2013, and led a cultural shift at the commission, and a re-focusing from Wellington to Auckland.

The Wellington office had gone from approximately 20 employees to one fulltime employee. The Auckland office also increased from 2-3 employees to a staff of some 36 permanent, fixed term and contractor staff.

'During this investigation, I was provided with more than 20 different CFFC organisation structure charts for the period July 2013 to November 2018,' Dew said.

The rapid change had caused anxiety among staff, Dew found, but it was resignations, not redundancies which was the principal cause of staff turnover.

She also found staff willing to speak of Maxwell's positive qualities.

'Many of the 24 interviewees acknowledged that Ms Maxwell has some strong leadership qualities and that they respected her progressive thinking, creativity and passion for the role,' Dew said.

Maxwell's tenure as commissioner ends on June 30. The search for her successor, who will be tasked with advising the government on retirement income policy as well as lifting public financial capability, is being conducted by the Ministry for Business, Innovation and Employment.