Air China Wrongfully Dismissed Staffer Who Would Not Join Smuggling Ring

The airline was ordered to pay nearly $50,000 in compensation.

An Air China's Boeing 737-800 taxis on the runway, at the Beijing International airport, 11 May 2005. China Southern Airlines and its unit Xiamen Airlines said they have signed agreements to buy 45 Boeing aircraft in a deal worth up to three billion dollars. STR/AFP via Getty Images

New Zealand’s Employment Relations Authority (ERA) has ordered the local subsidiary of Air China to pay almost $50,000 to an Auckland-based staff member who claimed she was fired for refusing to participate in a cigarette smuggling ring.

Miao Wang, a former customer service representative, was dismissed in July 2020 for alleged “repeated misconduct and refusal to follow reasonable instructions.”

However, she claimed she was subject to bullying, harassment, and even assault by senior management after declining questionable requests.

According to Wang, tensions began in late 2017 when cargo manager Lina Huang asked her to accept offshore funds into her bank account and find her a New Zealand husband for residency. When Wang refused, their relationship deteriorated.

She further claimed that in November 2017, Huang physically assaulted and detained her, smacking her face and kicking her. A colleague who tried to intervene was also assaulted, she said.

Wang reported the incident to airport police and Air China’s then-New Zealand General Manager, Gang (Tony) Guo, but no action was taken.

However, Guo and station manager Richard Yu called Wang into a meeting lasting more than four hours and ended after midnight. Wang was caught by Guo trying to surreptitiously record a subsequent disciplinary meeting, which prompted a warning letter.

“In view of the fact that your use of the voice recorder in the office meeting has seriously violated the company’s internal confidentiality agreement, the company hereby seriously criticizes you,” the letter read.

Pressure to Smuggle Cigarettes

In 2018, Air China’s New Zealand branch became the target of a Customs investigation, Operation Waxeye, into an alleged cigarette smuggling ring.

Wang claimed she was pressured to help by carrying a bag of cigarette cartons off a plane, bypassing customs checks due to her clearance as a customer service agent.

She provided video evidence of the incident, including an audio recording of a colleague urging her to take the bag.

When she refused and reported it to Guo, she alleged he warned her of “negative consequences” for herself and her family.

Guo and Yu denied the accusations. However, despite never being investigated, Wang was publicly accused of involvement in a post within Air China’s official staff WeChat group.

She later sued the airline for defamation in Beijing and won, receiving about $4,500 in compensation.

Air China Fired Employee After Flawed Investigation, Tribunal Finds

Following these events, Air China launched an internal investigation into Wang’s conduct, ultimately suspending her for 13 months before firing her. The ERA found multiple serious failings in the way the airline had conducted the disciplinary process, including:

• Holding four-hour-long late-night meetings without clear justification.
• Failing to address Wang’s grievances about workplace harassment.
• Publicly defaming Wang on WeChat without evidence.

The authority said the airline also “failed to meet its obligations to consider what she had to say with an open mind.”

It ruled that the airline had breached its duty to maintain a fair employment relationship and dismissed her unfairly.

Compensation and ERA Ruling

Wang was awarded six weeks’ wages amounting to $7,323.75 (plus holiday pay), $20,000 for emotional distress, and another $20,000 for unjustified dismissal.

Air China applied for permanent suppression of the determination (pdf), but the authority refused, saying that concealing it would not be in the best interests of the public.

Wang was born in China and emigrated to New Zealand in 2011. She told the authority that working for Air China was an honour and a source of pride to her and her family and friends. Initially, she was praised by her superiors and enjoyed her work.

Meanwhile, the smuggling ring was subsequently arrested and pleaded guilty to defrauding Customs of revenue. However, they were discharged without conviction and later returned to China.