The Wiggles have driven a big red car to mediation with their former boss after rubbishing his claims he was illegally fired for complaining about the group hiring friends and family.
Luke O'Neill has launched legal action against the group, blue Wiggle Anthony Field and its general counsel Matthew Salgo in the Federal Court seeking damages and penalties.
He says he was dismissed without a reasonable basis by the famous children's entertainers in May after complaining about the hiring of Field's friends and family members.
But The Wiggles allege the former CEO was fired because his "overall performance was not satisfactory" and necessary trust in him had been lost.
"The situation was not regarded as sustainable or capable of remedy," their written defence says.
Mr O'Neill claims Field - the sole original Wiggle still performing in the group - questioned his competence and "undermined him" in front of more than a dozen staff at a meeting in February.
But the group alleges he was advised by Field that he was too involved in the creative development process, given his commercial role, and hadn't been consulting with Field - who acts as creative director - about creative decisions.
Mr O'Neill claims Field took steps to reduce his roles and responsibilities, including by excluding him from meetings with department store Kmart about Wiggles toys.
Yet The Wiggles claim the former CEO didn't express any interest in going to the meeting and told a colleague that "he did not need to attend".
The group similarly contested his claim that he had not been consulted about a decision to remove a tour promoter, citing an email chain in which he appears to agree with the move.
O'Neill says he was owed more than the $86,266 bonus he received in July and is seeking to recoup the full bonus amount, in addition to compensation and penalties.
But The Wiggles maintain they were not required to pay the former CEO "any bonus either whilst an employee … or on the termination of (his) employment".
In the defence filed in the Federal Court, the group categorically denies the allegations laid out by their former CEO and contend large swathes of his claim are liable to be struck out.
If the mediation is unsuccessful on Wednesday, the legal fight is expected to return to court in February to set a date for a contested hearing.
Mr O'Neill was appointed as the first chief executive of The Wiggles in January 2024.
He says he was tasked with implementing strategies to grow the group's revenue, maintaining its budget and overseeing hiring decisions.
The Wiggles formed in 1991 and are among Australia's top-earning and most widely beloved entertainment groups, winning multiple ARIA awards and being inducted into its hall of fame in 2011.
In 2022 they were recognised for outstanding services to Australian music at the APRA awards.
