Receiver Grant Thornton NZ is overseeing the interim management of the agricultural institution near Balclutha as part of the liquidation of Taratahi Agricultural Training Centre, which operates it and other on-farm campuses.
In a letter leaked to the Otago Daily Times yesterday afternoon, interim liquidator David Ruscoe informed staff of the pay freeze, effective Friday, saying it was ''obliged to continue responsibly to protect the value of the Trust Board's assets.''
Although some staff would be required to stay on for ''animal welfare'' purposes, the academic and administration side of the business would be ''unable ... to operate under the current circumstances''.
The announcement left staff in a ''terrible'' situation, in which Government should intervene immediately, Tertiary Education Union Otago organiser Kris Smith said.
''We'll be working closely with our affected members over the next few days, because this leaves them in an impossible situation, working unpaid, but with no firm guarantee of jobs moving forward.
''The situation requires immediate action from the Tertiary Education Commission before we lose what everyone agrees is a crucial part of our primary sector training infrastructure.''
Telford Farm board chairman Richard Farquhar said he had not seen the letter, and was therefore unable to provide ''informed'' comment on the latest developments.
''We're still waiting to hear from the liquidators regarding their plans, so I don't really want to say more until that's happened.''
Clutha Mayor Bryan Cadogan, who has been party to negotiations, said he was ''surprised and frustrated'' by the liquidators' decision.
''One of the greatest assets of Telford is its staff, so this is a surprising move by receivers at a time work is ongoing to secure Telford's future. It's pretty frustrating, and my thoughts are with the staff.''
Negotiations to identify a new tertiary operator for Telford were continuing, he said.
''Speed is of the essence here. We can't let Christmas kill Telford.''
The apparent frontrunner among those involved in negotiations is the Southern Institute of Technology (SIT).
Chief executive Penny Simmonds said SIT was ''poised to assist'', but was ''unable to do anything'' until liquidators provided further information.
She declined to comment on the pay freeze.
In the meantime, Ms Smith said staff and students had been left ''directionless'' as a result of a ''broken funding model'' for agricultural education.
''Let's hope the right steps are taken to transfer Telford to a new provider quickly and effectively, and with no transfer of debt, to allow it to move forward without further issues.''
Grant Thornton representatives would be available to meet staff at Taratahi's Telford and Wairarapa campuses from noon to 2pm today.
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Comments
Unpaid staff have no obligation to 'stay on'. They are skilled and needed, when Telford is sorted.
Don't pull that one, Trust Board.
This isn't complicated. If employees can't be paid then they are no longer employed. If redundancy need be paid then the liquidators need to find that.
You can bet neither the board members or liquidators are working for free.