'Rogue employer': Invercargill council blasted over pay cuts

The ICC staff newsletter which advised employees of pay reductions if they could not currently...
The ICC staff newsletter which advised employees of pay reductions if they could not currently work full time in their role. Photo: Karen Pasco
The Public Service Association (PSA) union has hit out at the Invercargill City Council, calling it a "rogue employer" after some ICC staff were told their pay would be cut in half.

PSA national secretary Glenn Barclay said he was disgusted to see an employer who could afford to look after its staff choosing instead to ''kick them while they're down''.

ICC chief executive Clare Hadley announced the pay cuts to staff in a newsletter on April 22: those working full time would receive full pay, those working part time 75%, and those who were unable to work 50%.

Employees and managers who were advised of the pay changes via the newsletter were told they could make up their wage shortfall by using annual leave.

"I have spoken before about reflecting the community we serve," Ms Hadley says in the newsletter.

"Prudence requires that we apply our resources in the manner that benefits all of the community.

"We anticipate that this time next year our cash flows will be tighter as our community struggles to pay its rates bills. This is not someone else’s money - it’s yours, because you are the community too."

Ms Hadley told the Otago Daily Times earlier this week that all staff wages would return to normal once staff could return to work.

Mr Barclay said the information came after Ms Hadley had commented in the newsletter about ICC's ''strong financial performance'' saying the council anticipated an increased surplus.

"Those of us staying home are doing exactly what’s required to win the fight against Covid-19, but now a rogue employer wants to punish people for doing their part. Anyone who treats workers like this should be ashamed of themselves," he said.

The worst-affected people were predominantly employed in Invercargill’s pools and libraries, and were among the lowest paid council staff, he said.

"Someone paid barely a dollar above minimum wage simply cannot afford to have half their pay cheque taken away.

''This decision will cause hardship to rate-paying Invercargill families, and is a betrayal of the values the council should uphold," Mr Barclay said.

"An employer can not unilaterally cut the wages of our members. Contractual changes must be negotiated in good faith and implemented by agreement."

 - karen.pasco@odt.co.nz
 

Comments

I assume ICC has told her to quit or lookout, and NO bonuses.

How about the higher paid ICC staff showing their civic responsibility and taking a pay cut. Surely the highest paid will own their own homes or be in the fortunate position of having a mortgage, rather than renting. So they can utilise mortgage holidays, cut back on international travel etc. Those with dependants on wages less than approx $70000 have very little wiggle room between living ok and sleeping at nights .... and serious debt issues, needing loan sharks, and suffering sleepless nights over choosing which necessary bills to not pay. Higher salaries have wiggle room. ICC top echelon should care for their less fortunate staff, have a heart. Lead by example. That is authentic leadership.

The Warehouse is only decreasing wages of those earning more than $60k. National govt leaders are taking pay cuts. Otago University's leader has given herself a 20% pay cut.

Our CEO has no right to declare that her move to cut staff wages "reflects the community we serve". Our community is better than that. A poll of our community would show that very few agree with her and I believe what she is doing is unlawful. Maybe a symbolic falling on her sword would be appropriate.

 

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