Fletcher Building on shaky legal ground with pay cuts for workers, employment lawyer warns

April 3, 2020

Some Fletcher building workers told 1 NEWS they had just 24 hours to consider the large pay cuts. (Source: Other)

An employment lawyer says Fletcher Building is pushing it legally, after emailing staff about massive pay cuts.

Workers at Fletcher have told 1 NEWS they've been railroaded into taking pay cuts of up to 70 per cent and they were given just 24 hours to consider it.

Correspondence seen by 1 NEWS said staff had until midday today to accept the cuts and if they didn't respond, the company would assume they didn't object.

Nearly 9500 Fletcher staff are sidelined during the level 4 lockdown, with projects on pause and stores and distribution centres shut.

The company has told them wages must be slashed: first cuts of 20 per cent, then 50 per cent, before finally 70 per cent over 12 weeks.

"Ultimately it is my family and the workers employed by Fletcher's families' that are going to pay for this," one worker, who asked to stay anonymous, told 1 NEWS.

"Any savings that my family has managed to put aside are going to be used up. 

"We can't afford the repayments of everything like all our living costs. I have to pay rent, we can't lose our house."

Workers were first told of the proposed cuts on Wednesday and given 24 hours to agree.

Those that didn't were sent another prompt today, saying if they didn't reply by midday the company would "assume you've no objection to proceeding".

"We thought this was a team business, a family-orientated business and the workers I have talked to have felt bullied into signing this agreement," the worker says.

"It feels like they have kicked us outside and left us out in the cold."

Employment lawyer Helen White says Fletcher is on shaky legal ground.

"To suggest their silence is consent is just going a step too far," she told 1 NEWS.

"You've got a breach of the duty to be active and communicative, but also you've got an issue around consent, is this agreement to such a hefty pay cut?" 

Senior executives still working will take a 15 per cent pay cut, but workers aren't impressed.

"So they'll still be earning 85 per cent of their huge wages," a second worker told 1 NEWS.

"Meanwhile the people actually keeping the company going, making the product, they have to suffer a lot."

Fletcher declined to be interviewed but told 1 NEWS the short consultation period was due to the rapidly evolving situation.

1 NEWS have been leaked a letter to staff outlining the proposal. (Source: Other)

It believes the vast majority of staff understand that and are on board with the proposed wage cuts.

Finance Minister Grant Robertson is asking the staff and company to work together.

"I just urge Fletchers and the union to work together to make sure that employees feel they've got the time to consider the offer," he says.

Fletcher expects to play an important role in the recovery after the lockdown but there are now questions about whether it'll still have the support of its staff.

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