Pay cuts on the way for some Auckland Council staff as Covid-19 bites revenue

Source: 1News

Auckland Council staff earning more than $100,000 a year have been asked to take pay cuts, as the impact from Covid-19 brings unexpected costs and falling revenue.

Auckland Mayor Phil Goff.

The council confirmed measures to try and reduce the financial impact of Covid-19 have been agreed to today.

The voluntary pay cuts will be implemented over the next six months, chief executive Stephen Town says.

"This will be a tiered approach, meaning a 5 per cent reduction for anyone earning between $100,000 and $175,000, a 7.5 per cent reduction for anyone earning between $175,001 and $275,000 and a 10 per cent reduction for anyone earning above $275,001."

Mayor Phil Goff says it's tough but necessary action.

Also on the table is the possibility of limiting or cancelling this year's annual remuneration review for staff.

Mr Town says the council is in discussion with union PSA in regards to that, set to continue over the next few weeks.

PSA says it's going to closely monitor the voluntary pay cut proposal, especially its potential impact on workers earning less than $100,000 a year.

"Those earning in the top brackets of $100,000 a year or more can make their own decision about whether they wish to take voluntary pay cuts during this crisis," PSA national secretary Glenn Barclay says.

"We strongly oppose any pressure to take a pay cut being put on workers earning well below that amount, whether it comes from on high or from colleagues. 

"Auckland is an expensive city to live in, and council staff have bills to pay like everyone else."

He says only a small percentage of Auckland Council staff earn more than $100,000, highly experienced and skilled workers in specialised roles.

Mayor Phil Goff earns a salary of $296,000.

Earlier this month, lobby group Auckland Ratepayers Alliance released a list claiming 85 people at the council are paid more than $250,000 a year , with six paid more than $500,000.

The Auckland Council disputed the release, saying there are inaccuracies in the numbers.