Stuff boss and owner tells staff that voluntary pay cuts will be refunded

Thursday, 30 July 2020

Stuff chief executive Sinead Boucher says the media firm is in a position to reverse voluntary pay cuts.

Stuff Ltd will refund “hundreds” of staff who agreed to take a 15 per cent voluntary pay cut during the height of the Covid-19 crisis in April.

During the level 4 lockdown, Stuff asked staff earning more than $50,000 a year to consider putting their hands up for a 12-week pay cut.

Chief executive and new owner Sinead Boucher said it had previously been “really pleased” to cut that period to four weeks, last month.

It had done that “when our early recovery post lockdown proved to be stronger than the various scenarios we had modelled out”, she said.

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Now she was “even more pleased” to say Stuff was in a position to pay back the money staff sacrificed during those first four weeks, she told staff on Thursday.

Stuff’s original request mirrored a 15 per cent, 12-week voluntary pay cut requested by rival media firm NZME, publisher of The New Zealand Herald, of its staff who earn more than $50,000 a year.

NZME had been in negotiations to buy Stuff from its Australian owner Nine Entertainment at the time of both the original requests.

MediaWorks asked staff for the option to reduce pay for six months if needed, but stuck to a three-month reduction.

NZME was contacted for comment on whether it was considering any similar review.

Television channel Three owner MediaWorks had earlier asked most staff working for its radio, television and digital businesses to take a 15 per cent pay cut.

Senior managers and those working in MediaWorks’ outdoor advertising business were asked to take a 20 per cent cut.

MediaWorks spokeswoman Karina Healy said it had terminated its pay cuts earlier than allowed for.

”When our people opted in to the pay cut for the initial three month period, MediaWorks had the option of extending it for an additional three months if required,” she said.

“It wasn't required, and the pay cut ended after three months.”

Boucher said the voluntary pay cuts that Stuff staff had agreed to were “a huge ask” and very significant in enabling the company to emerge from lockdown “with everyone's jobs intact”.

But it was important to Stuff that it “prioritised giving you back your money as soon as we were in a stable and strong enough position to do so”, she told staff.

“We all know there are still going to be tough and uncertain times ahead and our revenues, while climbing, are still diminished from pre-lockdown norms as businesses around the country continue to feel the effects.

“Our sales team is doing a wonderful job out in the market and subscriptions are doing well.

“We have also benefited from very careful cost management, which we will continue to keep in place,” she said.