Coronavirus: More Auckland Transport staff volunteer to take pay cuts

Tuesday, 5 May 2020

Auckland Transport chief executive Shane Ellison at Britomart train station.

A third tier of staff at the council agency Auckland Transport has volunteered to take temporary pay cuts in recognition of the financial hit from coronavirus.

The move is estimated to save an unspecified 'millions of dollars' and most staff in the tier have volunteered to be paid less for six months.

Auckland Transport is cleaning buses and trains twice a day to contain the spread of Covid-19.

Those earning more than $100,000 who accepted the cut will lose between five to 10 per cent of their salary, the agency said.

Auckland Transport would not say how many staff are involved but its last annual report showed 500 earned between $100-$259,000.

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'In the past week, an overwhelming majority of eligible staff have opted-in to the reduction,' chief executive Shane Ellison said.

'I could not be prouder or more humbled by the care our people have shown to support Aucklanders and retain jobs in the longer term, by making what is not an easy decision.'

The move is unique within the Auckland Council group, where pay cuts at the council and four other major agencies are limited to 53 senior executives and chief executives and the agency board of directors.

The council company Watercare, which is managing an almost unprecedented water shortage with supply at 46.6 per cent, said it would not be seeking pay cuts as it was a lifeline utility operating in Covid-19 lockdown.

Auckland Transport services are running at near normal frequencies but with a fraction of pre Covid-19 patronage.

'Our ability to do this is reliant on us maintaining a highly-skilled and committed workforce. For this reason, we do not plan to call for voluntary pay cuts,' a spokesperson said.

Auckland Transport confirmed that the previously announced 20 per cent pay cut for its chief executive, and 10 per cent for the second tier, would go into a welfare fund to support other staff hit financially by the Covid-19 lockdown.

The lobby group Auckland Ratepayers' Alliance, which is an offshoot of the New Zealand Taxpayers Union, is unhappy with the creation of the welfare fund.

“It is not a pay cut if the money just goes into a fund for other council staff,' spokeswoman Jo Holmes said.

'A true pay cut is when a council boss’ money is given back to the ratepayer, not to the staffer down the corridor.'

Among other council agencies, the tourism, events and economic arm ATEED has proposed foregoing the $14 million targeted rate on hotels and motels and is making cost-saving moves in line with that.

'We will not hire replacement [staff], extend contracts or create new roles for the near future without my approval,' chief executive Nick Hill said, adding that non-essential spending had been cut.

The financial squeeze has been made as the Council prepares its 2020 budget, forecasting a revenue hit of between $450-650 million due to the impact of Covid-19.