Wellington council’s $200k-plus club quietly keep personal grievance pay
Thursday, 7 May 2026
Wellington City Council chief executive Matt Prosser quietly re-opened the door for a “golden handshake” for his $200,000-plus club, earning a mayoral talking-to when it was discovered.
The Government recently changed the dismissal protections for “high income earners” on more than $200,000 a year, taking away their right to take personal grievance (PG) cases for unjustified dismissal or unjustified disadvantage relating to dismissal cases.
Councillor Karl Tiefenbacher was tipped to be doing the rounds behind the scenes, annoyed after discovering council staff had opted out of the provision.
When approached by The Post on Wednesday, he confirmed he had only heard about the situation from a third party but since had it confirmed by staff.
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“I doubt councillors would have been made aware of the policy change if we hadn’t heard about it from outside the council,” he said.
The decision would have certainly been made by people “earning over $200,000” and likely included council chief executive Matt Prosser, he said.
“It brings into question the conflict of interest scenario,” said Tiefenbacher, who argued it could leave ratepayers liable for payouts they should not need to pay.
The most likely scenario for a personal grievance would be a “malicious” ousted employee as the council was a good employer, he said.
He confirmed elected members were never officially told about it but he had since talked to mayor Andrew Little to express his disapproval.
The council’s 2024-25 annual report had 42 staff earning $200,000 or above. Prosser was in the year to April 2025 paid a salary of $550,000.
Little said he supported the “principle behind” Prosser’s decision as the council was obliged to be a good employer and employees deserved to be treated fairly and have access to due process.
“I have, however, told the chief executive that there is a risk a decision on this issue discussed by senior council employees affected by the law looks like self interest and it would have been preferable for the decision to be brought to the full council, whether or not there was a legal requirement to do so.”
A council statement said the call was made by Prosser and was allowed under the Employment Relations Act.
“The view taken was that access to established employment protections supports a transparent and equitable workplace, and aligns with good employer principles in the public sector. Since 2021, no council employees earning over $200,000 have raised personal grievances under these terms,” the statement said.
The council was asked to clarify if Prosser made the decision alone or in consultation with senior staff. Prosser, a direct employee of the elected council, confirmed he was still unable to take a PG.
Taxpayers’ Union executive director Jordan Williams said it was “simply unbelievable” Prosser would make a decision “so blatantly against the interests of the organisation and ratepayers”.
“This decision effectively locks in golden handshakes at a time when Wellington City Council know they are overstaffed and lacking competence.”
It was grounds for the council to sack their CEO, Williams believed.