A Robin Hood -style policy, redistributing the big salaries of public service chief executives to lower paid workers, would be more effective than the government-ordered pay freeze, according to a leading business academic.
The directive, which essentially means those in the public sector earning more than $60,000 will only get a pay rise in exceptional circumstances for the next three years, has infuriated some workers.
It has prompted crisis meetings between the government and unions, and a commitment to review the directive next year.
The government denies it is a freeze , saying people can still move between pay bands and it is about equity, raising the wages of workers making $50,000 or less – that is 25 percent of public servants.
Pay freeze: Redistribution of public sector CEO salaries better, finance expert suggests
14 May, 2021 08:08 PM
7 minutes to read
A finance expert says we need to talk more about pay redistribution, not freezes. Photo / Getty Images
A finance expert says we need to talk more about pay redistribution, not freezes. Photo / Getty Images
RNZ
A Robin Hood -style policy, redistributing the big salaries of public service chief executives to lower-paid workers, would be more effective than the Government-ordered pay freeze, according to a leading business academic.
The directive, which essentially means those in the public sector earning more than $60,000 will only get a pay rise in exceptional circumstances for the next three years, has infuriated some workers.
Some public sector leadership salaries:
Matt Whineray, CEO NZ Super Fund: $929,000 (after COVID-19 reduction)
Scott Pickering, CEO ACC: $826,000
Ailsa Claire, CEO ADHB: $677,000
John Ryan, Auditor General: $670,000
Peter Hughes, Public Service Commissioner: $630,000
Rob Everett, CEO Financial Services Authority (just resigned): $623,000
Cherly de la Rey, VC University of Canterbury: $594,000
Tim Fowler, CEO Tertiary Education Commission: $560,000
Judge Peter Boshier, Chief Ombudsman: $456,000
Sid Miller, CEO Earthquake Commission: $437,000
A lower public sector staff salary:
Jane Doe, administrator Dept of Corrections: $45,000
Helen Roberts is an Associate Professor in Otago University Department of Accountancy and Finance. She put those remuneration packages into perspective. I just looked at the data that s out on the public sector websites, you can go and look yourself. I looked at the top five paid individuals in the state sector who were full term.
Between $60,000 and $100,000, increases will only be available if there is “serious recruitment pressure”. Those earning less than $60,000, or about a quarter of the 429,500-strong sector, will still be eligible for increase.
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Rates of pay across sectors. When they laid out the plans, Ministers Chris Hipkins and Grant Robertson said they would not include any provision for inflation or cost of living increases - “because public sector pay had outpaced inflation and private sector pay prior to Covid-19”. Carolyn isn’t convinced. “I think I am well-paid but I think it’s commensurate with the job I do. In the year to June last year, the average salary was $84,500, up 3.9 per cent from the previous year. The median public sector salary was $72,600. Public sector workers take an average 7.6 sick and domestic leave days a year, down from 8.6 in 2016.
Investing for good - the new moves to take the nasties out of your KiwiSaver
30 Apr, 2021 05:32 AM
15 minutes to read
Fossil fuel investments must be excluded under the new default KiwiSaver provider appointments. Photo / File
Five years ago, KiwiSaver investors were shocked to find their retirement savings were propping up companies involved in cluster bombs, landmines and tobacco. Fund managers pulled out of the investments, black-listing a range of companies in those sectors and building exclusion lists to make sure they kept onside with members.
Now a new group of exclusions are set to be added to the list of companies that KiwiSaver providers will either have to avoid, or make an active decision to include or exclude.