1 Apr 2020

Fletcher Building cuts executives and workers' pay during lockdown

7:40 pm on 1 April 2020

Fletcher Building is proposing to dock its senior executives' pay by 15 percent as it struggles to balance the books due to Covid-19.

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Fletcher Building chief executive Ross Taylor. Photo: RNZ / Claire Eastham-Farrelly

This includes the executive team, directors, general managers and other senior leaders.

But the construction firm's other employees who are not working during the lockdown will have their pay cut by up to 70 percent.

Fletcher said those employees would get an average of 80 percent of their base pay for the first four weeks, but this will be reduced to 50 percent for weeks five to eight, and then just 30 percent for weeks nine to 12.

"We are simply not able to continue to pay all our New Zealand people who are unable to work at 100 percent of their normal pay over the lockdown and ramp up period, " chief executive Ross Taylor said.

Fletcher said nobody's pay would fall below the government wage subsidy unless they already earned less than that, in which case their base pay would remain the same.

The wage subsidies allow a fulltime worker to be subsidised $585 a week, and a part-time worker $350 a week, for 12 weeks.

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