ABC managing director David Anderson has taken a 5 per cent pay cut until September.Credit:Alex Ellinghausen
Communications Minister Paul Fletcher wrote a letter this week to propose that ABC employees accept a pause in wage increases which would halt a 2 per cent pay rise that was due to come into effect on October 1.
The Australian Public Service Commissioner advised tax-payer funded agencies in early April that the Morrison government had imposed a six-month pause on wage increases. Mr Anderson said the ABC was independent of other APS agencies and that it did not have to ability to alter the working conditions of employees. However,he said he would take into consideration Mr Fletcher's proposal.
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"The ABC decided in April that it was not appropriate in the current environment to pay bonuses to senior executives or any salary at-risk payments this financial year,"Mr Anderson said in the email.
"And as Managing Director,I declined the 2 per cent increase that would have been paid to me pursuant to the remunerational tribunal determination this July. I also requested (and had approved) that my salary be reduced by 5 per cent from April until the end of September. The savings realised from these measures,and other reductions to expenditure this financial year,have contributed to content initiatives during the global pandemic."
Mr Anderson was paid $1.14 million in the 2018-2019 year,including a base salary of $799,000,$73,000 in superannuation and $266,000 for long service leave.
The ABC is the latest media company to announce cost cuts. Commercial media companies like Nine Entertainment Co (owner of this masthead),News Corp Australia andSeven West Media are under immense financial pressure due to the crisis. Significant declines in advertising spending have caused media executives to take pay cuts and renegotiate with lenders. Hundreds of employees at media companies have lost their jobs or are working reduced hours.