Fletcher Building proposes massive pay cuts for employees over lockdown period

One of the country’s biggest companies, Fletcher Building is planning big wage cuts for staff not working during the lockdown.

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1 NEWS have been leaked a letter to staff outlining the proposal. Source: 1 NEWS

1 NEWS has been leaked a letter to staff outlining the proposal which is asking the 90 per cent of staff around the country not currently working to take pay cuts. 

Fletcher Building employs 10,000 people around New Zealand and is asking its employees to be paid 80 per cent on average of their wages for the first four weeks of lockdown. 

For the following four weeks it would drop to 50 per cent and the four weeks after that, a 30 per cent cut. 

Senior executives still working would take a 15 per cent wage cut. 

Fletcher Building told 1 NEWS it is accessing the Government wage subsidy scheme and that all subsidies would be passed on to employees.

Employment lawyers have told 1 NEWS in situations like this employers must consult before taking and making pay cuts, but Fletchers has said it is engaging in a short consultation process at the moment. 

Employment lawyer, Steph Dyhrberg says on an "ordinary day at work you can't unilaterally reduce someone's pay".

"However can you say in these circumstances, if people aren't able to work, you are not able to provide them with work then those circumstances mean that the employee is not really willing and able to work - and arguably should they continue to be paid?

"I think the jury is out among 40-odd experts in the Wellington Bar on that," she says.