Councils don’t want to cut pay because they provide essential services
Upper house MP John Darley has called on council executives – some who earn more than $300,000 – to take a small pay cut during the coronavirus pandemic to help soften hits to their budgets – but councils are pushing back.
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Council executives and staff have been called on to take a pay cut during the coronavirus pandemic – but the sector has hit back saying they are an “essential service”.
Councils have confirmed to The Advertiser that no staff have taken a cut on their pay, despite a high likelihood their budgets will be hit by rates and fee losses.
Multiple councils have already instituted rate relief measures for residents and cut or abolished fees to sporting clubs on their homegrounds.
State Advance SA upper house MP John Darley has called for the local government sector take a small pay cut – in line with changes across much of the private sector – to help the budget bottom line and prevent large rate increases.
Some Adelaide council chief executives are paid more than $300,000 and other executives are paid more than $100,000.
Mr Darley said a small pay cut, such as five per cent, would be “nothing” to help soften the blow to their budgets.
“Shouldn’t we reflect what the general community does,” Mr Darley said.
“I know in the private sector chief executives are taking a cut.
“But if we’re going to be fair dinkum about it we’ve got to sit down and work out how we’re going to fix this.”
He said without a small cut council rates would be “as high as ever”, exacerbated by property revaluations due this year.
Charles Sturt chief executive Paul Sutton said staff should be paid their normal salaries because local government had been declared responsible for “delivering essential services by the Federal Government”.
“Our people, including managers and executives, are working to best support our communities through the continued delivery of services and facilities through this crisis in ways that are safe for our customers, community and staff,” Mr Sutton said.
“As such they continue to be paid as per their contracts.”
Burnside Council said it had redeployed casual staff who would have worked on now-cancelled functions to other essential services, particularly those that might have been staffed by volunteers.
Local Government Association president Sam Telfer said: “The state and federal governments have made it very clear that they view local government as an essential service”.
“This is supported by advice the LGA has received from Norman Waterhouse.
“There is an expectation that councils will play a critical role in assisting communities through this crisis, and in economic recovery.”
Adelaide City Council is the only council to have sent staff home on leave.