ABC managing director David Anderson takes pay cut

ABC managing director David Anderson has taken a pay cut and executives at the national broadcaster will forgo bonuses as it attempts to slash costs during the COVID-19 pandemic.

Mr Anderson told staff in an email on Wednesday that his salary was cut, at his own request, by 5 per cent in April and that the reduction would remain in place until the end of September. The media executive also rejected a planned pay increase, but said he could not enforce a pay freeze on all ABC employees without seeking permission from the Fair Work Commission.

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.

"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 and Seven 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.

Mr Fletcher's request to change staffing policies is the second by the government in recent years. Former ABC chairman Jim Spigelman lashed out at the Turnbull government in 2014 for attempting to influence the broadcaster's staffing policies.

The ABC was forced to delay the release of its five-year blueprint – including job cuts – in March as a result of the pandemic. A three-year funding freeze that took effect last July was estimated to result in an estimated 200 redundancies, which are now on hold.

"All of us are acutely aware of the significant impact COVID-19 is having on the Australian community and wider economy," Mr Anderson said. "In these extremely challenging conditions we are keen to play our role and make an important contribution as the national broadcaster, not only in our core roles in informing, educating and entertaining all Australians but also as a responsible public corporation."