Helloworld, headed by former Liberal Party treasurer Andrew Burnes, asks staff to take pay cuts

The travel firm, which is headed by a former Liberal Party treasurer, wants to impose pay cuts as JobKeeper ends.

Former Liberal Party federal treasurer Andrew Burnes. Picture: AAP

Travel firm Helloworld, whose chief executive is former Liberal Party federal treasurer Andrew Burnes, is seeking to impose pay cuts of up to 20 per cent on employees when JobKeeper ends in March.

Confidential correspondence revealed by the ALP during Question Time show Helloworld has this week asked an employee to agree to cut their pre-pandemic salary of $75,987 to $60,000 from March 29.

When superannuation is included, the employee’s pre-pandemic remuneration would fall from $83,206 to $65,700. According to the letter, the employee is currently receiving a reduced rate under a JobKeeper directive of $33,283, including superannuation.

The letter, written by Helloworld general manager of human resources Alex Trifonodis, is based on the “forecast revenue of the business and the action bedding to be made to protect our business”. It says the pay cut will be reviewed in November.

 

In a bulletin issued by the Australian Services Union, the ASU says it was “unlawful for Helloworld to demand that workers accept a pay cut or exert pressure on workers to influence their response.

The ASU cited an email to staff from Mr Burnes which it quoted him saying that the board and senior management has accepted significant salary cuts during 2020.

The union said the company’s failure to consult with the union before rolling out the pay cuts was likely a breach of enterprise agreement provisions obliging the company to consult with workers and the union about major workplace changes.

In response to questions from the ALP in parliament, Scott Morrison and Industrial Relations Minister Christian Porter said they had not seen the correspondence. Mr Porter said there was nothing in the government’s proposed industrial relations changes that would allow “for a process such as that”.

ALP deputy leader Richard Marles said he expected companies across the workforce would follow the lead of Helloworld and ask employees to take pay cuts.

“If the government is allowed to put its legislation through, then it’s going to licence this exact behaviour,” he said. “And that’s the issue. Because the government’s out there saying, no one’s going to agree to this. Employers won’t do it. Of course, employers are going to do this, or some employers will, in circumstances where you remove the fundamental safety net.”

The ASU is seeking an urgent meeting with the company. Comment has been sought from Helloworld.