Deloitte looks for pay cuts

Deloitte Consulting intends to cut staff pay in New Zealand and Australia by an average of 10%.

Deloitte Consulting intends to cut staff pay in New Zealand and Australia by an average of 10%.

The company, in a written statement, blamed "changes in the management consulting market across the region".

"Constructive discussions with the affected individuals continue and the firm will adhere to the New Zealand legislative framework during these discussions," says the statement.

Deloitte Consulting declines to say how many staff it employs in New Zealand, but it and Deloitte Touche Tohmatsu employ 160 in Auckland and Wellington overall.

In Australia, 600 technology staff and consultants also face pay cuts, following a decline in company revenue by 19%.

Tony Wilton, general counsel for the IT workers union, the EPMU, says the negotiations reflect Deloitte Consulting recognising that it cannot change people's terms and conditions without their agreement.

"What companies normally do [in these cases] is to raise the spectre of job cuts and redundancies," he says.

In Australia Deloitte has ruled out redundancies, saying it needs its staff and therefore redundancy does not apply.

But the company faces being hauled before its Industrial Relations Commission for giving employees no alternative but to accept a salary cut or termination.

Union leaders there warn that allowing Deloitte Consulting to cut pay in this manner has implications for other employees and Deloitte should consider offering redundancy packages.

The salary move follows Deloitte Consulting announcing in July that it would separate from Deloitte Touche Tohmatsu and rename itself Braxton.

Steps are underway for the name change, but the company declines to say when this will happen.

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