Monday, November 2, 2009

No Pay Rise Good Public Relations

Dunedin City Council chief executive, Jim Harland, and most of the Council's senior have declined a pay rise this year, due to economic circumstances. This is certainly good public relations, especially given the large pay rise recently given the Christchurch Council's chief executive.
But Jim Harland already well-enough paid after last year's 10% increase to $335,000. In any case, he could hardly have expected much more than the 2.5% increase that he has recently negotiated with DCC staff. And after recent Council blunders, such as the parking debacle, the Council's Performance and Appraisal Committee may have found it difficult to justify any pay rise at all.
Jim Harland talks of negotiation but any change must be agreed by both sides. If an employee is not happy with their salary, then they are free to find an employer who will pay them more.
Council management soon faces the challenge of producing a budget for next year with a reasonable rates rise. Jim Harland has shown a talent for spending money in good times, he is yet to show that he can save money in difficult times.

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