Coronavirus: Fletcher Building receives $66.3m through Covid-19 wage subsidy scheme

Tuesday, 14 April 2020

It's been a tough few months for Fletcher Building.

Fletcher Building has received $66.3 million from the Government's wage subsidy scheme to support more than 9000 workers.

The country's largest construction company has implemented a 12-week pay plan, where staff who were not working, or working part time would receive 65 per cent of their salaries for two weeks until April 22. Then salaries would drop 50 per cent for the next month, and by 70 per cent the following month.

Last week chief executive Ross Taylor said of its 9000 employees, 8600 members had taken up the pay proposal. He also said the company's employee welfare fund had 'greater capacity to support financial hardship' for those who 'need it the most'.

The construction company's proposal would have seen senior staff including CEO Taylor take a 15 per cent cut, but that was increased to a 30 per cent cut after staff said they were bearing the brunt of the financial impacts of Covid-19.

According to the wage subsidy employer register Fletcher Building received $66.3m for 9485 workers.

The $585-a-week subsidy requires employers to use their best efforts to pay people up to 80 per cent of their pre-lockdown wage.

**READ MORE:

Fletcher Building has received $66m from the Government's wage subsidy scheme.

* Coronavirus: Fletcher employees feel 'stabbed in the back' by pay cuts

* Fletcher Building says it hasn't misled workers over wage subsidy

* Fletcher Building executives double pay cuts to 30%**

Meanwhile competitor Fulton Hogan received $34m for 4883 employees.

A Fletcher Building spokeswoman said the company was 'very appreciative' of the Government's support through the scheme.

Fletcher Building reported a profit after-tax of $164 million last year.

'This funding contributes to maintaining our workforce through the 12-week lockdown and restart period while addressing the significant financial impacts of the ongoing closure of our operations.

'It forms one key part of the total support package which provides the more than 90 per cent of our people who are not working with certainty around their pay over the lockdown and restart period.'

The Fletcher payment is among the highest seen from the scheme so far, with the Warehouse Group receiving $67.7 million from the Government's wage subsidy scheme to support the jobs of over 11,000 staff.

Kmart, Kathmandu and electronics and furniture retailer Harvey Norman have also had payouts, with Harvey Norman receiving $12.7m for its 1850 staff.

Fletcher Building reported a profit after-tax of $164m last year.

Last week the company said it was passing on the full government wage subsidy to employees and that its pay proposal was 'in line with the Government wage subsidy to provide our people certainty to allow them to plan ahead'.

'As we work through the lockdown period and restart process, as we are able to bring our people safely back to work, they will return to their normal hours and pay even if it is within the 12 week period.'