3,000 Auckland Council staff have given up part of the 1.9 per cent pay rise they were due to get this month, in recognition of the local body’s budget problems.

The pay rise will be lowered from 1.9 per cent pay rise to 1.3 per cent. The sacrifice is partly offset by the granting of one day’s additional leave for union members, and improved backdating for any redundancies.

The Auckland Ratepayers Alliance aren't satisfied that this decrease will help, calling it all smoke and mirrors.

“The 3,000 staffers, who are also members of the PSA, have very generously agreed to a pay increase of 1.3 per cent instead of the planned 1.9 per cent. But it’s all smoke and mirrors, because it’s being offset by an additional day of leave. Despite Mayor Goff’s rhetoric about cost cutting and savings, this pay increase is still going to cost ratepayers millions of dollars – and that doesn’t include the extra resources needed to cover the lost hours as a result of the extra day off.”

The deal is separate from council plans to cut 500 or more jobs as part of its pared-back Emergency Budget this year, which reflects a Covid-19-related revenue hit of around $475 million.

Auckland Council has not yet released any detail on identifying how many and which jobs would be cut as part of the budget settled in July.

Senior executives across the council group and the mayor have taken pay cuts of between 10 to 20 per cent for six months in response to the budget pressures. Separate negotiations continue with council agencies such as Auckland Transport.