Since the Liberal/Nationals came to government in 2011, Essential Energy has slashed 1,400 regional jobs – 789 Voluntary Redundancy – with the rest coming from retirement and resignations. They have reduced the number of Essential Energy locations across the state from 147 to 100, and despite the company making a $1.2 million loss in the last financial year, Essential Energy PAID THE NSW GOVERNMENT A $28.1 MILLION DIVIDEND!
Analysis of the Essential Energy Annual Report reveals that the better than expected result in 2015-16 has been attributed to:
“… reduced operating costs, particularly in the area of employee costs, contractor expenses and plant costs. The lower employee costs were a result of lower than budgeted employees during the year.”
On top of revealing an addiction to dividends, the Annual Report, quietly tabled on the last sitting day of the NSW Parliament, revealed that Essential Energy executives all received big pay rises over the 2015-16 financial year with the smallest pay increase for the executive team being 4.1% or a $14,000 pay rise in a single year!
The combined executive increases for the top five earners totaled almost $300,000 which, for a company that is implementing hundreds of job cuts, is nothing short of double standards and betrayal by those that lead your organisation.
Leading the pack was Gary Humphries who pocketed an increase of $219,622 according to Essential Energy’s annual reports for the 2014-15 and 2015-16 financial years, representing an increase of more than 40% while others including Luke Jenner, David Nardi & Caroline Hungerford who all pocketed increases of between $14,000 and $24,550 or between 4.1% - 7.8% in the last year.
These executive pay rises, along with the hefty government dividend, could have been used to fund frontline workers and keep hundreds of people employed but Essential Energy has chosen to distribute almost $300,000 in spoils to just half a dozen people.
The ETU is calling on these overpaid executives to return this money to the company in order to minimise jobs losses. We say put your money where your mouth is – you say you are sorry about the cuts – now show that you are sorry through your actions.
When these people next visit your depot on their “roadshow” be sure to remember that they accepted massive pay increases while at the same time finding ways to put you and your workmates out of a job.