John Delaney plays hardball with FAI staff over pay cuts
It seems like the looming row between the FAI and their staff regarding pay cuts isn’t going away any time soon.
As we told you a few weeks back, the cost-cutting measures being proposed at the FAI are causing big problems and chief executive John Delaney is starting to play hardball.
According to reports in today’s Irish Independent, Delaney has sent a letter to all staff asking that they accept a 10 per cent cut by this Friday. Seven people are also set to be laid off.
Delaney himself took a cut of 10 per cent last month, bringing his yearly wedge down to €360,000 a year from €400,000, but the staff facing the cuts are earning on average between €30,000 and €40,000 per annum.
The paper suggests that if the staff do not accept the pay cut, more redundancies will be sought and they quote passages from the letter such as the need to "protect jobs and to assist in the future sustainability of the organisation".
"You were advised that this would involve changes to be made to your contract of employment including a salary reduction and a suspension of contributions to the pension scheme," Mr Delaney also says in the letter.
"As you are aware, this request is necessary in the current climate and your acceptance is vital in order to achieve the necessary savings."
Talks between the unions and management are ongoing but it looks like we are heading for an impasse.