Senior executives at Australia Post may be awarded up to $7 million in bonuses this year after the organisation reported record revenue.
AusPost chief executive Christine Holgate is currently the highest paid public servant in Australia, earning $2.7 million in pay and bonuses last year.
Holgate told staff in late March that senior executives would take a 20% pay cut and “forsake any right to a bonus payment” to mitigate the financial impacts posed by the coronavirus pandemic. Around the same time, the federal government imposed a six-month wage freeze on Australian Public Service employees.
AusPost on Thursday announced record revenue of $7.5 billion and a profit before tax of $53.6 million. The following day, it was reported that Holgate had taken a proposal to the board calling for executive bonuses to be paid, but a final decision had not yet been made.
“The executive team offered to forgo a bonus in March. Whether they are paid or not is a decision for the board,” an AusPost spokesperson told the Sydney Morning Herald.
The organisation recently announced it would hand out “thank you payments” to more than 33,000 staff for their efforts during COVID-19.
Posties, parcel delivery partners, parcel and mail processing staff, call centre workers, Post Office licensees, and delivery drivers were among those to receive an average payment of $600.
Holgate said it was important to “thank those who continue to work so tirelessly” during COVID-19.
“I am so pleased to include our valued partners in this payment,” she said.
“It truly is a team effort.”
The board has also approved bonuses for 2500 contract employees who are eligible for performance or sales incentives due to the record revenue for FY20.
While total revenue grew by more than $500 million due to a boom in online shopping amid the pandemic, losses in the letters business and network costs meant profit before tax was up by just $13 million compared to FY19.
In response to COVID-19, the organisation and the union have signed a memorandum of understanding to ensure that no employees would be made involuntarily redundant during the period ending August 9 2021.