Announcements     |   7 April 2020

Significant uptake of Fletcher Building’s Bridging Pay Programme

For more information, please contact:

MEDIA INVESTORS AND ANALYSTS
Christian May
General Manager - Corporate Affairs
+64 21 305 398
christian.may@fbu.com
Aleida White
Head of Investor Relations
+64 21 155 8837
aleida.white@fbu.com

Auckland, 6 April 2020: Over 8,600 employees, have elected to sign-up for Fletcher Building’s Bridging Pay Programme, which has been designed to support them while they are unable to work due to the COVID-19 restrictions.

Almost all of Fletcher Building’s operations in New Zealand are shut down and more than 90% of the company’s people are not able to work.

Chief Executive, Ross Taylor, said: “Last week, we undertook 48 hours of consultation with our people and outlined a package that provided them certainty for the coming 12-weeks, and allowed them the opportunity to plan ahead.

“We have received a lot of great feedback, and an overwhelming response with 93% of our people, who can’t work, agreeing to the Bridging Pay Programme.

“Over the weekend, we have further considered their feedback, which was genuine and included a lot of heartfelt support for each other. 

“It was pleasing to see that our people understand the difficult situation the company is in, but that we are trying to support them. While we cannot keep people who are not working on full pay at this time, our bridging programme means they remain a part of Fletcher Building.

“Consultation is about listening to our people and based on the feedback from affected employees, Fletcher Building will implement further changes to its earlier proposal.

“Our people asked that we watch out for those that might find themselves facing genuine hardship through the lockdown and eventual ramp-up of our businesses. To assist with this, Fletcher Building will be providing additional funding for the Fletcher Building Employee Welfare Fund. This will allow additional support to be provided to those of our people who need it.”

“We were also asked to reconsider the pay cut for our most senior leaders, which includes myself, 11 other senior managers and our Directors, as they thought we could have gone further than the 15% proposed. We have listened to our people and we will be extending that to 30% through this 12-week period. Our Executive Team continues to work throughout the lockdown, to ensure we are best placed for when the restrictions are lifted.” 

Summary of changes to proposal based on employee feedback

  • Fletcher Building and the Fletcher Building Employee Welfare Fund will provide additional support for those in need. Details will be released to our people over the coming days.
  • Extending the pay cut for the Executive Team and Board of Directors to 30% of their salary for the 12-week period.
  • A plan over the coming week, to work with the small percentage of staff who did not sign-up to the Bridging Pay Programme.