Ditching performance pay for CEs is great, now finish the job

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Performance pay is unfair, discriminatory and deserves to be consigned to the dustbin of history - and now the public service needs to get on and finish the job, the PSA says.

State Services Minister Chris Hipkins has announced performance pay for public service chief executives has been ended, with a potential saving of $4 million by 2021/22.

"We are delighted that Minister Hipkins has taken the move to ditch performance pay for chief executives - and we commend those chief executives and the State Services Commissioner for entering into this agreement," PSA National Secretary Glenn Barclay says.

"Chief Executives in the Public Service should deliver ‘exceptional performance’ because it’s their job - not just because they’d get an additional 15% in their back pocket.

"This sends all kinds of messages that go against the spirit of collaboration and leadership that are essential to delivering excellent public services to all New Zealanders."

The PSA opposes performance pay at all levels of employment, and now it’s encouraging the State Services Commissioner and public service agencies to get rid of it altogether.

"We have never accepted that pay is a ‘reward’, and it should never be used to incentivise workers," Mr Barclay says.

"Performance pay undermines collaboration and teamwork, and it is a key driver of unfair pay outcomes for women, Maori and Pasefika and other disadvantaged groups.

"We note Minister Hipkins’ statement that ‘performance pay is counter-productive to the collaborative team-based approach and collective leadership that is critical to achieving better outcomes for New Zealanders’.

"We agree - and we are very pleased public service Chief Executives think so too.

"We now call on them to dump performance pay across the board in their own organisations, and we look forward to pursuing this during collective bargaining."