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Fahour’s not worth $5.6m: PIAA

Friday, 10 February 2017
By Graham Osborne

Ahmed Fahour, managing director and CEO, Australia Post

Printing Industries says its members are ‘blown away and horrified’ by news that Australia Post CEO Ahmed Fahour is being paid $5.6 million a year.

“He’s not worth it because he’s not delivering,” says PIAA CEO Andrew Macaulay. “If he was delivering a better, faster mail service then probably no one would complain but in fact it’s a slower and more expensive mail service.”

'A slower and more expensive mail service': Andrew Macaulay, CEO PIAA

A senate committee this week revealed Fahour was paid a $4.4 million salary and a $1.2 million bonus last financial year, making his total package $5.6 million – 10 times more than the amount earned by Prime Minister Malcolm Turnbull.

After receiving a phone call from the Prime Minister, Australia Post chairman John Stanhope agreed to discuss the matter at the national carrier’s next board meeting. Stanhope will also appear before the senate committee and be asked to justify the salary.

“When the chief executive of the organisation has not delivered the full internal cost savings that he has publicly stated, then to make up for those shortfalls uses monopoly power to arbitrarily raise mail prices – that would seem to be a failure of management,” says Macaulay. “One questions the judgment of the board in deciding to give him a discretionary bonus.

“What’s even more extraordinary, he’s also on a defined benefits super scheme which is 60 percent of his final salary, so if he retired today he’d be on a million dollars for the rest of his life. That’s after his $4.3 million lump sum payment upon retirement.

“We will be talking to Senator James Patterson about this further. But leaving aside the disproportionate salary and benefits, all paid for by the taxpayer, it’s the performance of the organisation that is in question.

“How can the board and the ministers involved approve this contract when the organisation itself is under sustained criticism from its major customers for increasing prices and using its monopoly to deliver lower delivery standards at a higher cost?

“Our members are blown away and horrified by the breathtaking amount of money involved.

“The private sector mail industry is constantly seeking efficiency gains and all Australia Post is gouging those private sector gains. It’s not good for productivity, investment or employment.

Australia Post, which had argued that releasing the salary information could cause “brand damage,” said in a statement: Mr Fahour’s total remuneration package takes into account the size and complexity of the organisation, which has an annual turnover of more than $6 billion.

 

 

 

 

 

 

 

 

 

 

 

 

5 Responses to “Fahour’s not worth $5.6m: PIAA”

  1. February 10, 2017 at 12:22 pm,

    P. Rinter
    said:

    Pot calling the kettle black
    Whilst the Aust’Post CEO pay packet is abhorrent, one needs to know how much is Andrew Macaulay being paid? Similar KPI’s at play here, Aust’ Post is a $6 billion business, what is the PIAA’s turnover?
    One has to ask is Macaulay delivering for members? He’s certainly delivering for the Liberal party as once again the PIAA has managed to “name drop” another Liberal Polly into a press release………James Patterson aka the “work experience Senator” who’s only real job was advocating slashing wages and conditions whilst at the IPA.
    Macaulay has picked an easy and populist target in the criticism of Aust’ Post. maybe this should be left to the experts and he starts to advocate on behalf of members, most who don’t have a beef with Aust Post.

  2. February 10, 2017 at 1:42 pm,

    joh
    said:

    considering half this years profit went to so few Post executives, who are they accountable to ? How many more staff lay-offs to keep these huge pay packets going ? Do these top guns pay back when they make huge losses like the $222 million loss last year ?

  3. February 10, 2017 at 2:38 pm,

    Fairgo
    said:

    Come on P. Rinter, that’s a bit desperate and unfair! Macaulay has been in the seat for less than a year and he’s already turned around a crumbling, chaotic situation where there is stability, a voice in Canberra and printers re-joining who had resigned their memberships in disgust. Much to do, yes, but give the bloke a chance – he’s already visited every state and met with members – something his 9-5 predecessor never did.
    I think you’ll find his salary wouldn’t even be one-fifteenth of Ahmed Fahour’s and the industry the PIAA represents is twice as big as Australia Post in revenues.
    If you have ‘no beef’ with Australia Post and you are a printer who uses their services, you must be a masochist mate!!
    As for the Liberal jibe, the’yre our government for now mate…who else is he going to speak with??? The Pope?

  4. February 12, 2017 at 2:01 pm,

    Inky McFee
    said:

    Well said Fairgo – and as a left leaning quasi greenie, i agree that we need to engage with Government regardless of who it is. I would also advocate getting the independent senators on board – even if it is the brainless wonders of Hanson and Roberts – they’re cunning enough to know that increasing prices and lessening services to pensioners and battlers is outrageous (and a fight with a millionaire led Aust Post is a political gift – the fact that he’s a muslim is icing on the cake to Hanson). Also P.Rinter, the PIAA is an industry body, representing the views of the owners and shareholders of its members, not necessarily the workers (that is where the Unions have failed in their duties) so even though i’d never mark a ballot paper in the Libs favour, I’m more than happy for our peak body to talk to them and let them know our issues – If they don’t act then the PIAA should engage with the other side and let its members know.

  5. February 13, 2017 at 3:25 pm,

    Fairgo
    said:

    Thanks Inky. As a reconstructed ‘Trotsykite’ I agree that politics should be immaterial to the PIAA. All I care about is the printing industry and I’ll take help from right, left, in-between plus Calathumpians. Kim Carr was good value for printing under the last lot but sadly he was let down by all the ALP’s shennanigans. The current lot, particularly the PM, are no friends of the printing industry so they need to be dragged kicking and screaming to negotiation tables and educated on the real facts of today’s industry, its importance and what it faces and not listen solely to blue-sky e-dreamers who think it’s ‘just a glitch’ when an entire Census derails, power blacks out states and education standards slip 2 years behind Asia because of over-reliance on screen-based learning instead of text books.
    In all the above, Macaulay et al appear to be on the same page…all except for the Trotskyite part anyway!

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