Yesterday Adrienne wrote an excellent post about winners and losers in accounting during the coronavirus pandemic. I’ve got one to add to the losers side: Deloitte Australia employees.
Why? Not only have most Australian Green Dotters taken a 20% cut in pay since May (which CEO Richard Deutsch said was “the least worst option” to preserve as many jobs as possible at the firm), but they also ended up having to witness the firm bringing the hammer down on 700 of their colleagues in June.
One anonymous Deloitter who talked to The Sydney Morning Herald recently expressed his or her displeasure with how the firm handled its pandemic austerity measures (bold emphasis added):
One of the Deloitte employees said pay packets should have been immediately reinstated once the company cut jobs. “After all the pay cuts were to avoid job losses.”
“After the redundancies the headcount matched production of the firm and therefore everyone is busy with work – no reason therefore to continue pay cuts. The only reason to continue pay cuts it to protect partner profit.”
Staff signed up to the in-house superannuation scheme also had life insurance payouts reduced by 20 per cent and many claim they were not told about these changes before they were implemented.
The employee said morale at the company had been destroyed as trust in the company’s strategy has been eroded. “This has hit employees hard. The integrity of the firm is gone.”
The 20 per cent pay cuts applied only to workers earning more than $65,000, are set to be reversed on October 1. Partner pay was cut by 25 per cent.
This person isn’t the first Deloitte Australia employee to flame management over the pay cuts. An analyst in audit and assurance got his 15 minutes of fame around the usual chatter sites in April by sending the following letter to Deloitte bigwigs.
‘The integrity of the firm is gone’: Deloitte, KPMG staff angry at pay cuts [The Sydney Morning Herald]