RFU risks staff revolt over executive bonuses while cutting overtime 15/09/2009 |
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Angry employees of the Rugby Football Union have confronted its chief executive, Francis Baron, about severe budget cuts designed to tackle falling revenues and growing debts.
At an all-staff meeting at Twickenham last week the RFU chief executive was asked to explain why overtime has been at the centre of a £5m cost-reductions plan.
For an organisation that is so heavily reliant on weekend working, the move was always going to be controversial among junior staff who rely on overtime to boost incomes. Strict limitations on expenses have also gone down badly.
The RFU's debts have risen to £46m in the past 12 months and Baron explained that the overtime cuts would "cause much less pain than redundancies". But Baron and his fellow executives are risking a staff revolt by maintaining a management bonus scheme at pre-credit-crisis levels.
A proposal to reduce bonuses by 50% or forgo them altogether was rejected. "It is not the directors who decide on director bonuses but the independent remuneration committee which decided to maintain them but only as long as the appropriate business measures were achieved," said Baron.
The RFU did not return calls but presumably one performance indicator for RFU management will be the successful implementation of cost-savings plans. So RFU staff taking less out in overtime can at least console themselves that they are helping bosses meet their bonus targets.
(Source: Guardian.co.uk)
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