Rugby Australia will be shedding one-third of its employees and cutting salaries of those who make the cut. This is part of the governing body’s attempts to save AU$5.5 million in the first phase of its wholesale restructure. After submitting a financial report for 2019 that contingently flagged a loss in excess of AU$9 million, the RA’s interim Chief Executive Officer Rob Clarke announced these huge cuts as he tries to reshape the impoverished code.
Over 75% of the RA workforce has been stood down or is on notably reduced hours since April 1st and there are many who won’t be returning at all. This is in the wake of Clarke’s announcement that RA would be shedding 47 of the total 142 full-time staff in upcoming months. An additional 30 casual workers and contractors have also had their roles terminated, with immediate effect. The full programme of cuts will lessen the organisation’s current salaries bill by more than AU$5 million.
On top of this, RA is looking to implement a reduction of 5% in the base salary for all senior retained staff members, a change which is to go into effect from the date they returned to work.
Clarke’s statement spoke of how difficult this decision had been to make, pointing out that the RA is not unaware of how many people have been affected by the changes that simply must be made. He explained that all steps are undertaken with one goal in mind, to mitigate the devastating impact of the novel coronavirus COVID-19 pandemic.
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