Union anger over $1.8m payment to chief executive

AUCKLAND: The Maritime Union is furious outgoing Ports of Auckland chief executive Tony Gibson was paid nearly $1.8 million before leaving the company.

Mr Gibson, who resigned in May, is facing health and safety charges over a stevedore’s death last year.

That death is one of three linked to the Ports in recent years, along with multiple injuries.

Before leaving the job, Mr Gibson was on a salary of about $820,000 — the highest paid employee there.

But the latest annual report shows payment to a resigning employee of between $1.78 million and $1.79 million in the last financial year.

Maritime Union of New Zealand chairman Craig Harrison said that payment went to Mr Gibson, and that he was sickened to see how much the figure was.

‘‘There’s been deaths at the Ports, and the trauma that those families have suffered and gone through over the last year, and just to see someone walk away from the Ports of Auckland with so much money.

‘‘Over the years I’ve seen workers lose their jobs for sometimes trivial stuff, and it’s had a big impact on their lives — and there was nothing in the way of packages when they went,’’ he said.

Employment lawyer Kathryn McKinney said $1 million was a significant payout for any departing executive.

‘‘When someone of a senior level leaves, sometimes a separate new agreement is reached — an ‘exit agreement’ — and they often do come with confidentiality clauses around them as well, which might have fallen into part and parcel of this exit sum.’’

In a statement, a spokesman for the Ports of Auckland said the board had to take into account existing contractual arrangements between the company and Mr Gibson, which included confidentiality.

Auckland Mayor Phil Goff said Auckland Council was neither consulted nor advised of the board’s decision to make the payment.

‘‘While the board has the authority to do this, it is not a decision either agreed to or supported by council.’’

Mr Gibson will make his first court appearance in relation to the health and safety charges later this month. — RNZ