23 Jul 2009

Fonterra to freeze pay of high earning staff

8:46 pm on 23 July 2009

Fonterra has become the latest firm to freeze the pay of some of its staff as it battles the impact of lower dairy prices and a strong exchange rate on earnings.

The dairy cooperative says staff on individual contracts earning more than $100,000 will see their pay left on hold until October next year.

That will affect about 1,000 workers, or a tenth of its workforce.

Fonterra says the freeze does not apply to those earnings less than that and does not affect the three-year collective contract it signed with the Diary Workers' Union in October last year.

In May, Air New Zealand put in place pay freezes and pay limits, as did Tourism Holdings.