Auckland councillors, the mayor and the Maritime Union are demanding an explanation on a near $1.8 million payout to former Ports of Auckland chief executive Tony Gibson.
Gibson resigned in May following mounting pressure in relation to automation project disruptions and health and safety issues with three recent deaths at the port.
The port’s annual report shows an unnamed resigning executive was paid between $1.78m and $1.79m in the year to June 30. In the previous financial year Gibson was paid $820,000.
Maritime Union of New Zealand national secretary Craig Harrison says the payout went to Gibson and “is incredible in the circumstances”.
An independent report released earlier this year into health and safety at the port identified systemic problems, and port management faced heavy criticism from the port’s owners Auckland Council and the Government.
The Ports of Auckland Limited and Gibson are now both facing charges under the Health and Safety at Work Act 2015 filed by Government agency Maritime New Zealand following the death of a stevedore in August 2020.
Harrison says the “million dollar question” is how this was an appropriate decision.
“This is ratepayers money that has been handed to someone who is about to appear in court on health and safety charges around the death of a worker.”
He says the payout shows a “corporate culture of impunity where senior managers are handed unreal amounts of cash even when they have failed in their roles”.
Meanwhile, a letter signed by mayor Phil Goff on behalf of the councillors says the payment went against a “no surprises agreement” between the port and council. It was addressed to outgoing Ports of Auckland board chairman Bill Osborne.
“Given that the chief executive had resigned, council members do not understand why a payment of this sum was required.
“It was deemed inappropriate when the port is suffering from a poor financial position and the dividend to shareholders was a small percentage of its normal level,” it said.
