Pacific CEO's salary obscene: ACTU

27 Feb 2009, 9:07 am   -   Source: AAP/SBS
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Australia's top union boss has attacked the chief executive of Pacific Brands, labelling her 170 per cent pay hike last year 'a corporate crime'.

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Australia's top union boss has launched a scathing attack on the chief executive of Pacific Brands, labelling her 170 per cent pay hike last year "obscene" and a "corporate crime".

It's been revealed the total remuneration for Pacific Brands' 13 directors more than doubled last year as the company planned to sack more than 1,800 workers. Chief executive Sue Morphet's pay jumped from $685,775 to $1.86 million.

"It's obscene," ACTU president Sharan Burrow told ABC Television. "Corporate Australia, it would seem, has lost its moral compass."

Ms Burrow said the Bonds owner was cynically moving offshore to increase profits, despite receiving $15 million from taxpayers over the past two years to reskill and retool. "It's a crime, it's a corporate crime, there's no doubt about that."

Pacific rejects salary claims

But the company says Ms Morphet's pay increase was the result of a promotion from general manager of the underwear and hosiery division to Pacific Brands' CEO.

"Her remuneration is approximately half that of the previous chief executive officer, a decision taken by the board and incoming chief executive officer," a statement from the company said.

Upon her appointment Ms Morphet embarked on a comprehensive review across the business to ensure its ongoing sustainability, it said.

"The outcome of that review was announced earlier in the week and has resulted in the deeply regretted redundancies," it stated.

In sacking 1,850 employees, Ms Morphet was shredding the lives of workers, mainly migrant women who wouldn't be able to get other jobs, Ms Burrow said. "Yet she walks away a wealthy women - it's anger-making.

"There's a rising tide of anger." Ms Morphet should pay back some of her massive salary, Ms Burrow said.

ACTU attacks Trujillo for $30m bonus

The ACTU chief also blasted outgoing Telstra chief executive Sol Trujillo for accepting an estimated $30 million golden handshake, despite sacking thousands of workers during his time at the top.

"This is not the kind of corporate leadership Australia needs," Ms Burrow said. "We need people who are prepared with the shareholders to take a hit on the bottom line this year to see Australia through and keep jobs in the economy."

The union boss said executives should be standing up for decency and she congratulated the federal government for promising to go through Pacific Brands' books. "Anything the government can do to get inside this company to get the real story would be terrific."

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