Board Resolution
REA Board 15 November 2022
Name:
Real Estate Authority
Date:
15 November 2022
Time:
2pm
Location:
Zoom
Board Members:
Denese Bates (Board Chair), Mele Wendt, Vern Walsh,
Tony Stack, Liz Nidd, Latham Lockwood
Apologies:
Nil
Attendees:
Belinda Moffat, Andrew Bulled
1.1 Public Sector Pay Adjustment
1.1 Public Sector Pay Adjustment
The Board considered contents of a special paper outlining the Public Service Commission’s
(PSC) Public Service Pay Adjustment Process (PSPA) and management’s recommendation of
whether REA should opt into the PSAP process. The Board heard from the Chief Executive
with a further revised recommendation not to participate in the PSPA process at this stage.
1.2 Discussion
1. The Board were advised that the question for consideration was whether or not REA
should opt in to the PSPA process. If REA opted into the process, it would have the ability
to opt out if the settlement terms were not acceptable.
2. The CE noted that REA was in a unique situation that made entering into a pay
settlement that resulted from a collectively bargained process between a union and lead
negotiator from the Public Service highly unusual. REA’s unique situation included:
All of REA’s staff are on individual employment agreements (IEAs)
REA does not have a relationship with the Unions, and does not have any collective
agreements.
REA is fully funded by real estate licensees, through levies, fines and other income
(purchase of guides and interest) and does not rely on Government funding
REA does not currently have any baseline funding pressures holding healthy reserves
which would enable it to improve staff pay once the PSC pay restraints are removed.
Remuneration increases can be funded through our existing equity reserves.
REA is facing labour market and retention and attraction challenges due to pay
restraints.
REA has an independent board which has governance responsibilities under the Real
Estate Agents Act and Crown Entities Act.
1
3. The Board considered the above and noted further:
a. Board shared management’s desire to reward staff fairly
b. However, the Board raised concerns about opting into the process. These
concerns included:
REA has no obvious ability to influence the terms of any PSPA
settlement or certainty of those terms.
The unknown impacts upon REA’s relationship with staff from opting
into a collectively bargained process with unions.
There is no certainty of the likely outcome of the PSC pay guidelines
review.
The importance of the governance responsibilities of our independent
board in relation to fair and equitable treatment of staff including
obligations towards fair and equitable pay. The Board has historically
made remuneration decisions as a prudent and responsible entity in
line with Crown Entities Act and good employer obligations, guided by
our remuneration policy.
REA and its Board need to be empowered to address the retention and
attraction challenges it face. It is unclear whether the settlement will
resolve REA’s pay challenges over the proposed two-year settlement
period.
REA did not require additional funding to improve pay.
4. On consideration of the above points, it was determined that REA did not currently have
sufficient information to make an informed decision on whether we should opt in or opt
out of the PSPA process.
5. The board asked that Management continue to monitor the PSPA progress and keep the
Board informed of developments.
6. Management to obtain further legal advice on whether the Board can exercise its
independent decision-making responsibilities with regard to staff pay.
1.3 Resolution
The Board resolved not to opt into the PSPA process and instructed the Chief Executive to inform the
Public Service Commission of its position and the key drivers for the decision reached.
Signed:
Date: 6 December 2022
Denese Bates KC, Board Chair
2
