Printing Industries says its members are 'blown away and horrified' by news that Australia Post CEO Ahmed Fahour is being paid $5.6 million a year.
"He's not worth it because he's not delivering," says PIAA CEO Andrew Macaulay. "If he was delivering a better, faster mail service then probably no one would complain but in fact it's a slower and more expensive mail service."
A senate committee this week revealed Fahour was paid a $4.4 million salary and a $1.2 million bonus last financial year, making his total package $5.6 million – 10 times more than the amount earned by Prime Minister Malcolm Turnbull.
After receiving a phone call from the Prime Minister, Australia Post chairman John Stanhope agreed to discuss the matter at the national carrier's next board meeting. Stanhope will also appear before the senate committee and be asked to justify the salary.
"When the chief executive of the organisation has not delivered the full internal cost savings that he has publicly stated, then to make up for those shortfalls uses monopoly power to arbitrarily raise mail prices - that would seem to be a failure of management," says Macaulay. "One questions the judgment of the board in deciding to give him a discretionary bonus.
"What's even more extraordinary, he's also on a defined benefits super scheme which is 60 percent of his final salary, so if he retired today he'd be on a million dollars for the rest of his life. That's after his $4.3 million lump sum payment upon retirement.
"We will be talking to Senator James Patterson about this further. But leaving aside the disproportionate salary and benefits, all paid for by the taxpayer, it's the performance of the organisation that is in question.
"How can the board and the ministers involved approve this contract when the organisation itself is under sustained criticism from its major customers for increasing prices and using its monopoly to deliver lower delivery standards at a higher cost?
"Our members are blown away and horrified by the breathtaking amount of money involved.
"The private sector mail industry is constantly seeking efficiency gains and all Australia Post is gouging those private sector gains. It's not good for productivity, investment or employment.
Australia Post, which had argued that releasing the salary information could cause “brand damage,” said in a statement: Mr Fahour’s total remuneration package takes into account the size and complexity of the organisation, which has an annual turnover of more than $6 billion.