Rugby Australia has today announced phase one of its planned organisational restructure as the game continues to navigate the impacts of COVID-19.
Over 75% of Rugby Australia’s workforce has been stood down, or on significantly reduced hours since April 1, while senior executive staff have continued to work on a full-time basis with salary reductions of at least 30% since that date. All stood-down staff have been receiving the Australian Government’s JobKeeper subsidy.
Today the organisation has announced a program of cuts that will result in the departure of 47 of its 142 full-time staff over the coming months. A further 30 contractors and casual workers have also had their roles terminated with immediate effect.
The full program of cuts will reduce the company’s current wages bill by $5.5 million per annum.
In addition, Rugby Australia is seeking to implement a 5% reduction in base salary for all senior retained staff to take effect from their return date.
Rugby Australia interim CEO, Rob Clarke said: “Today was an incredibly difficult day for the organisation with many people affected by changes that are necessary to ensure the viability and sustainability of the organisation as a result of the devastating impacts of the pandemic.
“We have delivered the news to staff this morning and told them that Rugby Australia values the contribution of each and every one of them, some of whom have given significant service to Rugby Australia and to the game over many years.
“This is a difficult time for a lot of very passionate, hard-working Rugby people and we are committed to helping those people find their next opportunity, whether it be within the game or elsewhere.”
Clarke said phase two of the restructure is under way and is examining the role of Rugby Australia and the State and Territory Member Unions in delivering Rugby across the country.
“Today we have announced phase one of the restructure of the Rugby landscape, and the next phase will focus on the role of Rugby Australia and the Member Unions to find further opportunities for savings and efficiencies in the way we deliver our Rugby programs and administrative operations across each of our businesses,” said Clarke.
“This second phase involves a significant piece of work that will be managed carefully over the coming months working closely with the leaders of each of the organisations looking at both the delivery of the professional game, and the community game across each State and Territory,” he said.