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Barry Lichter

TAB staff cuts will save $10 million - but what about the fat cats?

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'The programme of Government-led transformation had also been delayed.'

What details do you have on this.

Will this now be left to the incoming government.

Leave a shambles and walk away.

 

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It makes me bloody wild.
It’s all back to front.
They are destroying what’s good about the TAB, Trackside, Radio Trackside and the little people and keeping the Fat Cats, who made the mistakes, their ridiculous salaries, the crap platform, rebates, bonus bets etc. 

If ever there was a time to get back to basics, this is it. 

Wall to wall racing! Get lost to that idea, is my opinion 

Sorry Dean and the Board, Vella etc you have failed me let alone all the good hard working staff, who created none of this. 

 

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Why did you apologise to Dean and the Board? Should they not apologise to you and all Racing people.

DM is not the man for the job. This required a ruthless person, one who can make tough decisions and sway the Board and who puts the industry in front of self interest.

When the tide goes out you get to see the people swimming without clothes.

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$10 million in savings from TAB staff cuts - with increased centralisation next season

Barry Lichter

By Barry Lichter • 11 May 2020 

The TAB is expecting its sweeping staff cuts to save $10 million a year.

But while that number suggests redundancies will mostly come at the middle to bottom end, management says it has also begun a review of the executive leadership team.

With a wage bill of $61.5 million last year, a $10 million saving is only a 16% reduction, but the Racing Industry Transition Agency is reducing its head count by 30%.

The top six TAB executives earned a total of nearly $2.5 million between them last season. Former CEO John Allen’s salary was $690,000 to $700,000, the next two earned between $380,000 and $398,000, and three others took home $360,000 to $370,000, $320,000 to $330,000 and $310,000 to $320,000.

Staff were told at a meeting today that all areas of the business and all teams would be impacted.

“There was already a need for RITA/TAB to become a more commercial, leaner business but we’ve had to move towards that point earlier than anticipated with a deeper impact due to Covid-19,” consultation letters said.

“The TAB is an expensive business to run and COVID-19 has come when we have been most vulnerable after a period of significant investment.”

The programme of Government-led transformation had also been delayed.

“We predict revenue next year will be down considerably with domestic racing getting back slowly and at fewer venues, uncertainty around the return of quality domestic and international sport and reduced spending by many New Zealanders.”

55 fewer meetings at fewer venues

RITA indicated that the draft calendar for the 2020-21 season will see 55 fewer gallops and harness meetings held in the North Island, reducing from 321 to 266.

They will also be held at fewer venues, many meetings that require significant travel and accommodation dropped.

That, says RITA, means fewer production staff will be required. A core staff of 30 full and part time employees will be kept in the north, with seasonal and casual cover of up to 13 staff to assist. The changes impact 19 present positions.

In the South Island only 25 core staff will stay, with up to six casuals to cover. This impacts 14 present positions.

Fewer gallops and harness meetings will be held in Otago-Southland, with increased centralisation to Canterbury.

There will also be increased centralisation of greyhound racing in the south to Addington.

RITA plans to service South Island meetings from a team based in Christchurch, which will result in 11 of 13 positions in Dunedin being disestablished. Increased efficiencies will be gained through cross-skilling of roles.

Race filming to deteriorate

Race coverage will be reduced significantly with standard meetings having seven staff and only four cameras - three for judicial functions. That number will increase to the present eight cameras for up to 20 marquee events, with 13 staff. Greyhound meetings will have only three cameras and three staff.

RITA has confirmed it will not reinstate racing on its AM and FM radio frequencies which were suspended last month.

Digital streams, carrying a simulcast of its Trackside channels, would be available only via ROVA, the TAB app or website. All radio specific programming will be lost.

Trackside TV will have a total focus on live racing to drive revenue, with more races to be imported and more hours on air. On course presenters will only be used on up to 20 marquee days, leaving Trackside a race-to-race retail type product.

Staff have been invited to provide feedback on the proposed changes.

Final decisions will be relayed on May 25 and the new structure takes effect on June 22.

image.png

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34 minutes ago, scooby3051 said:
 

$10 million in savings from TAB staff cuts - with increased centralisation next season

Barry Lichter

By Barry Lichter • 11 May 2020 

The TAB is expecting its sweeping staff cuts to save $10 million a year.

But while that number suggests redundancies will mostly come at the middle to bottom end, management says it has also begun a review of the executive leadership team.

With a wage bill of $61.5 million last year, a $10 million saving is only a 16% reduction, but the Racing Industry Transition Agency is reducing its head count by 30%.

The top six TAB executives earned a total of nearly $2.5 million between them last season. Former CEO John Allen’s salary was $690,000 to $700,000, the next two earned between $380,000 and $398,000, and three others took home $360,000 to $370,000, $320,000 to $330,000 and $310,000 to $320,000.

Staff were told at a meeting today that all areas of the business and all teams would be impacted.

“There was already a need for RITA/TAB to become a more commercial, leaner business but we’ve had to move towards that point earlier than anticipated with a deeper impact due to Covid-19,” consultation letters said.

“The TAB is an expensive business to run and COVID-19 has come when we have been most vulnerable after a period of significant investment.”

The programme of Government-led transformation had also been delayed.

“We predict revenue next year will be down considerably with domestic racing getting back slowly and at fewer venues, uncertainty around the return of quality domestic and international sport and reduced spending by many New Zealanders.”

55 fewer meetings at fewer venues

RITA indicated that the draft calendar for the 2020-21 season will see 55 fewer gallops and harness meetings held in the North Island, reducing from 321 to 266.

They will also be held at fewer venues, many meetings that require significant travel and accommodation dropped.

That, says RITA, means fewer production staff will be required. A core staff of 30 full and part time employees will be kept in the north, with seasonal and casual cover of up to 13 staff to assist. The changes impact 19 present positions.

In the South Island only 25 core staff will stay, with up to six casuals to cover. This impacts 14 present positions.

Fewer gallops and harness meetings will be held in Otago-Southland, with increased centralisation to Canterbury.

There will also be increased centralisation of greyhound racing in the south to Addington.

RITA plans to service South Island meetings from a team based in Christchurch, which will result in 11 of 13 positions in Dunedin being disestablished. Increased efficiencies will be gained through cross-skilling of roles.

Race filming to deteriorate

Race coverage will be reduced significantly with standard meetings having seven staff and only four cameras - three for judicial functions. That number will increase to the present eight cameras for up to 20 marquee events, with 13 staff. Greyhound meetings will have only three cameras and three staff.

RITA has confirmed it will not reinstate racing on its AM and FM radio frequencies which were suspended last month.

Digital streams, carrying a simulcast of its Trackside channels, would be available only via ROVA, the TAB app or website. All radio specific programming will be lost.

Trackside TV will have a total focus on live racing to drive revenue, with more races to be imported and more hours on air. On course presenters will only be used on up to 20 marquee days, leaving Trackside a race-to-race retail type product.

Staff have been invited to provide feedback on the proposed changes.

Final decisions will be relayed on May 25 and the new structure takes effect on June 22.

image.png

They have all been a fucking disaster judging by latest financial reports so it appears those paid the most ( and whose responsibility it is )  escape while the poor buggers at the sharp end get the DCM........how about basing remuneration on results and achievements..?? Too radical....?? 
:rcf-angry-4:

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$10M is less than 1 month's distribution so they will need a better plan to turn this around.

If it is just to justify a bail out or placate the banks it doesn't buy them much time.

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As I mentioned elsewhere (which didn't go down well with one person),  I don't have first hand knowledge of the six people in the photos above. Are any of them highly competent and indispensable, are any of them poor performers who wouldn't be missed? Some of us have had the advantage of dealing with these people, and other management types, up close, whereas others of us are mere punters or owners with an interest in the industry.

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53 minutes ago, Patiti said:

$10M is less than 1 month's distribution so they will need a better plan to turn this around.

If it is just to justify a bail out or placate the banks it doesn't buy them much time.

An additional motive could be that they see Sports betting as a soft option to safeguard the cozy jobs at the top. No worry about stakeholders or ways of assisting racing. Just take the bets and sit back.

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4 hours ago, We're Doomed said:

As I mentioned elsewhere (which didn't go down well with one person),  I don't have first hand knowledge of the six people in the photos above. Are any of them highly competent and indispensable, are any of them poor performers who wouldn't be missed? Some of us have had the advantage of dealing with these people, and other management types, up close, whereas others of us are mere punters or owners with an interest in the industry.

To date you'd have to say none of them are.

This is an opportunity racing is going to miss to take back some for its own.

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Business 101    -   Avoiding Bankruptcy

1     Slash management to minimum.  Cap salaries at 60% of current.

2     Cease bonuses

3     Hire Contractors & Casual Staff  -  Higher rate is amply compensated for by no  expenses  such as ACC, PAYE, KiwiSaver,  Sick Pay or Annual Leave.  Rate is negotiable.

 

Just a couple of things jump out reading the article   -

RITA plans to service South Island meetings from a team based in Christchurch, which will result in 11 of 13 positions in Dunedin being disestablished. Increased efficiencies will be gained through cross-skilling of roles.

A reliable source tells me that the Christchurch manager has been touting this for some years.  The last time he tried it they were flying in staff to southland meetings from all over the country and the travel and accommodation budgets blew out. 

RITA has confirmed it will not reinstate racing on its AM and FM radio frequencies which were suspended last month.     -

Just like when they ceased freeview TV they will lose a lot of punters.  But then again did they even bother asking their punters ?

 

So just who is advising Mr McKenzie ?  The same managers whose previous decisions have brought us to the current position, therefore will get the same result.

Is there anyone auditing their decisions so in another year when still in the same fix, these decision makers are finally held to account.

 

 

 

 

 

 

 

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20 hours ago, mikenz said:

I kind of laugh with the focus on more live races to drive revenue,gunna need a lot of those 100 dollar pools races to built up income :rcfe-happy-2:

How’s it going to drive revenue ? I see it as turning people of racing. Punters want the whole  package  not a mind numbing experience.

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Honestly, how can anyone who was a part of the new FOB platform still have a job? $50mill + $17mill/year for what is the worst betting platform I have ever encountered.

Not only should every person who was a part of the process be sacked, there should also be an investigation into the whole process?

 

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11 hours ago, Justitia said:

Business 101    -   Avoiding Bankruptcy

1     Slash management to minimum.  Cap salaries at 60% of current.

2     Cease bonuses

3     Hire Contractors & Casual Staff  -  Higher rate is amply compensated for by no  expenses  such as ACC, PAYE, KiwiSaver,  Sick Pay or Annual Leave.  Rate is negotiable.

But unfortunately what you will get is.

1     Get rid of a manager or two to use as a scapegoat and take a 10% pay cut to look like you they doing something at the top level.

2     Cease bonuses until the dust settles and then resume.

3     Fire Contractors & Casual Staff (Already happening starting with trackside) and take no note of the higher rate is amply compensated for by no  expenses  such as ACC, PAYE, KiwiSaver,  Sick Pay or Annual Leave.  Rate is negotiable.

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Every thing should start again from scratch.New board, all reapply, new calendar, new radio coverage, new tv setup, maybe one chanel, you wont grow any sport without decent media coverage,maybe a new website, im not sure about blaming the problems on betting off shore but the nz board need to get money from overseas bookies, if they dont already but that works both ways remember,if communities want their tracks then they have to maintain them for now until a clearer picture starts to emerge, so much to ponder, its so hard to believe a industry once so strong had become so weak, a lot of race meeting recently have been of poor quality, quality need to replace quantity and what do the present lot think will make it better, more races on trackside, what a joke.

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