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RACT pay grab slammed


Union leaders are urging around 200,000 RACT members to vote down a steep payrise for the motoring body's board of directors.

The 12 directors are poised to give themselves a 50 per cent hike, bringing their pay to a combined $600,000 a year, at the annual general meeting on November 30.

There are raised eyebrows at the move given workers were asked to take pay freezes last year.

The organisation reported $46 million cash at bank at 30 June, with profit doubling to $8 million. 

The Australian Manufacturing Workers Union's Jacob Batt says it's shocking.

"Roadside patrolmen were out putting themselves at risk, supporting RACT members and the Tasmanian community, yet they were asked to take a pay freeze." 

"The call centre workers were asked to take a pay freeze, so it's a bitter pill to swallow." 

The RACT has told members the increase is justified after it took over 100 per cent of RACT Insurance. 

"It is important that RACT can attract directors with the appropriate skills and experience required of the RACT Board and therefore that RACT Director fees are comparable with those available to those individuals elsewhere and are commensurate with the responsibilities, liabilities and duties required of the role," the organisation said in a written explanation to members. 

"The level of non-executive Directors' fees was last reviewed in 2014." 

Mr Batt has rubbished the claim that the extra RACT Insurance responsibilties justify the move. 

"The board doesn't have the broad range of responsibilities that it once had," he said. 

"They've sold RACT Travel, they've sold RACT Destinations, they've always had to oversee RACT Insurance, they've always had to have that skill set, yet it's actually run also by a separate board.

"I think people should be ringing up RACT and letting management know, letting the directors know, letting the CEO know that this needs to be reviewed...so far it doesn't stack up."