Security staff charged with protecting New Zealand's ambassador to Iraq are said to have walked off the job after a pay dispute and claims cost-cutting has put private military contractors doing the work at higher risk.
The private security staff are paid by the Australian Government to protect Australia's embassy, which is shared with New Zealand and base to ambassador James Munro.
The Australian reported this week that up to 40 protection specialists of the 67 who had guarded the embassy were to be flown out of Iraq as a result of the dispute.
It came as the company hired to provide security began a new contract at a substantially lower rate than it had previously received for the same task. Unity Resources Group will be paid $51 million to provide protection for the embassy for the next five years after picking up $101 million for the work for the four previous years.
A Herald source familiar with private military contracting work in Iraq said URG staff in Afghanistan had their pay cut a few months ago from US$600 a day to US$340 a day ($876 to $496) and the same was believed to be happening in Iraq.