Susan Wood pay row led to Fraser's exit from TVNZ

Susan Wood

Close Up presenter Susan Wood is locked in a serious pay dispute with TVNZ that is believed to have triggered the resignation of chief executive Ian Fraser.

It is understood that during recent contract negotiations Wood was offered a salary that would have meant a substantial pay cut.

The dispute is believed to be going to arbitration tomorrow and high-profile lawyer Mai Chen has been engaged to represent Wood. Ms Chen refused to comment last night.

Wood, who was named presenter of the year at the annual Qantas Media Awards in May, said her contract prevented her commenting.

Herald columnist Fran O'Sullivan was told yesterday that the TVNZ board learned of Wood's arbitration at its annual strategic meeting in Auckland last Thursday and Friday.

It is understood the board was concerned that negotiations with presenter Simon Dallow would also go astray, especially after the axing of Judy Bailey and news executive producer Melanie Jones.

The board suggested Mr Fraser become directly involved in the key negotiations and at that point the chief executive is understood to have said he would resign.

He officially quit at the weekend, saying his position had become untenable because the board was attempting to interfere in the day-to-day management of TVNZ, rather than sticking to its brief.

On Monday, Mr Fraser issued a clarification saying he was not suggesting any political interference in the editorial content of TVNZ news and current affairs.

One source said: "This is a saga of errors all kicked off by bad management."

Broadcasting Minister Steve Maharey broke his silence on the issue yesterday after receiving a report from the board on the circumstances of Mr Fraser's departure.

"It is unequivocally clear that there was no breach of the editorial independence protocol ... nor was there any inappropriate interference in the day-to-day operations of the company," said Mr Maharey.

He denied a $300,000 payment to Mr Fraser for working out his six months' notice was a golden handshake, but indicated the Government's annoyance at the deal.

"They have agreed that what he will do is work out his contract through a range of assignments around the organisation," said Mr Maharey. He said it was not an ideal situation and the Government did not like it. He did not know what Mr Fraser would do.

National's broadcasting spokeswoman, Georgina te Heuheu, said there was no denying the payment for "odd jobs" was a golden handshake.

"Mr Fraser was appointed at a time when the Government was very conscious about golden handshakes. Given that, why was he still offered a contract with a six-month notice period should he resign?"

She asked if the payout would make him eligible for TVNZ's lucrative superannuation scheme.

It has been reported that he will be eligible for a $120,000 superannuation payout on top of his salary. After four years TVNZ matches employees' contributions.

Mrs te Heuheu said if there was a payment on top of the salary the Government should "come clean now".

Mr Maharey said he did not know Mr Fraser's superannuation eligibility, which was an employment matter.

National has called for an inquiry into the issue, but Mr Maharey said it was not needed.

"Both protagonists ... in this dispute have agreed there has been no political interference. The dispute is one of a disagreement over how to handle a management issue to do with higher salaries."

Prime Minister Helen Clark said she did not have any information on Mr Fraser's exit deal with TVNZ. She retained confidence in the board.

Spokeswoman Avon Adams said last night that TVNZ had "absolutely no comment" on Wood's arbitration. Mr Fraser could not be reached.