Susan Wood set to leave TVNZ role

Susan Wood

TVNZ is expected to lose Close Up @ 7 star Susan Wood following the controversy over moves to slash her $450,000-a-year salary.

Staff say the case has placed Wood in an impossible situation after she was forced to take TVNZ to the Employment Relations Authority over being told she must take a 22 per cent pay cut.

TVNZ wanted Wood to accept $350,000 - down from $450,000 - doing the same job for which she recently received high praise from her employers.

Wood would not comment, citing her TVNZ contract which bans her from speaking publicly, but a senior TVNZ figure, who would not be named, said it was unlikely she would be able to continue in the role after challenging her employer in a public pay spat. Wood's contract expires on December 31.

Wood told last week's public hearing in Auckland she was considering quitting television before she was offered the job presenting Close Up @ 7 a year ago.

The Herald On Sunday has learned details of affidavits held by the Employment Relations Authority in which Human Relations manager Sidney Smith was quizzed by mediator Leon Robinson. The affidavits were not made public.

Ms Smith was questioned over differences in her affidavit against statements by Wood's lawyer Mai Chen and a senior associate, Lecretia Seales.

In her affidavit, Ms Smith said she had not been warned by Ms Chen that TVNZ's cut to Wood's salary was unlawful. Ms Seales was also privy to the conversation and was taking notes, which backed up Ms Chen's version of events.

The Herald On Sunday has learned the desire to push the case into the public arena was made by TVNZ's board, in a bid to prove to government it would not stand for big salaries. The board was criticised by Prime Minister Helen Clark after agreeing to pay One News anchor Judy Bailey $800,000.

Board chairman Craig Boyce said the constant attention on TVNZ had been "wearing" and he backed staff and management. He also spoke in support of news and current affairs boss Bill Ralston, who is understood to have the support of the board. "Bill Ralston has got a big challenge. Changing something that has been successful and is no longer successful is a big challenge to anybody. It's like a business that needs to go through a period of change - and that requires a lot of courage."

Mr Boyce said he found it "extraordinary" the company suffered poor publicity when "so many good things had happened".

"In the first quarter ending September, twice as many New Zealanders watched TV One News as TV3 News. Those statistics never reach the light of day. The focus is on anything which can be shown to be TVNZ in a bad light."

Mr Boyce had kind words for departing chief executive Ian Fraser, who resigned a week ago. "Ian Fraser is an intellectual power. He provided the means by which the company could get a vision and chart its way through to being a public broadcaster. I'm not sure I've met others who could do that."

It has emerged that Ralston, who has overseen the departure of several high-profile television personalities, told colleagues he has an "cast iron" clause in his contract which protects him from being sacked.

TVNZ sources said that Mr Ralston had a lawyer carry out special negotiations with the board for agreement which offered him a $500,000 payout plus three months' pay if he left in the first three years. Two staff members said Mr Ralston told them: "If they try to get rid of me, I'm set for life."

Mr Ralston refused to comment. A TVNZ spokeswoman said Mr Ralston had no special protective clause.

- HERALD ON SUNDAY