South African rugby industry stakeholders have confirmed pay cuts and other economies to slice up to R1.2bn from the sport’s budget by the end of the year.
The plan was collectively designed and concluded by organisations representing SA Rugby, provincial unions, players and rugby industry employees.
The economies will be achieved by reduced expenditure following the cancellation of competitions (49.7% of savings), cuts in other operational budgets (37.3%) and in salary reductions (13%).
The plan was formulated and agreed by bodies representing SA Rugby, MyPlayers (the players’ representative organisation), Sport Employees’ Unite (employees’ trade union), and the South African Rugby Employers’ Organisation (SAREO – representing the provincial unions).
The salary cuts amount to 25% of total remuneration across the industry, including all employees, players and officials, although those earning below R20 000 per month have been exempted from any cuts. Higher earners have agreed to cuts on a sliding scale of up to 43%.
“It was a complex process to find alignment with a number of entities representing 1 396 people in the South African rugby industry, but throughout everyone collaborated fully,” said Jurie Roux, SA Rugby CEO.
The Industry Savings Plan came into effect on 1 May and is scheduled to run until the end of December in the first instance.