Napier City Council's staff association is up in arms over a $29,000 pay rise given to their chief executive, who they say has reduced the organisation's morale to "an all-time low".

Meanwhile, the council has offered the association's 124 members and 40 affiliated members an increase of 1.7 per cent in negotiations for a new collective agreement.

Members said they were stunned when it was revealed last week that Wayne Jack had received a $29,000 rise in the year to June, bringing his total package to $318,730.

MARTY SHARPE/FAIRFAX NZ Napier City Council is not a happy place for many at the moment, according to a group representing staff.

Jack has rejected the association's claim that morale is at an all-time low, and has said his pay was deemed by an independent party to be below what others in similar roles are paid.

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The association said on Thursday: "During negotiations with [Jack], the Staff Association has requested for members to be paid what they are worth. Mr Jack has argued that the pay rise is based upon ratepayer affordability. Yet based on Mr Jack's salary increase, he does not appear to be constrained by the same consideration."

The group also said a controversial "realignment" announced earlier this year aimed at increasing administrative efficiency had led to the redundancy or resignation of experienced staff.

"Key managers, including those of wastewater, stormwater, drinking water, roads and design have left council, and the implications of the loss of so many experienced staff is alarming.

"This has caused a sharp increase in consultancy fees, which is likely to continue for several years as new staff are appointed and get up to speed."

There had been an "unprecedented number of personal grievances brought against the council by the association and individuals" and the cost to council in legal fees and consultant's fees in recent months "was likely to be in the realm of hundreds of thousands".

Jack took up the chief executive role in September 2013.

"GOOD FAITH" BARGAINING

The council's annual reports reveal there were 10 severance payments between July 2013 and July 2016, with $98,500 paid out. This compared with just four payments and payouts totalling $24,211 between July 2005 and June 2013.

Jack said he was very disappointed to see the association had disclosed details "of an otherwise private and confidential statutory bargaining process, which must be engaged in in good faith".

He was extremely grateful for his pay rise and for the support provided by the council, and noted that his salary was below the market median for chief executives in similar-sized organisations.

"The realignment process has been conducted in full consultation with unions and staff and generally has been well received and positive," he said.

He rejected the claim that staff morale was at an all-time low and said it was natural that job losses meant some staff would feel aggrieved.

Changes had been made in the best interests of ratepayers, and there were a large number of employees who have "new and exciting goals to aspire to, are enthusiastic about our overall direction and council's renewed commitment to serving our customers better".

Filling roles had meant there was more reliance on the council's legal team and contract staff, but this was normal practice. The costs had not be substantial and the association's comments "are very inaccurate", he said.