A leading art identity has been spared the sack from an international event being staged in Sydney for the first time. The reprieve comes on the condition his wages are handed over to artists owed tens of thousands of dollars.

Six artists are pursuing Iain Dawson, the ''VIP guest manager'' for the inaugural Sydney Contemporary art fair in September, after he took their art works on consignment, sold them at his gallery and then spent the proceeds.

Waiting: Mike Chavez says he will be glad to be paid for his work. Credit:Simon Schluter

Last week, Sydney Contemporary organisers held a crisis meeting to resolve the growing furore over Mr Dawson's employment.

The fledgling event is being promoted as the largest art show to be staged in Sydney, with up to 70 upmarket galleries arriving from 12 countries.