"It's a very hard position for the staff to be in because they have to make a choice between the circumstances that the company's describing: That it needs to make these cuts in order to provide better teacher-children ratios and providing additional professional development and administration assistance on the one hand, versus the obvious detriment that any individual is going to face in either not getting an expected increase or getting wages cut.
"That's a very difficult one, and one that obviously we don't like, predictably, people being put in this position. And obviously it's raised levels of concern within the organisation."
Mr Gaulter says he believes a number of staff will not accept having their pay cut by five per cent.
He says Kidicorp staff had until today to notify management of how they were going to deal with the options.
"Obviously I don't know what that result is and I suspect those things are still coming in."
The ABC centres were bought by Tauranga-based Kidicorp in September last year, following the demise of ABC's parent company in 2008.
Kidicorp managing director and owner Wayne Wright was unavailable for comment today.