Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Air NZ - Privatisation By Stealth?

Air NZ - Privatisation By Stealth?

Air NZ is preparing to outsource more than half its Finance Department to take advantage of cheaper labour overseas, with Fiji as the most likely option.

New Zealand's national airline is also engaged in consultation with the Service and Food Workers Union Nga Ringa Tota (SFWU) and the Engineering, Printing and Manufacturing Union (EPMU) to find a "competitive in-house solution" to avoid tendering out all Air NZ ground-staff employees at the airports.

SFWU Northern Region Secretary Jill Ovens says the two processes follow hot on the heels of attempts to outsource the company's heavy engineering services - avoided only by unions agreeing to cuts in staff numbers and reductions in conditions.

She says the latest moves appear to be part of a general plan to divest itself of its employees and operations, possibly to make the 80% publicly owned Air NZ shares more attractive to private buyers.

"The airline is making a profit and recently announced that it is on target with its profit estimate for the 2006 financial year.

"There is no crisis in Air NZ. This is simply a drive for bigger profits for a minority of private shareholders in order that the company can convince the Government to relinquish the Kiwi share."

Air NZ plans to shed more than half its finance department (53% of the employees) over one year. The remaining employees would be training the staff of the outsource provider who will be based off-shore, most likely in Fiji where clerical workers are paid as little as $6000 a year. Other possibilities include India or the Philippines.

Once they are trained, the New Zealand workforce would be made redundant.

"It is stated in the collective employment agreement that the company has a preference for employing its own employees, but Air NZ management tell us that this must be balanced against strategic objectives to reduce costs."

Ms Ovens says the company has as one of its values "Uniquely Kiwi" and yet very soon, our national airline is going to consist of a few select corporate managers maintaining the Koru brand, and some directly-employed airline pilots.

"They seem to be modelling themselves on multi-national corporations where highly paid corporate managers simply manage third-party contracts in Third World countries, rather than employ their own employees," she says.

"If Air NZ follows through on its plans, the finance operation will be performed by staff off-shore, and ground staff wearing the Air NZ uniform will be employed by contractors."


The union is planning a public campaign, including picketing Air NZ CEO Rob Fyfe's offices, in opposition to outsourcing its members in Air NZ Finance.

"The NZ public is the majority shareholder of this airline. Rob Fyfe and his corporate heads are chipping away at our airline bit by bit. It doesn't belong to them to sell it off like this."

Ms Ovens says Air NZ recently showcased some new marketing, using the words: "Ko matou enei", meaning "It's who we are."

"If the majority of Air NZ employees are contracted out, or their work is outsourced to workers off-shore, how can the company honestly use this slogan?"

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election