Stagecoach Hits Back at Misinfo About Its Profit
Stagecoach Hits Back at Misinformation About Its Profit
In the midst of strike action by Auckland drivers and the Stagecoach Auckland Combined Unions’ rejection of at 14.8% wage increase, Stagecoach New Zealand Executive Chairman, Ross Martin, has responded to misinformation about the company’s financial position and mischievous allegations about the company’s profitability.
“The reality is that Stagecoach’s most recent offer of a 14.8% increase over three years, including 7.6% in the first year, is an offer that stretches the company to its utmost limit. Contrary to misguided allegations and media speculation, Stagecoach New Zealand runs a very tight ship” says Martin.
The reality of Stagecoach New Zealand’s profitability is as follows:
Stagecoach New Zealand has never paid a dividend overseas to the Stagecoach Group. All profits have been ploughed back into the New Zealand company.
Stagecoach has actually invested $200m into the Auckland business during the last six years with an average return of a very modest 3% - all of which has subsequently been reinvested in the company.
Any profits made by the Stagecoach Group, based out of the UK, are a red herring. These figures are collective profits made by Stagecoach operations across several countries, but primarily the UK. The Stagecoach New Zealand operation is tiny relative to the UK operation.
“Stagecoach New Zealand has been operating for almost fifteen years. We buy New Zealand buses, employ New Zealand drivers and have never once paid a dividend back to the Stagecoach Group. We have demonstrated an unquestionable long term commitment to New Zealand.
“We believe the offer we have put to the Unions is a good and fair one. A 7.6% increase this year is well above the 5% being called for by the country’s largest Union, the EPMU - and 14.8% over three years will keep Stagecoach wage increases well ahead of average wage growth and GDP growth.
“We have now
made four offers or proposals to the Combined Unions to
reach a settlement, avert industrial action and avoid major
disruptions to public transport. 14.8% is a damn good offer.
Unfortunately, it seems the Unions are hell bent on a
strike, which is extremely disappointing” says Martin. (end)