Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Sitel redundancies show perils of Private Equity

Sitel redundancies show perils of Private Equity - EPMU

One hundred and ten workers at call centre company Sitel’s Palmerston North site have been told today that they’re out of a job because their Yellow Pages work has been contracted to Teletech and will be outsourced to the Philippines.

The cost-cutting move comes after the Yellow Pages group was bought by a private equity consortium for $2 billion in March this year and follows a similar decision by Telecom to send Sitel contracts to the Philippines last year.

EPMU national secretary Andrew Little says the move shows the danger private equity poses to Kiwi jobs.

“The reality is that private equity owners of businesses have no loyalty to the communities their businesses operate in, and Sitel’s new owners have shown what that means.

“There’s no way this is about better service for New Zealand customers or about the long-term growth of the business because English is a distant third language for the people who will be fielding these calls and earlier outsourcing to the same country has shown this.

“This is a classic ‘strip and flip’ exercise.

“They’re looking to strip out as many costs as possible in order to flip it on for a short-term profit and that’s no good for the business and it’s certainly no good for the hundred and ten workers who’re being sent down the line.

“All the union can do now is try to ensure these workers are looked after in terms of negotiating redundancy benefits and finding them jobs.

“Between this and the Feltex debacle we’ve got a pretty good picture that workers working for businesses owned by private equity companies are at risk.”

Sitel workers have four months of work left and then the possibility of a further six months with Teletech before their work is shifted overseas. Sitel has consistently refused to negotiate a redundancy package for its workers.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>