Unions Cave in to Air New Zealand Demands
By Steve Creedy, The Australian | Apr. 03, 2007
Air New Zealand will continue to employ almost 1700 airport workers after a major union agreed to concessions that include a more flexible rostering system and revised pay scales.
In a process likely to be closely scrutinised by Qantas's management and unions, Air NZ said on April 2 that it would not outsource its airport services work after just under 78 per cent of its Engineering, Printing and Manufacturing Union members agreed to the settlement.
The airline hailed the decision as an opportunity to make its airport services division "globally competitive and world-class".
But EPMU officials said they were just making the best of a bad situation, and called for a parliamentary investigation into the airline's handling of the deal.
Air NZ had estimated that outsourcing the work would save NZ$100 million (AU$88 million) over five years.
The deal offers a NZ$1,000 lump sum to all employees who accept the settlement, pays an additional NZ$3,000 to those who are eligible for redundancy but choose to stay, and offers voluntary redundancy to an undisclosed number of workers. There is a 3.75 per cent pay rise over two years but pay scales and rostering will change.
EPMU secretary Andrew Little said the package would be financially good for some members but bad for others.
Air NZ domestic airline manager Bruce Parton said the flexibility and savings the company would achieve through the agreement were on par with the gains it would have made through outsourcing.
He said it would also provide a platform for delivering better services to customers.
"We will work with staff to transition from the old contract to the new contract, the selection and appointment of new frontline management roles, and the redundancy process for those choosing to exit the business," Mr Parton said.
Mr Parton said Air NZ had allowed staff numbers to drop during the airport services review.
As a result of this -- and the fact that a significant number of staff on higher incomes would choose to take redundancy -- it would shortly start a recruitment drive, he said.