KIWIRAIL will begin offering redundancies to all staff from Monday [21 October] in what chief executive Peter Reidy says is part of a “transformation plan” for the government-owned company.
But unions warn the move risks de-skilling the company and is “putting the cart before the horse” as the scope of the restructure doesn’t appear to have been finalised. The announcement to employees yesterday followed leaked plans to dispense with up to 50 seagoing staff.
In a statement Mr Reidy said redeployment would be considered, where possible.
“The freight and passenger services we run by rail and Interislander must stand on their own feet financially, in line with our shareholder’s expectations,” he said.
“Losing people is always a tough decision to make, but today we are offering voluntary redundancy across the company. KiwiRail will have sole discretion over whether applications for voluntary redundancy are accepted.”
“This is not an easy decision, but the time is right for us to do things differently,” he said.
“Our transformation plan will simplify our operating model and deliver what our customers are asking for – improved reliability, better customer service and greater competitiveness.”
RNZ reported that KiwiRail Chief People and Communications Officer Andrew Norton told staff in an email that the move was designed to “reshape the business, lower our costs and create a solid footing for future growth”.
Rail and Maritime Transport Union acting general secretary Karen Fletcher told Stuff said KiwiRail needed to “work out where the surplus jobs are and identify and do a bit more of a needs assessment.
“By putting out a request for redundancies they are going to get expressions of interest from people doing jobs KiwiRail needs,” Ms Fletcher said.
The Labour Opposition’s state-owned enterprises spokesperson Arena Williams said KiwiRail employed 4,500 people and has staff in more than 50 towns and cities across the country.
“These are skilled workers who contribute a lot to the New Zealand economy and make sure freight and passengers move around safely,” she said.
“I am especially concerned about the timing of this. There is already huge uncertainty around the future of the essential rail connection across the Cook Strait, following Nicola Willis’ decision to cancel the rail-enabled ferries.
“Cutting maintenance and engineering jobs, when you have no plan for new ferries and are relying on the old ones, is adding fuel to the fire and will only mean ferries that break down more often and put passenger and crew safety at risk.
“Freight companies are worried too. They are unsure if their journeys will go ahead, and there is growing concern about stock arriving on time, safely.
“A year on, there is still no plan from the government to replace the ageing ferries and even less certainty for staff and the public,” Ms Williams said.
