ALSTOM Transport – Collective Employment Agreement

Alstom Transport NZ Ltd is the succesful bidder for Tranz Rail's outsourced Motive Power Division. This division is responsible for the maintanence of all locomotives and the Operation of the Hutt Workshops.

February 20th 2002

ALSTOM Transport – Collective Employment Agreement

ALSTOM Transport New Zealand Limited and the Rail and Maritime Transport Union (RMTU) are pleased to announce that they have finalised terms of settlement for a new Collective Employment Agreement (CEA) intended to cover union members employed by ALSTOM Transport under the company’s outsourcing contract with Tranz Rail Limited.

The new CEA is due to come into force on 22 March 2002 in line with the commencement date of the outsourcing arrangements. Although yet to be ratified by union members, RMTU General Secretary Wayne Butson said that the Union endorsed the settlement and will be recommending the new CEA be ratified by members of the union who will be covered by it.

“The Union is happy to state that the provisionally-settled CEA has resulted in the ‘same or more favourable’ test being met in every material sense,” Mr Butson said after the conclusion of negotiations.

The deal includes a 3% pay increase effective from 22 March to be followed by a cost-of-living adjustment in March 2003 based on the movement in the Consumer Price Index. The new CEA will run for two years until 31 March 2004.

ALSTOM Managing Director Geoff Hunt said that new Collective Agreement is a positive result for all concerned and will form the basis of a constructive working relationship with the RMTU and its members.

“ALSTOM is committed to treating employees fairly and this CEA settlement reinforces that commitment. A two year deal will provide ALSTOM Transport with a stable basis for its employment relations,” Mr Hunt added.

Wayne Butson, General Secretary of the Rail & Maritime Transport Union said that whilst the Union had approached the out-sourcing with caution the negotiation process with ALSTOM had been very smooth as both parties had committed themselves to a jointly developed Good Faith Code for bargaining which is required by the Employment Relations Act and that this has provided an excellent platform for the negotiations to advance to a satisfactory conclusion.

“A two year collective agreement with good wage increases will provide a stable platform so as we can all get to understand one another better and develop good industrial relations,” said Mr Butson.

The agreement now has to be ratified by RMTU members once the final makeup of the workforce is identified following the exchange of the employment offer and acceptance letters between ALSTOM and former Tranz Rail employees.

It is intended that copies of the provisionally-settled Collective Agreement will be distributed in the near future to all affected union members so that the ratification procedure can be initiated. ENDS For further information contact: Brian Cronin, RMTU (04) 499 2066 or call ALSTOM Helpline: 0800 103 842.

Wayne Butson General Secretary Rail and Maritime Transport Union P.O. Box 1103 Wellington, NZ Ph: 0064 4 4736693 Fax: 0064 4 4710896

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