Sick telco industry needs govt intervention - EPMU

August 18, 2009
Media Release

Sick telco industry needs govt intervention - EPMU

This morning’s announcement of 125 redundancies by major Telecom contractor, Transfield, just weeks after they secured a ten year contract shows Telecom’s failure to properly fund the network, says the Engineering, Printing and Manufacturing Union.

The union is calling for the government to step in now before it is too late for the skilled workforce and for New Zealand’s vital telecommunications infrastructure.

The EPMU will be fighting the redundancies but says the entire industry is being starved of cash as Telecom moves to squeeze profit from its operations – a situation that can be seen in the current attempts by another Telecom contractor, Visionstream, to force workers into dire contracting arrangements.

EPMU national secretary Andrew Little says the redundancies show Telecom’s disregard for the future of the network and the need for government intervention.

“This restructuring is the result of Telecom’s ongoing tactic of playing contractors off against each other to drive prices down. It’s a model that’s hurting our members and endangering the long-term security of New Zealand’s broadband.

“Telecom have shown they cannot be trusted with the responsibility to maintain our vital communications infrastructure. This industry is sick, and that means it’s time for the government to step in and make sure we get the sustainable network we need to take our economy into the twenty-first century.”

The EPMU represents 45,000 working New Zealanders including 1500 telecommunications workers.

This morning Transfield announced that it will be making 125 field managers, designers and field staff redundant as part of its response to “remain competitive to match changing market conditions and win new business”.

ENDS

© Scoop Media