KiwiRail confirms new structure with staff

MEDIA STATEMENT
For immediate release

24 September, 2012

KiwiRail confirms new structure with staff

KiwiRail has today confirmed the future structure of its Infrastructure and Engineering business. The final decision follows KiwiRail’s June announcement that its resourcing levels would be reviewed and weeks of consultation with staff and other stakeholders across the country. As a result, the total number of staff reductions has been revised to 158 - 23 fewer than initially planned.

KiwiRail Infrastructure and Engineering General Manager, Rick van Barneveld, said that staff will be informed this week which roles are going to be disestablished.

“We’ve worked very closely with the union and staff to ensure all those affected have the information they need, and understand the process.

“We’re pleased that more than seventy have taken up our offer of voluntary redundancy. Unfortunately, despite our best efforts, some mandatory redundancies will be unavoidable. At this stage we don’t know the final number as every effort will be made to retain the skills and talents of our staff by finding other opportunities for them at KiwiRail.”

Mr van Barneveld said that the restructure of the Infrastructure and Engineering business was part of a wider programme to rebalance KiwiRail’s priorities in response to continuing economic uncertainty.

“Like most businesses, we haven’t been immune to the effects of a sluggish economy. Delivering this kind of news to our people is never easy. But it’s a necessary step for us to achieve the savings we need to make the improvements to the rail network that customers want.

“KiwiRail has a future as a business that can earn enough money to pay its own way - but it has to be different to what has failed before. We still intend to spend $750 million on the network over the next three years, which is around four times more than what was spent in 2004-5.

“Every business owner will tell you that getting through these tough times mean you need to re-evaluate your priorities of investment against your resources. That’s exactly what our business plan does and we have the balance about right,” he said.

From early October, KiwiRail will begin working with affected staff who’s roles have been disestablished with a view to securing redeployment elsewhere in the business. It is anticipated that recruitment into the new structure will be completed by the end of October.

Background

The confirmed Infrastructure and Engineering staffing levels by region are detailed below.

Region Current Establishment Future establishmentTotal reductions
Northern 213 171 42
Central 244 186 58
Southern 193 153 40
Track Machine Team & Railweld 64 46 18
Total 714 556 158

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