Mediation Confirms Final Offer - NZ Bus

Press Release – Wednesday 10 October, 2012

Mediation Confirms Final Offer

NZ Bus has been involved in negotiations with Tramways and First Union since May this year to agree a new Collective Agreement.

At Mediation today the Company confirmed its final offer. It has now reached agreement with the unions twice on what terms of the new collective should be. Both those agreements have been accepted by the unions and recommended by them to the members. The CTU have also been involved and Helen Kelly has recommended acceptance.

The latest recommendation for a settlement was accepted by about half the unions’ members in a ballot last week. Unfortunately, because the unions require a 60% vote the deal was not ratified.

The unions and the company returned to mediation today to discuss how to get past the problem that the on two occasions now deals which have been struck at the table, and recommended and endorsed by the unions, have not been supported by enough of their members. There comes a point where we cannot continue to increase the offer because we become uncompetitive.

It appears that some drivers will simply not accept that a fair or final deal has been struck until they have tested the company by taking industrial action. This is frustrating for both the company and the unions .

At mediation today the company again re-affirmed that it has made its best offer. Unfortunately, it appears that industrial action may now follow.

NZ Bus appreciates the work that the unions, and the CTU have been doing. They have achieved a position for their members where they will be the highest paid in bus drivers in Auckland. The company has already said that if there is any other collective agreement offered by a major operator in Auckland, then the company would consider it instead. In fact, the company and the unions know that this is the best deal available for drivers.

“Unfortunately there is an element within the unions that sees strike action as a key element in any negotiation. They seem hell bent on following that formula again this time around, which is a real shame because it’s our customers that pay the price” says Shane McMahon, COO NZ Bus

“It is time for the members to support their unions and bring these negotiations to a conclusion without inconveniencing the public or the half of the union membership that voted to accept the deal” concluded Mr. McMahon.

Key Facts:

Average Annual Income for bus drivers = $46,000

Average hours worked per driver = 43 per week

Drivers are paid overtime rates for hours worked above 40 hours per week

Almost all drivers employed in full time roles, and over half (525) work straight shifts Under the agreement reached between company and unions drivers pay rate would rise to $20 per hour plus allowances – making them the highest paid drivers in Auckland In addition to hourly rate, drivers also get allowances for broken shifts, meals and certain additional duties Total wage bill for drivers per annum = $46million

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