Downer Cuts Show The Model Is Broken

A proposal by Downer Group New Zealand to reduce their power workforce by 12% should set off alarm bells for people concerned about our infrastructure.

The company, which is a major contractor responsible for implementing and maintaining energy infrastructure, is holding meetings with their workforce across the country this week to present their new proposal, which they say is in response to shareholder and investor pressure in the face of uncertain foreseeable work.

A Downer worker, who wishes to remain anonymous for fear of retribution from the company, says the decision is short-sighted and presents real risk to our infrastructure networks.

“We struggle to fill our stand-by rosters now as it is, which has huge implications for the standard of service we can provide,” they say.

“A smaller workforce means people waiting longer when their power goes off. It means taking longer to get to a power pole after a car accident – people could die before we get there to turn off the power.

“If there’s a serious storm, it’s all hands on deck. A smaller workforce at Downer means they’ll have to get in other contractors in that situation, who might charge double for the work. It doesn’t make sense.”

The worker says he’s worried about what these redundancies will mean for workers and their families.

“There are generations of people working in these jobs. Some depos might have an older worker, their kid, and their grandkid at the same place. Job losses on this scale will really hurt families.

“There’s usually work going somewhere, but you might have to up sticks and move somewhere you don’t know anyone. You might get worse pay and conditions. Some guys might bugger off to Australia.”

E tū Negotiation Specialist Joe Gallagher says the proposal shows the model for providing and maintaining this essential infrastructure is broken.

“More and more, we’re seeing the dangerous effects of the competitive contracting model in the delivery of services,” Joe says.

“This is a well-established workforce with a long history of looking after New Zealand’s electricity networks. Having a series of smaller contractors undercutting Downer to win the contracts results in a scattered, less cohesive approach to the delivery and maintenance of the infrastructure.

“The asset owners need to understand what it really takes to keep the lights on, and we’re worried that they are letting some immediate cost-cutting present a real risk not just to the livelihoods of the Downer workforce, but to the very core of New Zealand’s infrastructure.”

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