EPMU Media release

14 January 2007

Crunch time for Air NZ ground service jobs

Crucial talks over the future of Air New Zealand passenger and groundhandling services and the 1700 jobs they involve will start tomorrow in Auckland

The talks between the Engineering, Printing and Manufacturing Union and the airline represent the last opportunity to stop the outsourcing of the services.

EPMU National Secretary Andrew Little says there is a lot at stake in the talks this week.

“This is about the future quality of this important frontline work and about the future quality of working life for many of these employees.

"In the interests of good faith we have kept our analysis of the merits of the airline's proposal between ourselves and the airline, but it is fair to say we have very real doubts about whether the claimed savings are at all possible, and the case for contracting out is far from convincing,

"Nevertheless, if there are aspects of the operation that can be improved without harming our members then we are open to discussing those improvements and we will seek to do so this week."

In February last year unions, including the EPMU, persuaded the airline to abandon a proposal to contract out wide-bodied aircraft heavy maintenance, saving approximately 400 out of 700 jobs as a result. Recently, the airline advertised for aircraft engineering positions saying they no longer had enough engineering personnel to do the work available.

"Obviously, we want to prevent the same sort of short-sighted decision-making we saw last year.” Little says.

The union has engaged Bevan Wallace, a business analyst from chartered accountancy firm Ireland Wallace, to evaluate the airline's original proposal. Mr Wallace's analysis will be formally presented to the airline this week.

ENDS

Background:
In October last year (2006) Air New Zealand announced a proposal to contract out its airport services business at Auckland, Wellington and Christchurch to an overseas joint venture involving Spanish-owned Swissport and Australian-owned Transfield Services. Air New Zealand said it could save $20 million a year by making the move and planned to make a decision by Christmas.

After the October announcement the airline and the union commenced a consultative process under the staff collective agreement which was to run for 58 days. In November the union filed legal action in the Employment Court claiming the airline had failed to disclose relevant information and that the contracting out proposal was designed to compel the union to negotiate wages and conditions without the right to take industrial action.

In December Air New Zealand agreed to postpone any decision until 8 February 2007 when the legal action is due to be heard in the Employment Court in Auckland.

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