KiwiRail reveals job loss plans

JENNY KEOWN
Last updated 09:19 24/09/2012

Relevant offers

Industries

E-commerce opens door for ethnic communities: Alibaba Sky-Vodafone merger canned but businesses will keep working together Chart of the day: How big is Southland's economy per person? Support grows for drone register as CAA undertakes consultations A Team New Zealand win could put a $500m wind in our economic sails Taking the guesswork out of efficient farming Huge overhaul of ACC put on amber alert Westpac customers left unable to use eftpos or credit cards thanks to blip TVNZ acknowledges Netflix's influence on market with online revamp Reading cinema gets $27.5 million for earthquake damage to Courtenay Central

KiwiRail has confirmed it will cut 158 infrastructure and engineering jobs by the end of October and outlined which regions will be affected.

The company's infrastructure and engineering general manager Rick van Barneveld said staff will be told this week which roles were going to be disestablished.

The company divides its operations in to three regions: southern (all of the South Island), central (Wellington to Tongariro National Park) and northern (Tongariro National Park to north of Whangarei).

Of the 158 redundancies, 42 will be the nothern region, 58 in the central area, 40 in the southern region and 18 will be from the track machine team and railweld which operates around the country.

In all, KiwiRail is reducing its 714-strong infrastructure and engineering work force to 556.

"We've worked very closely with the union and staff to ensure all those affected have the information they need, and understand the process," van Barneveld said.

He said more than 70 workers had taken voluntary redundancy but added mandatory redundancies were unavoidable - although the exact number was not yet known as attempts would be made to redeploy workers.

KiwiRail would begin working with affected staff from early October, and recruitment in to the new structure will be complete by the end of October.

The state-owned enterprise is looking to shave $200 million from its books over the next three years and there is talk of a second round of job cuts in March.

Critics say the cuts are part of the Government's plans to privatise the company.

But Van Barneveld said 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".

KiwiRail employs 4100 staff nationwide.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content