KiwiRail continues consultation about staff reductions

06 August 2012 9:09AM

Consultations with KiwiRail’s Infrastructure and Engineering (I&E) staff across the country about proposed staff reductions will continue this week,” says Chief Executive Jim Quinn.

“This week we will be informing staff about where the proposed reductions could be made by location and specific role.”

“We have looked closely at the existing 1,000 strong structure and where the highest need for these staff will be over the coming years in order to propose these changes.”

“While no final decisions have been made we are planning a reduction in our network spend over the next three years which has resulted in the need to reduce staff numbers by 181 nationally.”

“This is a response to current economic uncertainties and will allow the I&E business to further contribute to KiwiRail’s goal of becoming a sustainable business in the next ten years.”

“We still intend to spend $750 million on the network over this three year period. This is around $200 million less than we planned to spend prior to the full impacts of the current economic situation and events like the Christchurch Earthquake becoming apparent.”

“However, it is important to note that our revised planned spend is still around four times more than we spent in 2005, which means we are still making a significant investment. There will absolutely be no compromise on the safety of our operations.”

“A $750 million investment is significant, the staff changes are not about doing the same amount of work with less staff, we will simply be doing less work but in a more efficient and planned way.”

“To achieve the reduction in numbers required we are requesting expressions of interest in voluntary redundancy.”

“It is hoped that the required numbers will be achieved via this process and reports to date suggest some staff have already shown interest in this option.”

Over the coming weeks we will be collecting and considering this information with the aim of implementing a new structure in October.

Background

The proposed reductions are outlined below per region.

 

Current

Proposed

Reduction

Northern

214

164

50

Central

244

180

64

Southern

194

151

43

Track Machine Teams

64

40

24

TOTAL

716

535

181

 

ENDS

Media Contact: Candice Johanson, Senior Communications Advisor, 021 804 906 or 04 498 3383.