A union says technicians, line mechanics, faultmen and cable jointers’ jobs could be cut. Photo / Bloomberg
A union says technicians, line mechanics, faultmen and cable jointers’ jobs could be cut. Photo / Bloomberg
A union says Downer Group’s plans to cut jobs from its power workforce could be disastrous for people caught up in storms or car crashes.
Joe Gallagher of E tū union said jobs for some technicians, line mechanics, faultmen and cable jointers could be at risk as Downer proposed cutting33 roles.
A spokeswoman for Downer, New Zealand’s biggest listed infrastructure business, said the proposal would potentially affect 0.32% of its workforce. The company employed 10,000 people. She was unable to comment further.
Downer New Zealand’s net profit fell 50% to $18.7 million in its 2023 financial year.
Gallagher said union members and the company were due to start a two-week consultation process from today.
“Essentially they’re meeting at all of the depots in New Plymouth, Hāwera, Whanganui, Taihape, Raetihi, Palmerston North, Pahīatua, Tauranga and Paeroa.”
E tū said the engineering and construction services provider’s proposals were concerning for New Zealand’s infrastructure.
Asked what reasons Downer gave for proposed layoffs, Gallagher said: “Their message is they’ve got to provide a return to their shareholders and directors.”
He said Downer’s work in this area was split into maintenance work and capital work and the company had cited a dearth of capital work.
“There’s not an even cashflow.”
He said the maintenance model was flawed, as Powerco owned local lines and a series of smaller contractors “undercut” Downer to win the contracts.
He said this caused a scattered approach to infrastructure maintenance and delivery.
“There’s got to be a better way between the asset owner and the contractor,” Gallagher said.
An industry source said electricity distribution businesses (EDBs) expected some big growth in years ahead so the cuts seemed surprising, if they were advanced for the reasons E tū cited.
“EDBs have signalled to the Commerce Commission a major uptick in investment in the network. The idea that there’s not enough work for service providers doesn’t make a lot of sense to me.”
The Commerce Commission on May 29 said lines companies were facing higher costs, including the cost of borrowing, cost of materials and inflationary pressures.
Labour’s energy spokeswoman Megan Woods said it was crucial for New Zealand to keep workers with the skills to meet increasing demands for electricity, and the sector needed more certainty.
Technicians, line mechanics, and others might go overseas if New Zealand could not provide more consistent work or coherent electricity sector policies, Woods warned.
“What we know is globally, over the next 10, 20, 30 years, the people with these very skills... are going to be in huge demand.”
Megan Woods says it's crucial the electricity workers stay in New Zealand to help the country's current and future needs. Photo / NZME
Woods said the Government needed a cohesive approach to meeting decarbonisation goals and readying the country for times of much greater electricity demand.
“These are precious workers over the coming decades,” she told the Herald. “It is critical we retain these workers in New Zealand.”
She said a discussion over the maintenance system would be welcomed if it helped give power maintenance operators and workers more certainty.
Meanwhile, E tū said a lack of maintenance, or delays, could be disastrous.
“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,” E tū cited a worker as saying.
The union said that worker described struggles to fill stand-by rosters already.
“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 union added.
Downer operates as an engineering and construction services provider, and the construction sector broadly speaking has been under pressure in recent months.
Downer owns Hawkins, which is moving from its Stanley St premises in central Auckland after nearly 10 years and is looking to bring more offices together under one roof.
John Weekes, online business editor, has covered employment relations, crime, politics, breaking news and consumer affairs.
