Workers fight $20,000 job plan

Chorus announced the signing of new 10-year contracts with three Australian companies. Photo / Kenny Rodger

Telecom seems likely to face strike action by hundreds of contracted network technicians worried that they will have to pay $20,000 each to stay employed.

Telecom's network division, Chorus, said at the end of last month that it had signed new 10-year contracts worth $3 billion with three Australian companies.

Two are existing contractors Transfield Services and Downer EDI.

But a new company, Visionstream, which is taking over the Auckland and Northland services, is worrying workers because of the way it operates.

About 900 workers have been told they no longer have jobs with Transfield and Downer, but those who want to sign up with Visionstream will have to switch from working for the company as employees to being owner/operators.

One contractor, who spoke on condition of anonymity, said the change would be difficult for many to make.

"A lot of guys are feeling very hard done by. All your life you are an employee and now you have to start your own business just to keep your job. It's going to put a lot of experienced guys in a very difficult position."

The workers would have to buy a van and expensive tools.

The device used to find faults could cost up to $8000, and even basic tools could be $1000 each.

As well, the change would make it difficult for apprentices to get into the industry as they were unlikely to have the money to set up on their own and contractors would not want to hire people without experience.

The contractor questioned whether migrant workers - about 400 of the 900 - would be able to become owner/operators under their visas.

"I think they will be struggling to get the numbers," he said. "We have guys that are experienced but this is going to shut them out."

This would result in service levels going down as there would be fewer operators to fix faults, and if operators were paid by the job, they would rush their work to keep their income up.

Joe Gallagher, telecommunications advocate for the Engineering, Printing and Manufacturing Union, which held a protest on Friday, would not rule out further action to get its concerns heard.

He said it could cost workers between $20,000 and $30,000 to set themselves up in business and predicted the changes could cause disruptions.

"This is just another way to extract profits," Mr Gallagher said.

But Chorus spokesman Robin Kelly said the changes were not a cost-cutting exercise.

"We are spending the same amount of money tomorrow as we spent yesterday."

The technicians would be given support in making the change, and Visionstream had already held initial meetings. It would start the next stage of meetings tomorrow.

Mr Kelly said Chorus was short-staffed, and "we need these people and their skills".

Chorus was still working with Immigration NZ on how migrant workers it had brought in from the Philippines two years ago would transfer to the new company.

Visionstream New Zealand general manager Andrew Stevens promised there would be no "substantial" upfront costs to workers associated with tools or vehicles.

The company had no intention of getting people into debt and workers could establish their businesses on a lease basis.

It could also give cash grants to help with the cost of setting up a company.