Airline says yes to plan to save jobs

Air New Zealand has accepted a union plan aimed at preventing hundreds of redundancies among engineering staff.

More than 500 workers have been awaiting their fate as their unions and airline management tried to find a way to avoid or reduce job losses at Air NZ Engineering Services.

The airline originally planned to send both aero engine and wide-body heavy maintenance to overseas companies, axing 617 jobs, mostly in Auckland.

Last month Air NZ confirmed the aero engine work would definitely go overseas this year, cutting 110 jobs and saving the airline $52 million over five years.

Yesterday's counter-proposal could see the wide-body heavy maintenance work remain in-house, through a combination of job losses and labour reform.

The breakthrough follows three weeks of intense talks between management and union representatives.


Green Party industrial relations spokesperson said: "I believe the unions and workers have compromised hugely to come up with this deal and I only hope Air New Zealand management, in its acceptance of this proposal, does not see it as an opportunity to force workers into unreasonable cuts in wages and conditions."


Last month the Engineering, Printing and Manufacturing Union (EPMU) and the Aviation and Marine Engineers Association indicated it might be able to save about 300 jobs.

But in a statement yesterday, the airline said the unions' initial proposal did not deliver the required remaining savings of $48 million over five years.

Over the weekend, the unions came back with an offer that would deliver the savings, to save the wide-body maintenance work.

The proposal hinges on whether the Christchurch workforce, which services the airline's narrow-body fleet, will veto the proposal.

Union representatives will take the proposal to members at meetings in Auckland and Christchurch for a vote on February 9 and 10.

The ballot results are due out on February 13.

EPMU national secretary Andrew Little said the number of redundancies proposed in the plan would not be made public until after union members had been informed.

He said the talks had been intensive, breaking only for the Christmas holidays.

Mr Little said the airline had also worked hard to save jobs.

"I think they have, in the last few weeks, been keen to make the union proposal work. I think they have seen value in doing what can be done to keep the work here in New Zealand."

Mr Little said he did not want to pre-empt the workers' reaction to the plan, given that it involved job cuts.

"Our members have been aware of what the issues are ... and I think they have to be given the time and space to consider the detail and make up their own minds before they vote on it."

- NZPA