Rotorua council’s Infracore workers strike for eight days in a bid for better pay

Infracore workers are set to strike for eight days in a bid for better pay. Photo / NZME

Seventy-five workers from Rotorua council-controlled organisation Infracore will stop work for eight days starting on Friday in a bid to end eight months of failed pay negotiations.

The union of the majority of the workers say it is the “lowest paying local council employer” for essential services.

The workers are in the parks, cemeteries and the provision of water services departments.

Amalgamated Workers Union (AWU) said their employer showed “no willingness” to move from a position that made Infracore workers “significantly the worst paid in their field across all local bodies in the Bay of Plenty/Waikato”.

Infracore’s boss Regan Fraser said discussions have been held in good faith but unions’ expectations surpass what can it afford amid “significant financial pressure”.

While workers are asking for a living wage - $26 an hour - Fraser said it could stretch resources to offer a 5 per cent increase.

AWU represents 59 of the striking Infracore workers, and First Union 16.

AWU Bay of Plenty organiser Toni Smith said workers voted to strike from 5am on Friday to 5am on Tuesday unless directed into mediation beforehand. A further four strike days were planned, the last ending on April 3 at 5am.

Striking was indicative of workers’ frustration, she said.

“It’s completely outrageous that we have staff members with 10-plus years’ experience earning $23.65 an hour.

“Trainees at other local councils are better paid, and every other local body in the region pays a living wage of a minimum of $26 an hour.”

Smith said discussions began in June last year and it had engaged openly and honestly.

“This isn’t greed, this strike will cost our members money, but they feel totally disrespected and undervalued and have tried everything else.”

Seventy-five of Rotorua Lakes Council's Infracore workers will strike for eight days in a bid for better pay. Photo / Laura Smith

Smith said workers contacted community groups to minimise disruption to the public. She said they would work with Infracore management to ensure the strike would impact daily maintenance services but not affect burials and critical services such as three waters.

Infracore chief executive Regan Fraser acknowledged that team members had the right to take industrial action, and said he knew that “times are tough for many people now”.

He said the organisation was “navigating significant financial pressure” with its current losses.

“This backdrop makes our commitment to our workforce’s wellbeing all the more important to us.

“We work hard on fostering a strong sense of unity and valuing each employee, efforts that have enabled us to stretch our resources to offer a 5 per cent increase.”

He said discussions with unions had been in good faith but had not led to an agreement.

“The unions’ expectations surpass what is sustainable for our organisation at the moment.”

Fraser said it was working with Rotorua Lakes Council to ensure the future sustainability of Infracore.

For the year ending in June, the council would give $13,279,000 to Infracore budget. Its total revenue was projected at $15,466,00, but after expenses estimated a before-tax loss of $39,000.

Staff costs made up $9,266,000 of the total $15,198,000 expenses.

“We remain dedicated to our team, and we are hopeful for a resolution that upholds the long-term health of both our employees and the organisation.”

Fraser said he would clarify with workers how burials and critical services would not be impacted as he understood all labour would be withdrawn.

Rotorua mayor Tania Tapsell said the Service Level Agreement the council had with Infracore was funded by rates and was a limited resource.

Rotorua mayor Tania Tapsell. Photo / Laura Smith

“Any funding increases have a significant burden on our community which we must always consider,” Tapsell said.

She said it was expected that council-controlled organisations (CCOs) independently manage, bid for contracts and deliver services in a sustainable way.

“It’s not always possible for [the council], as the parent body, to fill funding shortfalls.

“The council has its own limited budgets to operate within, where we’ve already allocated ratepayers money to deliver other services.”

Tapsell said it was in discussions with Infracore about a proposed new agreement to ensure services provided were delivered to the “expected standard within the allocated funding envelope”.

The council’s infrastructure and environment general manager Stavros Michael said it was taking steps and was hopeful the impact on key public services would be minimal.

He said the public would be advised of any significant impact.

Rotorua Lakes Council infrastructure and environment general manager Stavros Michael. Photo / Laura Smith

“The council will prioritise high-importance areas and facilities for the likes of water supplies, stormwater management, cleaning and open spaces mowing and will continue to monitor and reassess the situation and make adjustments as required.”

Corporate services general manager Thomas Colle said the SLA comprised of:

• A fixed amount to cover things like mowing, gardens, inspection of assets and drains etc, and to operate drinking water pumping and treatment plants;
• Payments made on an as-needed basis for responding to reactive work like fixing water leaks, fixing playgrounds and other assets, operating the crematorium and looking after cemeteries.

He said it was working with Infracore to identify and reduce financial risks and the new agreement would take a longer-term view for the services the CCO provided to the council.

* Correction: This article’s headline and second paragraph have been updated to clarify the statement made by the Amalgamated Workers Union that Infracore was the “lowest paying local council employer”. It has also been updated in the first paragraph to clarify Infracore is a council controlled organisation (CCO).

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist for four years.

LDR is local body journalism co-funded by RNZ and NZ On Air.