Seventy-five workers at Rotorua’s council-controlled organisation (CCO) InfraCore would have normally been tending to the city’s garden beds and graves today.
Instead, they waved signs as they began their strike-action protest, calling for a living wage.
It followed eight months of failed negotiations between the workers’ unions and its employer. While InfraCore offered a 5 per cent increase to workers, their unions say that is not enough to close the gap between other similar Bay of Plenty organisations.
Amalgamated Workers Union represent 59 of the striking InfracCore workers. Bay of Plenty organiser Toni Smith spoke to Local Democracy Reporting(LDR), as she said workers were contractually blocked from speaking to the media.
This was later clarified by InfraCore’s interim chief executive Regan Fraser, who said there was no blanket clause.
However, its employee handbook states that workers can not make derogatory and/or inflammatory comments about InfraCore, employees, clients or suppliers via social media networking sites or any form of print or broadcast media.
Smith said the gap between InfraCore and other CCOs was 9.93 per cent. She said all others were paid the living wage - $26 an hour - which was why it viewed the offered increase as insufficient.
Toni Smith - Amalgamated Workers Union New Zealand Bay of Plenty organiser. Photo / Andrew Warner
She previously said there were staff members with 10 years’ plus experience on $23.65 an hour.
The minimum wage is set to increase from $22.70 to $23.15 per hour in April.
Smith said the workers were passionate about their mahi.
“Every council has the same problems, the same issues, but all of these councils [CCOs] are paying $26 . . . toilet cleaners, cleaners, everything.”
The workers were in the parks, cemeteries and the provision of water services departments.
Smith previously 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 burials and critical services such as water services.
Infracore workers on the first day of strike action. Photo / Andrew Warner
First Union represented 16 workers. Organiser Phil Graham said the workers were struggling.
“If they don’t get to the current living wage . . . as we all know, the cost of living is escalating.
“It’s going to create more poverty and hardship on families which naturally creates problems at home.”
He said it could be “easily resolved” by paying a living wage.
InfraCore’s Fraser said the unions’ current request was for a minimum of $26 per hour as well as pay parity for all rates above this.
“InfraCore does not have the ability to meet this.
Seventy-five InfraCore workers went on strike on Friday in a bid for better pay. Photo / Laura Smith
“Based off their comments, it seems that their main concern has now changed to just the lowest rate lifting to $26 per hour. We will engage with the unions again to explore what this could look like.”
Fraser previously told LDR the organisation was under financial pressure. Any more than the 5 per cent it had “stretched resources” to offer would be unsustainable.
For the year ending in June, the council would have given $13,279,000 to Infracore.
Its total revenue was projected at $15,466,00, but after expenses, it estimated a before-tax loss of $39,000.
Staff costs made up $9,266,000 of the total $15,198,000 expenses.
Seventy-five InfraCore workers went on strike on Friday in a bid for better pay. Photo / Laura Smith
The Service Level Agreement the council had with InfraCore was funded by rates and corporate services.
General manager Thomas Colle said the agreement was 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.
Seventy-five InfraCore workers went on strike on Friday in a bid for better pay. Photo / Laura Smith
Mayor Tania Tapsell previously said funding increases would fall to the community, which needed to be considered. She said it was not always possible the council could fill shortfalls.
She said it was expected that CCOs independently manage, bid for contracts and deliver services in a sustainable way.
Stavros Michael, the council’s infrastructure and environment general manager, said at midday on Friday, there had been no major impacts resulting from the action.
Workers have 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.
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.
