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Maori "challenge" counterproposals put a damper on New Zealand airline outsourcing plans
21 December 2005
A proposal to sack more than 600 engineers at New Zealand’s national airline has been scuppered after unions’ high profile publicity campaign and court action threat ushered in a corporate turnaround.
Air New Zealand’s plans to dismiss 600 of its engineers and close its Auckland heavy engineering division, where its aircraft are repaired, were part of moves to outsource the work to China. It is widely acknowledged that Chinese transport workers are among the lowest paid workers in the world.
The unions representing the engineers, both ITF affiliates, - the Engineering, Printing and Manufacturing Union (EPMU) and the Aviation and Marine Engineers Association (AMEA) - launched a prominent campaign against the job cuts. This included a presentation to the company on 8 December by a Maori warrior of a "wero" or challenge containing the unions’ counterproposal.
Bowing to union pressure, management finally agreed to come to the negotiating table.
A compromise deal has now been negotiated - the company has agreed to retain an element of its maintenance, repair and overhaul operations and backed down over its plans to implement a 58-day consultation period over outsourcing. The unions also won an agreement that will save at least 50 per cent of jobs.
In a "good faith" gesture, the union called off proposed mass demonstrations due to take place last Friday and suspended court action.
George Ryde, AMEA National Secretary, believed that it would make a viable business case to keep Air NZ's heavy engineering work in New Zealand and commented: "The Unions' proposal contains a range of things, some of which the company hasn't asked for or thought about."
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