Layoff clouds engulf Air NZ

By DANIEL RIORDAN

Air New Zealand is offering thousands of its workers on both sides of the Tasman voluntary redundancy.

The company is integrating the operations of Ansett Australia, acquired in June, and trimming the combined workforce of 23,000.

Air New Zealand spokesman Alastair Carthew said that while all staff had been offered redundancy, not all would be eligible. Only workers in parts of the company where managers had identified duplication would be allowed to go.

Mr Carthew declined to identify those areas or the number expected to accept redundancy.

Darien Fenton, secretary of the NZ Service and Food Workers' Union, which represents more than 1000 ground staff and clerical workers, expected most of the eventual losses to be within the corporate area.

She said secretarial staff in particular would be likely candidates, given that Air New Zealand had let go a clutch of middle-level managers in recent weeks.

The redundancy packages depend on years of service. Staff who have been with the airline more than a year are being offered six weeks' pay plus two additional weeks for every subsequent year, up to a maximum of 54 weeks' salary.

Martin Foley, Victorian president of the Australian Services Union (ASU), which represents Ansett clerical staff, said he believed the areas targeted for layoffs were information technology and human resources.

He criticised the timing of the announcement, just before Christmas.

An Ansett spokeswoman said staff had been offered the redundancies prior to Christmas to enable them to discuss the prospect with their families over the break.

Mr Foley said industrial action was not being considered, largely because the union's labour agreement prevented strikes, "but if things get out of hand ... "

ASU assistant national secretary Linda White said the impact on staff morale would be widespread.

Some staff would leave because they were fed up, and others would perceive the business as going downhill and get out.

Ansett's engineering workers are unlikely to be affected. The launches of Virgin and Impulse in Australia has created a shortage of engineers, said Ian Laing, president of the Australian Licensed Aircraft Engineers Association, which represents about 750 Ansett workers.

Ansett had canvassed his members a year ago to see who was interested in taking redundancy, said Mr Laing, but none of those who had volunteered had been allowed to go.

Mr Carthew said staff had until the end of next month to offer themselves for redundancy, and changes would be made before June.

Air New Zealand/Ansett has combined revenue of $7.5 billion.

Arch-competitor Qantas has 29,000 staff and revenue of $11.7 billion.